The Patricia Dunn Case and Ethics and HP - Essay Example

A Brief History of HP HP, the computer technology giant, was founded in a Palo Alto garage, by two Stanford Graduates Bill Hewlett and Dave Packard on 1st January, 1939. It started with manufacturing of audio oscillator. The company started with an initial capital of $538. Over the next few decades the company grew strength to strength increasing the range of its products. HP’s first computer was introduced in 1966. In 1973, HP became the first company in the world to introduce flexi-timings. HP became a major manufacturer of computers in 1980. The same year it marked its entry into the laser and inkjet printer market. HP surpassed $100 billion in revenues in 2007 thus becoming the first technology company in the world to do so. Identification and evaluate of ethical dilemmas within the organisation. HP, the world leader in computer hardware technology, printers is also at forefront in propagating ethical business practices. The Business Ethics of HP are succinctly summed up in the following words of its Chairman Michael Hurd. “Winning in the market is not important; it is how you get those results. Ethics and compliance is fundamental part of a company’s work culture. Ethical leadership is about each individual’s leadership and actions with others. Just as we have responsibility to our customers, we have a responsibility to ourselves. The standards provide clarity and guidance on how HP expects all employees to operate on a daily basis. (Hurd).” The employees are encouraged to develop a sense of fairness, justice and to adopt right course on the basis of deontological principle—a result is good only as long as it has been attained through good action. “The word deontology derives from the Greek words for duty (deon) and science (or study) of (logos). (stanford.edu, 2007).” Michael Hurd sums up the Deontological ethics as the core of business principles and values of HP in the following words, “While working for the best interests of HP, you have a duty to be ethical and lawful in your dealings with customers, channel partners, and competitors, as well as with your HP colleagues.” The Article 2.1 of Standard Business Code (SBC) outlines the deontological ideal in the HP’s working. On further readings of the Standard Code of Business Conduct, The Global Citizenship Report, Compliance and Ethics Code, we find that HP ethics strictly are non-Utilitarian (of achieving success at any cost), partly Kantian but fully deontological. The Global Citizenship model of HP holds each action of an individual accountable regardless of the country he operates in, and the position he is placed at, in the company. The Patricia Dunn Case and Ethics The spying episode that of 2005 that ultimately led to the resignation of Patricia Dunn from the Chairmanship was a ‘utilitarian act’. In here the Chairman had sought some information in the interests of the company by forsaking the ideal deontological right moral action. As it came to be noted that the company’s confidential information was being made public, Patricia Dunn in April 2005, instructed Ronald DeLia with investigation. DeLia informed Dunn that as a part of investigation, some phone records had to be obtained whereupon Dunn gave the home, office, and mobile phone numbers of HPs board members to him. DeLia contacted Florida-based Action Research Group (ARG), where Matthew Depante (Depante) was a manager, to get the telephone records. It was found that George Keyworth had leaked the information. But when this information was shared with the Board, the very means employed by Dunn to investigate were questioned. Since the company holds the moral action as supreme the sum of ‘individual acts’ pool together to make HP a successful organisation. As a part of its endeavour to and increase accountability and transparency and justify the upward spiral of profits, HP, is also making efforts to improve environmental and social conditions in its suppliers located across the world. No matter how moral the consequences can be at a theoretical or rational level, the choice of certain procedures, acts is forbidden as according to the Deontological principle. On comparative analysis we find that the employees and channel partners of HP can be studied deontological agents who conform to norms under any conditions. The second principle of good corporate governance is that the values that govern the board room should be no different than the values that guide the shop floor.( Fiorina, 2000). As part of its commitment to the environment, the company achieved the target of using 1 billion pounds (450,000 metric tonnes) of electronic products and supplies by the end of 2007. The well entrenched deontological ethics have permeated the company far enough to impress the stakeholders that it didn’t have any effect on its stock prices. "There seems to be a fundamental disconnect between the severity of the charges for the people who have been indicted and what the (financial) market thinks about this, the market seems to be shrugging off all this stuff.(Charles King quoted by ICMR, 3)." The General Policy (3.1) calls for customer relationship service based on fair deal, truthfulness and lawfulness. The Global Citizenship policy of HP makes a commitment to uphold its values and ethics in all the countries it operates in areas including ethics, environment, labour policies social and environmental policies. HP believes in realisation of its profit enhancement without compromising on the rules of ideal conduct. In order to achieve this company has comprehensively delineated the ideal behaviour in its Standards of Business Conduct. Articles 1 to 10 covering such broad spectrum of activities like use of HP Standards, doing Business, dealing with Competitors, Protection and Safeguarding HP’s information helps the employees and all other stakeholders to not to conduct themselves ideally in business but also helps them solve most of the moral dilemma. Some of the ethical dilemmas have been resolved thus: no employee will suffer adverse action for honestly raising an ethical or legal concern, to abide HP contracting principles when dealing with HP customers, to not to violate competition and anti-trust principles, to not accept gifts above that of a nominal value, to refer HP Global Trade and HP Legal in case of confusion on policy matters, and to abide by all international and local laws when dealing with corporate or public sector customers and to protect HP confidential information. Evaluate possible ways in which the dilemmas can be managed and resolved. HP Standards of Business Conduct is the guiding document for guiding an individual about how law and ethics governing the way HP does business. The code is applicable to the employees, channel partners, HP finance and accounting standards. There is an emphasis of individual authority. Waivers can be granted in case of failure to comply with standards but it will be promptly declared to the share holders. The Open Door Policy stands for whistle blowing and guarantees immunity to the person who reports misconduct. Even while working for the best interests of HP, the staff needs to be lawful in dealings with customers, channel partners, suppliers and other business partners as well as with HP competitors. “Even for items of nominal value, you should consider whether the frequency and timings of gifts may create any impropriety. Acceptance of gifts above a nominal value need to be turned in to the department. Anti-bribery should be reported to US Foreign Corrupt Practices Act (USFCPA). HP Global Trade is to be consulted in case of a dilemma whether your company has special controls to comply with them. Customer relationships are to be based on fairness and truth. Commenting on company wide ethical conduct, Carly Fiorina, the former Chairman of HP says that the first principle of good corporate governance is not the one that that is not just driven but that reflects the corporate culture (Fiorina).” In wake of the Patricia Dunn case, HP formed the Compliance and Ethics Committee with cross functional interface with Global SBC team. The role of Chief Privacy Officer to look into matters related to privacy, data protection and ethics has been enhanced. HP believes in propagation of an ethical culture, for mitigation of ethical risk and shares the information with employees, managers, shareholders and external interest groups—in a comprehensible manner (Harned). HP Legal and HP Global Trade, The Compliance and Ethics Committee are the guideposts that can be consulted in case of a dilemma. The most efficacious system developed by HP to solve the day to day ethical dilemmas is the Open Door Policy. Employees are encouraged to share their views on particular matters with colleagues and managers. Managers are responsible for the implementation of the policy. HP promotes trust, mutual respect and dignity in its diverse workforce that operates in markets, workplaces and communities all across the world. Conclusion: HP has evolved its Standards of Business Conduct through empirical means. The company’s procedures, reporting system, code of conduct have evolved over 70 years of its existence. But behind these practicalities stand the theoretical conception of Deontological ethics. The Patricia Dunn case was much publicised scandal that truly rattled the conscience of the company and the entire corporate world. The coming generations of employees, managers, and Directors may always consider it an ultimate failure of Utilitarianism and triumph of Deontological principle in a dilemma. References: 1. www.Hp.com, “The HP Website” Accessed March 6th, 2008, http://www.hp.com/hpinfo/ 2. Business Ethics and Governance Issues at HP: The Pretexting Controversy (2007), “The ICMR Website” Accessed March 6th, 2008 http://www.hp.com/hpinfo/abouthp/histnfacts/timeline/hist_90s.html 3. Deontological Ethics (2007) www. http://plato.stanford.edu, “The Stanford Philosophy Website” Accessed http://www.hp.com/hpinfo/abouthp/histnfacts/timeline/hist_90s.html March 6th 2008-04-07 Read More