ETHICS CASE STUDY: HEWLETT

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A CASE RELATED TO CORPORATE SPY WORK
 Dates back to 6th century.
 Unethical and illegal method of
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collecting information related to* Corporate strategies.
* New product development/launch
plans.
* Target markets.
* Customer and supplier plans.
* Merger and acquisition plans.
* Pricing, advertising, packaging etc.
 Agents do not abide by any legal or ethical
guidelines , & do anything to get competitive
information.
 It includes dumpster diving, social
engineering, interviewing disgruntled
employees, bugging offices , hacking
computer systems and telephone lines.
 Type : Public
 Founder(s): Bill Hewlett & David Packard
 Headquarters: Palo Alto, CA, United States
 Area served: Worldwide
 Largest technology company in the world
 Industry: Computer Systems, Computer Peripherals,
Computer Software, Consulting IT Services
 Products: Computer Monitors, Digital Cameras,
Indigo Digital Press, Networking, Personal Computers
and Laptops, Personal Digital Assistants, Printers,
Scanners, Servers, Storage Televisions.
 Operating income: US$ 10.473 billion (2008)
 Revenue: US$ 118.364 billion (2008)
 Net income: US$ 10.473 billion (2008)
 Total assets: US$ 113.331 billion (2008)
 Total equity: US$ 38.942 billion (2008)
 Employees: 321,000 (2008)
 PERSONS INVOLVED
 1. Patricia Dunn, Chairwoman, HP.
 2. George Keyworth, Board Member.
 3. Ann Baskins, Head Attorney.
 BACKGROUND
 HP found that some of its highly
confidential data regarding HP’s long
term strategy leaked during January,
2006.
 On September 5, 2006,
 Newsweek published a story…….
 “Chairwoman of HP, Patricia Dunn, has
hired a team of independent electronicsecurity experts who spied on HP board
members and several journalists, to
determine the source of a leak of
confidential details regarding HP's longterm strategy in January, 2006.”
 TECHNIQUES USED BY SECURITY
EXPERTS:
 1. Pre-texting to obtain call records of
HP board members and nine journalists,
including reporters for CNET, the New
York Times and the Wall Street Journal.
 2. Investigators dressed as cleaners
and entered inside the San Francisco
offices of The Wall Street Journal and
CNET.
 RESULT OF SPYING:
 ADVANTAGE:
 Board member George Keyworth was
found guilty for leakage of confidential
data.
 On September 12, 2006 Keyworth resigned
from the board .
 RESULT OF SPYING:
 DISADVANTAGE:
 On September 22, 2006,Dunn was forced to
resign.
 On September 28, 2006, Ann Baskins, HP's
general counsel (head attorney) resigned
hours before she was to appear as a witness for
the case.
 Faced investigation by the government
 On December 7, 2006 hp paid $14.5 Million to
settle civil charges brought by the California
Attorney General.
 UNETHICAL METHODS USED…….
 Lies
 Fraud
 Trapping of private telephone lines
 Misrepresentation
 RIGHTS VIOLATED……
 Right to privacy.
 Right to free speech.
 Right to private property.
 Right to confidentiality.
 1. Never expose your internal
network to outsiders
 2. Make sure all storage areas are
secure
 3. Ensure that data at rest is
properly protected
 4. Protect against data
deletion and data loss
 5. Protection from data
tampering
 6. Regular auditing, random
and regular monitoring
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