Hewlett-Packard (HP) and Pretexting: Spying on the Board

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The reading that was investigated consisted of a case study from Marianne Jennings entitled “Fannie Mae: The Most Ethical Company in America”. Jennings (2009a) writes about how Fannie Mae’s ranking was number one in the United States of America in 2004 as being the most ethical company. Jennings (2009a) writes that CEO Franklin Raines challenged his employees to double Fannie Mae’s earnings per share (EPS) within five years from $3.23 to $6.46. Consequently, this enabled employees and managers to be eligible for an award under incentive plan (AIP) provided they met the five-year goal Mr. Raines created. Employees and managers were enthusiastic about the ability to influence their salaries, but then human greed took over and things went horribly wrong for Fannie Mae. Jennings (2009b) writes that the government audited Mr. Raines and found that he was behind the altering company’s earnings to meet forecasted projections. After the government’s investigation into Fannie Mae it was determined that Raines created a culture of arrogance and unethical behavior. This paper examines five discussion topics, which Jennings (2009a) poses in a case study that links to the article “Fannie Mae: The Most Ethical Company in America”. The first discussion topic posed was, “Consider the ethics recognition that Fannie Mae received and the reasons given for those awards. Then consider that Fannie Mae was rated by Standard & Poor’s on its corporate governance scoring system as being a 9, with “10” being the maximum CGS score. Fannie Mae received a 9.3 for its board structure and process. What issues do you see with regard to these outside evaluations of companies that relate to governance and ethics? Is there a difference between social r... ... middle of paper ... ...studies.com/volume/2008/OliviaJackson911andUS- Economy.pdf Jennings, M. (2009). Business ethics: Case studies and selected readings. Mason, OH: South- Western Cengage Learning. Jones , K. (2007, January 18). It's official: Pretexting is illegal [Information on Business Technology]. Retrieved from http://www.informationweek.com/news/196901982?queryText=pretexting Shamoo, A., & Resnik, D. (2009). Responsible conduct of research. Retrieved from http://books.google.com/books?hl=en&lr=&id=dP7oKntCUUUC&oi=fnd&pg=PR9&dq =egal+conduct+versus+ethical+conduct.&ots=PD- 4J3Mydp&sig=E1CFrgctPXyV0Sp9eIrHmPzTmgA#v=onepage&q&f=false Suh, M. (2010). Corporate counsel: In the crosshairs of a criminal investigation. Business Torts Journal, 2(2), 8-12. Retrieved from http://www.gibsondunn.com/publications/Documents/Suh- CorpCounselInTheCrosshairs.pdf

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