Hp Board Case Study Essay

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The problem to be investigated is the ethical dilemmas faced by Board members that impact their ability to be effective leaders. This problem relates to the ethical issues raised in the Hewlett- Packard (HP) and Pretexting: Spying on the Board case study which was an examination of leaking Board sensitive information and the investigation of board members. As such this essay explores key factors relating to: (a) the drivers for the investigation and the tacit approval of this conduct; (b) issues of legal versus ethical conduct; (c) issues missed when analyzing the pretext decision and; (d) the governance strengths and weaknesses of the HP board.
The drivers behind the pretexting investigation and the unspoken approval by the legal counsel …show more content…

That is, the Board’s weaknesses were more obvious than their strengths in handling the situation. Some of these weaknesses included: (a) failure to provide cohesiveness governance in leading the organization illustrated by the “board never met to discuss the Compaq merger without Carly being present” (Johnson, 2008) or “directors boosted their potential bonus from $3 million to $9 million in 2001, despite the company's erratic performance” (Johnson, 2008); (b) selfish and self-centered as exemplified by Chairwoman Dunn's eagerness for find the source of the leaks regardless of the consequences (Jennings, 2006); (c) disregard to shareholders interest or the direction of the company as noted by the dissatisfaction of employees and officers by the merger (Jennings, 2009); (d) failure to have or establish a succession plan as illustrated by the board members hiring of Carly Fiorina as someone who could save the company (Johnson, 2008) and; (e) failure to make the organization’s agenda a priority as illustrated by the board members “fighting one another and in investigating leaks than in being stewards of the corporation” (Johnson, 2006). In contrast, the Board did demonstrate strength in the recognition of the issues and wiliness to address issues faced by the organization. The problem lies in how the board addressed the issues which is reflected in the weaknesses previously …show more content…

A., Bernal, P., & Karri, R. (2008). Ethical stewardship - implications for leadership and trust. Journal of Business Ethics, 78(1-2), 153-153-164. doi:10.1007/s10551-006-9320-1. Retrieved from http://search.proquest.com.proxy1.ncu.edu/pqrl/docview/198110131/abstract/1308FC4720B3E1BB890/1?accountid=28180
DiLorenzo, V. (2007). Business ethics: Law as a determinant of business conduct. Journal of
Business Ethics, 71, 275-299. (DOI: 10.1007/s10551-006-9139-9). Retrieved from http://proquest.umi.com.proxy1.ncu.edu/pqdweb?did=1219939821&sid=5&Fmt=6&clientId=52110&RQT=309&VName=PQD Jennings, M. M. (2006). Why do smart businesspeople do ethically dumb things?
Corporate Finance Review, 11(3), 38-38. Retrieved from http://search.proquest.com/docview/198832938?accountid=28180 Jennings, M. (2009). Business ethics: Case studies and selected readings (6th

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