Hp Case Analysis

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Case Study on Corporate Governance - HEWLETT PACKARD HP, the Palo Alto technology giant was back in the spotlight in 2005 with the second replacement of a board chairperson in two years - and because of questionable methods, it has used to locate the source of leaks on board matters to the Wall Street Journal and CNET. Public knowledge of the origins of HP's corporate governance problems can be traced back to HP's controversial merger with Compaq, a merger that was pushed through by Carly Fiorina over the objections of Walter Hewlett, son of co-founder William Hewlett. The merger was announced on September 3, 2001. The turn of the century marked the start of a tumultuous time for HP's board of directors. The first six years of the new millennium saw continuous board infighting, the summary firing of Carly Fiorina, Chairwoman and CEO from July 1999 to February 2005, leaks of board discussions to the press, the use of illegal monitoring tactics and pretexting of suspected board members, a senate hearing, felony (criminal) charges levied against Patricia Dunn, the Chairwoman who followed Fiorina, HP executives and contractors, and an insider trading suit against Mark Hurd, Chairman and CEO. While the worst of the scandal appears to be behind HP, the episode is an object lesson on the corporate governance woes that can beset an organization. Background on The HP Way & its Demise William Hewlett and Dave Packard instituted a management philosophy called the HP Way. It included a value system that set the standard for ethical behavior in Silicon Valley and beyond - a set of values that included integrity, respect for individuals, teamwork, employee retention, innovation, contribution to customers and the community. While the founders stated that profitability was a primary objective they also placed valuing the people & their accountability. The result of

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