Hewlett-Packard pre-texting scandal

Executive Summary Newsweek paper announced on 5 September 200 ! t"at c"airwomen o# HewlettPackard Patricia $unn "ad ordered t"e investigation o# t"e board o# directors and several %ournalists in order to determine t"e responsible #or t"e in#ormation leakage& '"e investigative #irm "ired by HP used a tec"ni(ue known as pretexting& Pretexting re#ers to misrepresentation o# ones identity in order to "ave access to privileged in#ormation )*uerin! 200+,& '"e investigators impersonated t"e HP board members and nine %ournalists )including reporters #or -NE'! t"e New York Times and t"e Wall Street Journal, in order to obtain t"eir p"one records and determine w"o leaked in#ormation related to HP.s long-term strategy t"at was publis"ed in a -NE' article in /anuary 200 & 0n "er de#ense! Patricia $unn "olds t"at pre-texting is a generally unlaw#ul undertaking except w"en involving #inancial institutions& 1sked by -NE' reporter 'om 2ra3it! -ali#ornia 1ttorney *eneral 4ill 5ockyer w"ose o##ice was investigating HP6 use o# 7pretexting6 in its leak probe mentioned t"at t"ere was no speci#ic statute under -ali#ornia law to address in respect to 7pretexting6 but t"ere are two statutes about identity t"e#t and computer "ackers )2ra3it! September 200 ,& 1ccordingly! it is concluded t"at t"ere was no speci#ic statute under -ali#ornia law pro"ibiting obtaining p"one records o# individuals t"roug" #alse pretence& 8tilitarian et"ics 8tilitarianism! #ormulated by /eremy 4ent"am and restructured by /o"n-Stuart 9ill! is an et"ical t"eory w"ic" believes t"at t"e moral wort" o# an action is in its conse(uences rat"er t"an motives& '"e concept o# utilitarianism %usti#ies a positive or negative action in terms t"e greater good w"ic" t"at particular action may bring to all t"e persons a##ected by it including t"e person per#orming t"e action& 1ccording to t"is approac" t"e decision o# Patricia $unn to breac" t"e privacy becomes t"e best alternative in cases w"ere t"e #reedom o# privacy o##ered seem to compromise t"e mission! goals and ob%ectives o# a company and considering t"e very in#luential board members& '"e action is consider morally wort" because it brings utility to t"e company by stopping t"e publication o# intimate and long-term company strategies w"ic" compromise business6s pro#itability and better per#ormance! t"e ot"er stake"olders are not a##ected by t"e action i# t"ey are not aware o# it and also "elps Patricia $unn per#orming "er %ob& '"e ma%or di##iculty wit" t"e application o# t"e utilitarian model is t"at #ails to take into consideration moral issues related to rig"ts and %ustice& 0n t"is case t"e model does not cover t"e rig"t o# t"e board members at privacy despite t"e #act t"at t"e in#ormation #rom pretexting "as not been used in any negative way! but it "as only been used to identi#y t"e culprit&

2antian et"ics 2ant6s :duty et"ics; are deontological meaning t"at t"e moral wort" o# an action is associated wit" t"e motives and intention be"ind it as oppose to utilitarian conse(uentialism! w"ic" seeks t"e moral wort" o# "uman actions in t"eir good or bad e##ects& 8nder a deontological perspective o# et"ics! Patricia $unn s"ould be expected to respect t"e rig"ts to privacy o# t"e board members and %ournalists& $espite t"e c"allenge and risk involved! $unn manages wit"in a s"orter time to ac"ieve w"at many ot"er -E<6s be#ore "im "ad #ailed to do-t"e identi#ication o# t"e in#ormer wit"in t"e company& Even i# t"e conse(uences o# "er actions produce a good #or t"e ma%ority o# people a##ected! t"e tactics employed by t"e investigators o# t"e case are not rig"t since t"e privacy o# t"e directors was in#ringed& 1lso according to t"e #irst #ormulation o# t"e 2antian categorical imperative! t"e action can not be made a universal law because t"e one per#orming suc" action-Patricia $unn- would not want to be t"e recipient o# suc" an action& 1ristotle6s virtue et"ics 0n comparison wit" 8tilitarianism and 2antian6s et"ics w"ic" are action-based approac"es! t"e 1ristotle6s virtue et"ics #ocuses on t"e individual per#orming t"e action being an agent-based t"eory& 1ccording to t"is principle impersonating some one else in order to obtain private in#ormation does not comply wit" t"e key concept o# virtue seen as "onesty and integrity& -orporate social responsibility 0n =>+> -aroll elaborated t"e pyramid o# corporate social responsibility w"ic" was #ormed by ? categories o# social responsibilities@ economic! legal! et"ical and p"ilantropical& 1ccording to t"e economic layer o# t"e pyramid a business is #irst responsible o# being pro#itable& 0n t"is note t"e decision o# t"e HP 4oard o# $irectors to "ire a private investigator in order to discover t"e person w"o was leaking in#ormation t"at not only put t"e company.s reputation at risk! but it was also putting t"e company.s #inancial stability at risk by creating lower trade values #or t"eir stock )/ennings! 20=0, was in accordance& 0n t"e second stage t"e company s"ould operate not only according to t"e pro#it incentive but at t"e same time business is expected to comply wit" t"e laws and regulations in e##ect at a certain moment& 1s a result! alt"oug" HP claims t"at pretexting met"od was Anot generally unlaw#ulA at t"e time o# investigation! it cannot be said t"at t"e HP6s contractor was wit"in t"e bounds o# t"e law since! at t"e least! t"ere was some general civil pro"ibitions in place& '"e Et"ical layer is construct by t"ose activities and practices t"at are expected or pro"ibited by consumers! employees! s"are"olders! and t"e community in general even t"oug" t"ey are not codi#ied into law& 1ccording to t"is t"e HP company s"ould take into consideration "ow t"e use o# deceptive practices! legal or illegal! would be perceived by HP employees! stake"olders and s"are"olders&

'"e p"ilantropical responsibilities are t"ose corporate actions t"at are voluntary "aving as a purpose t"e improvement o# certain groups o# people& '"is includes actively engaging in acts or programs to promote "uman wel#are or goodwill&

4ibliograp"y

Marianne M. Jennings! Business Ethics: Case Studies and Selected Readings, t" Edition 4usiness et"ics lectures