ETHICS CASE STUDY HEWLETTPACKARD SPY SCANDAL A CASE

ETHICS CASE STUDY: HEWLETT-PACKARD SPY SCANDAL A CASE RELATED TO CORPORATE SPY WORK

CORPORATE SPY WORK �Dates back to 6 th century. �Unethical and illegal method of 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.

CORPORATE SPY WORK �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.

COMPANY PROFILE �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

COMPANY PROFILE �Products: Computer Monitors, Digital Cameras, Indigo Digital Press, Networking, Personal Computers and Laptops, Personal Digital Assistants, Printers, Scanners, Servers, Storage Televisions.

COMPANY PROFILE �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)

REAL STORY…… �PERSONS INVOLVED � 1. Patricia Dunn, Chairwoman, HP. � 2. George Keyworth, Board Member. � 3. Ann Baskins, Head Attorney.

REAL STORY…… �BACKGROUND �HP found that some of its highly confidential data regarding HP’s long term strategy leaked during January, 2006.

REAL STORY…… �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. ”

REAL STORY…… �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.

REAL STORY…… �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.

REAL STORY…… � 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.

REAL STORY…… � UNETHICAL METHODS USED……. � Lies � Fraud � Trapping of private telephone lines � Misrepresentation

REAL STORY…… �RIGHTS VIOLATED…… �Right to privacy. �Right to free speech. �Right to private property. �Right to confidentiality.

HOW TO SAVE DATA IN IT COMPANIES? � 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

HOW TO SAVE DATA IN IT COMPANIES? � 4. Protect against data deletion and data loss � 5. Protection from data tampering � 6. Regular auditing, random and regular monitoring

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