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Boardroom Spying Debacle at HP

theodp writes "As word spread that HP was dumping Board member George Keyworth for press leaks, Newsweek broke the bigger story: HP Chairwoman Patricia Dunn was so obsessed with finding the leaker that she authorized a team of independent electronic-security experts to spy on the phone records of calls made from HP Directors' home and private cell phones. Not only that, phone records were obtained via pretexting, the controversial practice of obtaining information under false pretenses. After Dunn laid out the surveillance scheme for the Board last May, HP Director Tom Perkins quit on the spot, characterizing Dunn's actions as illegal and unethical. HP is also coming under fire for playing dumb to the SEC about the reasons behind Perkins' resignation. Perkins, who helped launch HP's computer division in the 60's, has asked the FTC, FCC and the Justice Department to investigate."

15 of 505 comments (clear)

  1. Pre-Texting at a Bank by neonprimetime · · Score: 3, Interesting

    Legal experts vary in their views on the extent to which pretexting is a violation of criminal law.

    I work at a bank, and we have to take yearly courses on Pre-Text calling, because it's such as issue here.

    also here is printer unfriendly with the annoying javascript popup

  2. I don't care... much. by Anthony+Boyd · · Score: 3, Interesting

    Believe it or not, it's hard to get worked up about this. Sure, reading the Slashdot text got me mad. It sounds shocking -- what a huge violation of privacy! But then, reading the article, you see that aside from 1 director who resigned, all the other directors, including the leaker, have stayed on board! In other words, the guys whose privacy was invaded didn't care. It was done to them, and their response was to keep serving.

    So why care on their behalf? These walking lobotomies need to stand up for themselves.

  3. Who wants to be a HP customer now? by MooseTick · · Score: 4, Interesting

    If Patricia Dunn spies on her employees like this, how can I trust her enough to be a customer of HP?

    If they were looking at company issued phones, computers, or other equiptment I would say that is fair game. When they pretend they are you and get information from services providers where you pay the bill they have crossed the line. I was shopping for a new laptop and HP is now out of contention.

    The only way this can be corrected is if HP cans Patricia Dunn ASAP. Tom Perkins should be running HP. He actually has a moral compass and stands by what he thinks is right.

  4. Re:Doubleplusgood! by KenSeymour · · Score: 3, Interesting

    If this were some young geek, we would say "social engineering" and say that the
    folks that gave up the information were idiots. We might even say what a great
    guy the young geek was for pointing out the flaws in a company's security system.

    Both are lying.

    --
    "We can't solve problems by using the same kind of thinking we used when we created them." -- Albert Einstein
  5. It probably won't make any difference. Here's why by Moraelin · · Score: 5, Interesting

    More like it won't make any difference, though not for the obvious extrapolation that everyone will make at that phrase. It's that regardless of which gender you favour, there'll be a certain _kind_ of person who makes it to the top. It's not whether most men are better or most women are better, it's that those who end up at the top will _not_ actually be representative of the majority of men or women anyway.

    The world today, at least the western world (though I wouldn't be surprised if other parts too) has a very different minority that's disproportionately represented at the top: the sociopaths. It's not even much of a surprise. In a society and culture where we expect -- and indeed _demand_ -- sociopathic behaviour from corporations and politicians, the ones that make it to the top are those who can promise just that: to behave like a sociopath, and take decisions without letting emotions or empathy get in the way. And there are reasons too, such as their being natural actors and having no loyalty except to themselves. So they can put up an outstanding show for the boss and get a promotion, while you're busy doing actual work.

    The thing is, what they do has no resemblance with what Joe Average and Jane Housewife does. Only about 1% of the population scores clean over 30 on an APD (Antisocial Personality Disorder = sociopathy/psychopathy) test. We're talking the creme de la creme, the elite among the elite. (To put it into perspective, the average Joe or Jane have maybe 1 confirmed trait or spurious minor manifestations of 2-3, and even those are often just bad habits or benign when they're not accompanied by others.) They're people who are actually more anti-social (in the medical sense) than the hardened criminals in a prison (who tend to average somewhere in the 20's), yet are smart enough to not end up in prison. You can't really look at what a sociopath does and extrapolate it at what the average man or woman would do, nor viceversa.

    They're not only a minority, but they don't even function mentally in the same way as you do. Even if a lot of common people do get caught in an admiration of sociopaths and their methods, in practice they couldn't do the same things. They're just not wired the same way.

    I.e., what I'm saying is that you can't look at this case and think she's representative for women as a whole. And conversely, those who think that "having women in power would make for a kinder, gentler world" make the wrong extrapolation in the other direction. They look at some of the average women around them and think, basically, "hey, I bet if she was a CEO/Chairman/President/whatever, it would be a nicer world." Well, maybe it even would, except it won't those who end up in position of power.

    Just changing the genre stereotype won't make the world any better, as long as the same kind people are left to run the show. What can change the world is (A) recognizing these people for what they are, and (B) having enough checks and safeguards so they can't run amok and cause major damage.

    --
    A polar bear is a cartesian bear after a coordinate transform.
  6. Re:How did she do that? by Dhalka226 · · Score: 4, Interesting

    (Standard IANAL disclaimer here.)

    So, as long as you're in a company bathroom, we can video tape everything you do? After all, it's company property.

    Well, bad example (I'll mention why in a minute), but the answer to the spirit of the question is: Yeah, probably.

    You may or may not have any right to privacy at work. Most Americans see a definite right to privacy in the Constitution, but they fail to understand that the Constitution is meant as a limit on the power of the government. Specifically, it was meant as a limit on the power of the federal government; not until the Fourteenth Amendment did the US Constitution come to apply to the states as well. If it was a police officer who set up the cameras in the bathroom with no cause, it would almost certainly be illegal.

    That said, I believe most case law thus far has come down on the side of "while you're on company property, they can do whatever they want to you." Including, in some cases, opening up your drawers and rifling through your papers; reading your emails; etc. No, they can't watch you in the bathroom--but not as a privacy issue; they couldn't do that because it may very well violate other laws, such as voyeurism. Telephone calls may also be safe, but again, not because of your right to privacy: Depending on the state, it may simply violate wiretap laws.

    Some decisions have begun to come down saying that employees do have some expectation of privacy at their places of employment, and I expect that to be the general trend. That said, I believe it's still in the minority. Your employer still has a tremendous latitude in determine how much privacy to give their employees and when it might be time to violate that.

    More to the point of the case, however, it appears that they did not actually tap anybody's phone. Rather, they looked at phone records. You can bet that it is perfectly within a company's rights, at least at present, to pull the phone records of any employee for any service the company pays for. If they truly did trick the employees' phone companies into releasing their own personal phone records, then that sounds to be entirely illegal.

    So, like I said, the spirit of your initial question seems to be yes: Employers can watch an awful lot of what you do so long as they are not violating any specific laws while they do it. It's the difference between violating a law and violating a right: It does not seem to be the rule (yet) that companies have any obligations to extend you any rights not backed up by law.

  7. Used to work for Pattie Dunn - what a change by OutOnARock · · Score: 4, Interesting

    As a former employee of Pattie Dunn when she worked at Wells Fargo Nikko Investment Advisors which became Barclays Global Investors, I always found Pattie to be a person who really cared about her employees and their personal lives. She was always approachable, listened to your concerns no matter how high or low you were in her chain of command, and without sounding too sexist, had a great smile, a charming personality, and was the easiest on the eyes boss I've ever had. I can only imagine what HP has put her through to cause such a change in her attitudes. On the other hand, perhaps this is an example of what has happened to America in general. "Truly a sight to behold. The man, beaten. The once great champ, now a study in moppishness. No longer the victory hungry stallion we've raced so many times before. But a pathetic, washed-up aged ex-champion. " (obscure Better Off Dead quote :) )

  8. They didn't get mine by Groo+Wanderer · · Score: 5, Interesting

    Coming from someone who was ripping HP up and down at the time for their moronic behavior, I can say three things with authority. First, I had sources on that level. Second, they didn't get my sources, not even close. Several witchhunters resigned and/or were canned while looking for Inq sources, but as far as I am aware, they did not find a single one, teh fewls. Third, my sources are a lot smarter than Mr Keyworth or Ms Dunn.

    The sad part is, they will probably get away with all of this. The sadder part is they are looking in the wrong place. As a member of that nebulous group know as 'the press', I can say that people speak out and leak when things are going badly, wrong, and management has their heads stuck up their collective asses. Rather than fixing the problem, they assign blame.

    In any case, I should drop my guys a line and have a laugh.

                  -Charlie

  9. Re:Trust in the boardroom by Rude+Turnip · · Score: 3, Interesting

    Not really. How many people knew that Bill Ford would be replaced by the former Boeing CEO until yesterday? Pretty much just the Ford Board of Directors and some attorneys.

    There is a certain amount of information about the company that has to be disclosed, and most of that appears in annual reports, quarterly reports and certain, required press releases. Shareholders have a right to attend shareholders' meetings, which could include employees if they happen to be shareholders.

  10. Yes and no by Moraelin · · Score: 3, Interesting

    As I was saying in another post, the fallacy there is assuming that it would be the Jane Average that ends up in those positions of power. Except those who end up at the top, male or female alike, are the kind that aren't representative of the John Does and Jane Averages that make up the rest of the population. But that goes the other way too: comparing Stevens to Clinton doesn't really say anything about comparing men to women in general.

    I don't know if men as a whole are better or women as a whole are better (probably neither is better), but comparing the sociopaths at the top won't tell us anything about that. The ones at the top will be the ones who _don't_ actually have the instincts/reflexes/education/etc associated with being either the average man or the average woman. You won't find any maternal or paternal instincts there, just people whose only loyalty is to themselves and care less about everyone else than you'd care about the NPCs in a computer game. You won't find any inherent adherence to either male or female hierarchy/clique/whatever dynamics and mechanisms, either, but at most a determination to mis-use and abuse those to one's own interests. Etc. Anything that you might think of as an inherent trait of either males or females in the average people around you, at that level you won't find people actually displaying either. They may fake it, they may use it to push your buttons, but essentially both are a category of their own that's neither male nor female.

    --
    A polar bear is a cartesian bear after a coordinate transform.
  11. Not at all by Groo+Wanderer · · Score: 4, Interesting

    "Dude, don't you hate it when you forget to check "Post Anonymously" box?"

    Not at all. They know who I am, and if they had a shred of evidence that I did anything wrong, they would have sued me long ago. I post everything with my name attached, and with my email on it where applicable. I tried calling HP and talking to them several times, but they did not return my calls. I did leave all my contact info, and have done so numerous times at trade shows. If you don't do anything illegal, you don't have to hide behind anonymity.

    That said, I did not do anything wrong, have never signed an NDA with HP, or agreed to anything of the sort. On top of that I scrub my emails religiously and regularly so if they send me paperwork, they will get nothing because I have nothing. That said, I have looked for the names of the people I wanted to talk to, and I don't have them any more. Sad, a quote on the Inq now would have been quite topical. Scrubbing mail is a double edged sword.

    Either way, I am not worried at all, what are they going to do call up my ISP and pretend they are me to get my records? That would be flat out illegal, and they would never do such a thing.

                -Charlie

  12. Re:It probably won't make any difference. Here's w by ScrewMaster · · Score: 3, Interesting

    Well, since bus drivers and construction workers (and, yes, software engineers) have to take invasive tests (I had to pee in a cup ... kinda irritated me at the time but I wanted the job and they didn't require any kind of non-compete agreement so I figured it was a reasonable tradeoff) of one sort or another in order to obtain work, I don't see any reason why it shouldn't be a requirement for corporate upper management to have to take an APD test. At the very least, they should have to take something like the old MMPI so that we have at least some idea if they are complete whackjobs or not.

    I'm not saying that should result in their not being hired for such positions: that would depend upon an individual corporation's policies. But if the results of such testing were required to be a matter of public record, it would be the first thing a potential investor would examine. It would also discourage other sociopaths from even applying for such positions: the last thing a true sociopath wants is to be unmasked. Yes, I know ... that's rather private data and isn't something that most people would want available to anyone, but if you're not willing to submit to such a test, maybe you shouldn't be allowed to run a major corporation.

    Now, granted, there are those that will complain that such testing and publication would be grossly unfair and violate various civil liberties and all that. And I suppose they'll be right in that: I'm not an attorney so I have no idea of what laws such testing would run afoul. But the unfortunately reality is that many of these individuals absolutely cannot be trusted and some means of early detection needs to be put in place. It really doesn't help when the Ken Lays and Bernie Ebbers and others like them are eventually caught (if they are ever caught) because by then the damage has been done, people have been hurt. Look at what Ms. Fiorina accomplished in just a few short years, and managed to walk away from scot-free. It's also obvious that stringing a few of them up hasn't had the desired deterrent effect either. And why should it? If you feel that you're above the law you're not going to let the law get in your way.

    --
    The higher the technology, the sharper that two-edged sword.
  13. Long time employee, first time truly angry by ContractualObligatio · · Score: 3, Interesting

    Normally when I comment in relation to HP (I'm an employee) I stay anonymous and just correct facts. ACs tend to get modded down but hey, at least that way I don't get my posts interpreted simply by what the reader thinks of HP. But typically the topic is "Alpha vs. Itanium" or somesuch where no matter anyone's claims to knowing the one shining truth, it comes down to matters of opinion (hey, I'm a software guy, what would I know...).

    But this situation is different. It's truly embarassing and I hope Dunn suffers in consequence. Talking to the press is bad. Whether or not you agree, that was what the board decided. Any board member who disagrees should stand up and be counted or have the guts to resign. I get paid good money, have access to confidential information, and would like to think I have the standards to quit rather than get petty ego-boosting revenge by talking to the press. Whistle blowing bad business practice etc is noble. Leaking product roadmaps etc is just masturbating.

    So Keyworth deserves to leave the board. His actions, however, just don't compare to Dunn invading the private lives of her colleagues.

    HP has done a lot and does a lot to be proud of. Every once and a while a salesperson does a stupid thing or a business decision is "sub-optimal", but for instance we haven't joined the ranks of the many tech companies playing silly buggers with the financials. We've been getting our act together over the past year and a lot of us are hopeful we will become a great company again.

    Then last thing before I go to bed (I'm in the UK), I hear that the board doesn't even understand that lying to get an innocent person's personal information is a bad thing. I don't care whether it's illegal or not. It's a shit thing to do. And I hate going to bed pissed off.

    There's one combination of things that always makes me angry. First, acting in a clearly "bad" way - whether that's illegal, unethical, plain rude, whatever. Second, when it's also a stupid thing. What do we get for outing the leak? Not much (but there can be minor advantages to the competition being in the dark for a few months, trust me). Will the way we've behaved come to light? Of course - look at Tom Perkins letters, this eventually becomes a matter of public record via the SEC for fuck's sake! Will it be embarassing if a customer brings it up? Yes, perhaps with a financial impact, and with the story on e.g. front webpage BBC, everyone's going to know about it.

    I hope they ask her to resign.

  14. Re:An example by zstlaw · · Score: 5, Interesting

    Well my mother had a long talk with a member of the whitehouse transition team back in 2000. And I remember the guy she spoke too complained about how they were obsessed with Iraq even back then. If you look at how they are a bunch of energy company old hands, and you look at how when Saddam rose to power he nationalized a bunch of oil holding you can start to see the big picture.

    The transition team fellow also complained that the admisistration was the most paranoid group of people that he had ever had to work with. Everyone was in CYA (cover your ass) mode constantly.

    Also on the backstabbing nature of the insiders I can attest that my mother and her boss were repeatedly called before congressional inquires on spurious matters mainly focused around the fact that the government agency they worked for advocated condom use. (She worked at the center for disease control) Her boss was a nobel prize winner for medacine who eventually stepped down due to the constant interuptions of his work and the hassling of his family and friends. (They were also called to these spurrious inquiry session)

    It is not that Bush is corrupt, but that a single group has siezed power and allow no dissent nor debate. There is only an emperor and his minions all follow in lockstep.

  15. Let's hear it for Perkins by Infonaut · · Score: 4, Interesting

    Here's a counter to the examples we so often see of businessmen doing the wrong thing. You don't often hear about people in business doing the right thing, because that seldom makes a juicy story. In business, you have to make ethical decisions all the time. It's nice to see a news story that sheds some light on one of those decisions properly decided.

    --
    Read the EFF's Fair Use FAQ