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David Batstone

Right Reality:
Treading All Over the HP Way

by David Batstone

Am I missing something at Hewlett-Packard?

The Justice Department has been investigating the company for fraudulent investigative techniques that aimed to uncover who among its directors might be leaking information to the press.

Then this past week, CEO Mark Hurd announced that he would assume the role of chairman following the resignation of Patricia Dunn - the former non-executive chairman of the board.

Admittedly it's standard corporate operating procedure when a scandal hits: Find a villain to take the rap (in this case the hammer fell on Dunn) and circle the wagons. But am I the only person in the business world who wonders how Hurd can be promoted and given additional responsibilities when so much deception took place on his watch as CEO?

Dunn hired companies to obtain the personal telephone records of HP board members and reporters who covered HP. To do so, it used pre-texting: pretending to be those people in calls to the phone company so that they could obtain their data. Such pre-texting was carried out on seven directors, nine journalists, and two HP employees.

Hurd admitted that he had approved of a company plan in March to send a fraudulent e-mail to a reporter. The e-mail was intended to appear to be a leak from a discontented senior manager. The aim in sending it was to implant a software tracer in hoping to track what the reporter did with the e-mail and locate the source of the leak. Hurd claims that he didn't know about a software tracer planted in the message. Such selective memory loss never inspires confidence.

At the time, Kevin Hunsaker, HP senior counsel and chief ethics officer (please, someone at HP, suggest that Hunsaker's latter title be revoked) assured the company that the techniques used in the probe would be legal. Also, company counsel Larry Sonsini, arguably the most eminent lawyer in Silicon Valley, told various members of the board that the methods used to acquire information had been not generally unlawful and within legal limits.

The advice from the chief ethics officer and legal advisor does to some degree help us understand why HP was not more alarmed about the legal ramifications of their actions, but how can the people involved in the scandal believe that spying their directors, journalists and employees might be acceptable?

In its past, HP has been a corporate pioneer on how to do the right thing. As recently as 2005, the International Association of Privacy Professionals (IAPP) joined HP in the sponsorship of the HP Privacy Innovation Award ‘to recognize and foster world-wide leadership in privacy protection and practices.’ How ironic.

It is assumed that HP found the leak its leak. The method that the company used to find it was the fastest way to do so. But it sold out its values to in the process. As a consequence, it may destroy in just few days the reputation it has worked to build for years.

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Do you consider HP's activity as a breach in trust, or a necessary to inside political fighting? Share your ideas at the RightReality blog.

the WAG

October 2, 2006

Sound Byte: Make Life Count

"Life's too short to sell things you don't believe in."

- Patrick Dixon, Business Author/Futurist

Tool Kit: 7 Rules For Going Solo in Business

By Gary Erickson (Co-founder of ClifBar)

Nearly five years ago, I came within hours of selling ClifBar Inc., the energy and nutrition foods company I had co-founded, for $120 million. Instead, I chose to buy out a 50 percent partner and go it alone. My wife Kit and I decided that 100 percent ownership was the right answer for Clif Bar, and we struck a deal that led to obtaining a loan and owning the whole company rather than taking on new equity partners. Here is a summary of why we decided to own it all:

1) Control of the Vision - When other partners come onto the bus, it becomes more difficult and complicated to steer toward the vision that defines the company.

2) Simplicity - Everything, every decision, every turn becomes less complicated when there are fewer owners to answer to. I do advocate consulting with outside advisers and peers.

3) More Nimble and Fast - The more owners involved, the more time it takes to make decisions.

4) Able to Take Bigger Risks - With multiple owners the tolerance for risk goes down.

5) No Hostile Takeovers - Every option I looked at led to the road of being bought out at some future date. As 100 percent owners, it's 100 percent our decision whether we want to exit or not.

6) More Fun - "Being your own guide" puts the pressure on, but for us it is more fun and truly a wild adventure.

7) A Different Bottom Line - Sometimes we make decisions (organic ingredients, employee bonuses, etc.) when they may not make sense for the bottom line. But we are in business for other reasons.

Source: Worthwhile magazine

Work Trends: Workers Want Chance to Volunteer

A new survey in the United Kingdom has revealed that the vast majority (92%) of British workers would prefer to work for a company that enables volunteering. The study, from the employer perspective, found that benefits linked with employee volunteering include higher workplace morale, less absenteeism, and increased worker productivity.

Click here.

Data Point: MBA students are No. 1 at cheating

MBA students are the biggest cheats of all graduate students, with 56 per cent admitting to misdemeanors such as using crib notes in exams, plagiarism and downloading essays from the web.

The statistic comes from a survey of graduate students to be published in the Academy of Management Learning and Education journal. The report is based on data from about 5,300 survey respondents at 54 colleges and universities in the US and Canada, including 623 students in 32 graduate business programs.

Read the entire article at The Financial Times.


The Tail WAGs: Reader Feedback

In response to the last issue of the WAG, "Selling Out Your Rolodex," Alden Turner writes:

If I use my business card to register for a "free drawing" at a trade show, or post my card publicly as advertisement, then I willingly broadcast that information and accept the consequences. However, if I use my card to disseminate personal info to a friend, colleague or business contact then I intend for that info to be used only in the context of the exchange. To broadcast another's personal info without their consent is not only discourteous but it is also a betrayal of trust."

Read more comments...and add your own opinion...at the Right Reality blog.

Funny Bizness: Early Celebration

This video may teach us to wait to celebrate success until we finish the race.

Click here.

The WAG is produced by rightreality.com

Header image: Photodisc