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."
The leader of our country sets an example for the leaders of our corporations
Can someone please explain to me what authority she had to authorize phone taps on private cell phones? She is not law enforcement. WTF?
-d
"Here Lies Philip J. Fry, named for his uncle, to carry on his spirit"
Tom Perkins, as in Kleiner, Perkins, Caufield & Byers.
This is pretty dramatic.
. . . has documents here: Hewlett-Packard Targeted Board In Leak Probe
...the future crusty old bastards are already drinking the Kool-Aid.
Dunn sounds like a melodramatic sociopath bent on her own power trip. It's bad enough to hire outside inspectors to track down a leaker, and to resort to snooping on personal call records, which is truly dirty pool. But once she had her proof, why not confront that director personally, rather than pull a stunt like this in front of the full board? Had she confronted this guy directly, he may have resigned quietly. Instead, she's now thrown the spotlight on her disregard for personal ethics or the respect of her colleagues.
That said, it's pathetic how easy it was for these investigators to get personal phone records on these accounts. You'd think there would be some standards in place, such as only sending the information to addresses already tied to the account, or something. I'm no security expert, but this looks pretty shoddy.
Stop by my site where I write about ERP systems & more
Funny, but quoting from The Register article
"The situation is regrettable," Ms. Dunn said in a statement provided to the Wall Street Journal. "But the bottom line is that the board has asserted its commitment to upholding the standards of confidentiality that are critical to its functioning. A board can't serve effectively if there isn't complete trust that what gets discussed stays in the room."
Can the board serve effectively if there isn't complete trust or confidentiality anyway? If the CEO is spying on you at any or at all times?
More music, fewer hits
Funny. I'd call it 'lying'.
If you have to think up a euphemism for what you're doing, it's probably wrong.
Unless it's funny, like 'bumping uglies' or 'dropping the kids off at the pool'
What's the frequency, Kenneth?
That's right. In fact, no one should ever mind anyone reading their (e)mail or listening to their phone calls, unless they have something to hide. It should be legal for cops to just come in your house any time they feel like it, just to make sure you're not doing anything you shouldn't be. Random house checks by the cops would help put an end to the evil crimes of pot smoking and non-missionary sex. After all, if you're not doing anything wrong, you don't have anything to hide.
OK, who's the first to volunteer for random house checks?
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.
Ninjas don't carry tic tacs
For many years we have been told that, if women were in positions of power, they would behave differently than men. This assertion was based solely on the premise that women are somehow fundamentally different than men, and that this difference would ensure that female executives and politicians would be somehow "better" then males.
This has proven not to be the case, as evidenced by the behavior of various corporate and political women in power. While true that the Cynthia McKinney's and Carly Fiorina's of the world are not the rule, they do lead to questions of whether women are so fundamentally different after all.
Is Hillary Clinton somehow better than the other senators simply because she is a woman? Is she exempt from being accused of being an opportunistic carpetbagger, merely because she has a set of tits? That is what some would have us believe.
If I can call Sen. Stevens a bastard, I can call Sen. Clinton a bitch.
"As God is my witness, I thought turkeys could fly." A. Carlson
...is Tom Perkins's ethical behavior. I only hope that when I get to be a director, I would have the cajones to resign rather than to serve under or carry out orders from a boss with a history of such behavior. Well, that and the handwriting on the wall (SEC investigation) might have helped influence his decision. But what a way to go!
Hi Hoi Polloi. You're totally right. I should have been more clear. The board has known what Dunn did since May. So my real thought is not that they all should have resigned, but that they all should have done something. Yes, make her resign. If not that, then public disclosure and shareholder review. Something. But they sat on this for May, June, July, August, and now we're into September, and they've still done nothing. Well, they've finally been caught off guard by being exposed. Maybe that will stir them into action.
I just think these dumb idiots bent over and let her screw them. And when they found out how much they had been violated, they apparently just stayed hunched over, waiting for more. It's pathetic.
My Greasemonkey scripts for Digg &
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.
having women in power won't necessarily make for a kinder, gentler world.
That's because it's a certain personality type that goes after power, and that type is gender neutral.
Also, if women ran the world, the Earth would be a bombed out nuclear ruin after the first full moon.
Oh, I'm gonna get modded down...
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 :) )
In my mind this is symptomatic of the corporate life in the higher echelons. Basically, these people at the top don't have te requisite life experience, or call it wisdom, or even common sense, to act like adults. Corporate life to these people is nothing more than a replay of high school. They're scheming, pulling pranks, cheating, and generally making stuff up as they go along.
It's not that there aren't established procedures and rules (and laws) of how to monitor employees (even board members). It's that this Ms. Dunn can't be bothered to look it up. Or even ask human resources. Making stuff up as you go along is what passes for "innovative", "bold", "leadership.
She's cut from the same jib as, say, those Enron guys. These are people who see life as a game, and yes, they're winning, if you keep score the way they do. Morally, as human beings, they're of course pieces of shit.
It's not surprising the rest of the board members stayed on board. They're used to treating people like children, and they've not fully grown up themselves, so this sort of irresponsible prank seems logical to them. They're the business equivalents of Bill O'Reilly - great ratings, but ultimately they're just spewing hot air, and their oversimplified black-and-white world is so disconnected from the real world, they wouldn't know it if it bit them in the ass.
But there you have it. Apparently the Chairwoman at HP is willing to go to great, and illegal lengths, to run the company. Will the shareholders say "hey, wait, maybe having someone at the top who's willing to commit felonies isn't such a great idea"? Only time will tell..
SCO employee? Check out the bounty
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
However, she is easily indictable and her imprisonment will serve as a fine example for others of her ilk who doubtless think likewise.
In California, where HP is headquartered, it is a crime to obtain labor through "fraudulent representation or pretense" is guilty just as if they had stolen services with similar value (California Penal Code 532). By representing themselves as the customers of the phone company whose records were requested, they obtained the labor of customer service staff under false pretense.
It is likewise criminal, in California, to willfully obtain "personal identifying information" (including, among many other thingsother things, name, address, telephone number, place of employment, or social security number) of another and then use that information for any unlawful purpose, including "to obtain, or attempt to obtain, credit, goods, services, or medical information" (Penal Code 530.5, emphasis added), without the consent of the person whose information was used. Here, they used several pieces of personal information concerning the directors targetted to obtain services from people with whom those directors did business, and did so without the directors consent.
So to say there is no law which makes it illegal to use someone else's personal information to enable yourself to impersonate that person to get someone to give you information is, well, not exactly true, even outside of banking information.
"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
Mostly agree with you.
Given that corporations are essentially immortal sociopaths, I think their structures *select* for sociopaths or people who are comfortable being in a sociopathic structure.
Only "young" corporations do not show these traits.
It is possible to be honest/noble but you won't get campaign contributions from the corporations (so you must be in line with a sociopathic agenda to get funding). The lust for power is very corrupting- even of people who start out good. A lot of idealistic republicans broke their word over term limits because they came to think they were more important than they really were.
She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
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