Ethical Dilemma
How far would you go to find out who
is talking to whom? (Bergstein, 2006; Allison, 2006; Fried,
2006))
In 2006, Hewlett-Packard Development Company LP became embroiled
in a controversy over methods used to investigate media leaks from
its board. HP Chairperson Patricia Dunn could have simply asked the
directors who was the source cited in the story, sought an apology,
and gone from there. With some direct face-to-face communication,
the story would likely have ended quickly. It did not. “Not only
did investigators impersonate board members, employees and
journalists to obtain their phone records, but according to
multiple reports, they also surveilled an HP director and a
reporter for CNet Networks Inc. They sent monitoring spyware in an
e-mail to that reporter by concocting a phony tip. They even
snooped on the phone records of former CEO and Chairperson Carly
Fiorina, who had launched the quest to identify media sources in
the first place.” The situation continued to escalate. For example,
the New York Times reported that HP
consultants even considered planting clerical or custodial workers
at CNet and the Wall Street Journal to
learn who was leaking information to them. Following this, Patricia
Dunn, as well as three executives, left the company. A
congressional hearing and several federal investigations later,
executives were charged with felonies, and HP paid $14.5 million to
settle civil charges related to the scandal. HP is not the only
company to use such methods; recent admissions by the investigation
firms involved suggest that the use of ethically questionable
investigative tactics by large companies is quite common. “It
betrays a type of corporate culture that is so self-obsessed,
(that) really considers itself not only above the law, but above, I
think, ethical decency, that you have to ask yourself, where did
the shame come in?” said Charles King, an analyst with Pund-IT
Inc.
Consider this situation from a multiple stakeholder perspective.
Imagine you are…
- a CEO faced with leaks regarding your
strategic vision. What would you do to determine who was sharing
the information? What would be the advantages and disadvantages of
these approaches?
- a shareholder with HP stock. What
would you want to see done to protect your investment in the
company?
- a board member who was spied upon.
What would your reaction be to learning that you were
investigated?
- an investigator hired by HP. What
role do you have to uphold ethical standards?
As several observers have noted, HP spent a lot of time
establishing whether or not their activities were technically legal
but little time considering whether or not their actions were
ethical.