HP corporate spying and pretexting

Patricia Dunn, HP chairwoman at the time of the pretexting scandal

In 2006, CNET news published exclusive details of HP’s long-term strategy, information leaked directly from the boardroom. Patricia Dunn, HP chairwoman at the time, hired spies to uncover the source of the leak. The problem was that these spies used pretexting, an illegal and unethical way of obtaining personal information about another individual.

The reason for the information leakage was mainly employee deviance, as they were voluntary actions that violated established norms within HP. It was found that Jay Keyworth, a long-service board member, was the source of the leak. He was forced to resign, which caused another board member, Tom Perkins, to become a whistleblower and reveal all of the boardroom’s internal problems.

Dunn’s decision of finding the responsible person was certainly part of her job as a chairwoman. However, the way she did so was unethical. Her utilitarianistic reasoning showed that she thought that the end justified the means. This unethical decision caused a further organizational crisis, which resulted in several people losing their jobs. HP could not handle the post-crisis media coverage and showed a poor organizational culture.

Overall, HP’s crisis is a clear example of how lack of ethics, misunderstanding of organizational norms, employee deviance and a poor organizational culture can lead to a major crisis.

Further reading: HP’s pretexting scandal FAQ