Leaked Mark Hurd memo promotes "ethics" at HP

"In perhaps an attempt to distance himself from its actions, Mr Hurd is careful to make it clear that he is speaking "as the CEO of Hewlett-Packard, not on behalf of the HP board". Nevertheless, it is equally clear that he has a seat on that selfsame board of directors, and bears personal (albeit shared) responsibility for its past and future actions.

"The only director who has been proven to have any sense of ethics is Tom Perkins, who resigned in protest over Ms Dunn's actions.

"Mr Hurd, notwithstanding your belief "that this has nothing to do with the strategy or operations of Hewlett-Packard", a company's Board of Directors can hardly be thought of as separate from the company. You might as well claim that your head is not part of your body.

"Unless the board removes Ms Dunn, HP will no longer be able to claim "We conduct our business with uncompromising integrity" with any credibility. Indeed, failing to remove Ms Dunn sends the clear message that statements about "business ethics" are just platitudes. This remains true even though it is highly likely Ms Dunn will manage to cloak herself in sufficient "plausible deniability" to avoid criminal charges.

"Mark, both HP's and your personal credibility and ethics are on the line. Prove that Tom Perkins is not the only one with a sense of ethics and demand the removal of Patricia Dunn. And while you're about it, apologize to Mr Perkins and invite him to rescind his resignation and reclaim his seat."

From: CEO, Mark Hurd@hp.com
Sent: Friday, September 08, 2006 7:00 PM
Subject: HP Board

To: All HP Employees
From: Mark Hurd
Re: HP Board

In addition to the text transcript below, employees may access a video replay of Mark's message. Go to hpNOW for more information: < http://hpnow.corp.hp.com/news/06q4/060908m1/index.htm >

Hi, before I begin, I want to be clear that I am speaking to you today as the CEO of Hewlett-Packard, not on behalf of the HP board.

I know that many of you have read the media coverage and speculation regarding the recent actions of the HP board. My belief is that this has nothing to do with the strategy or operations of Hewlett-Packard.

Unfortunately, there has been a long history of leaking company information within the HP board that clearly needs to be resolved, and it will be resolved. The HP Standards of Business Conduct are our foundation of ethical leadership and encompass the basic principles that govern our ethical and legal obligations to HP.

The leaking of company confidential information violates our Standards of Business Conduct which apply to all employees and board members.

Clearly, things have happened here that are unacceptable. But we will not react to speculation. Instead, we will continue to gather and review all the relevant facts. I can assure you we will get to the bottom of this and take appropriate action.

HP's values are at the core of this company. These have not changed and will not change. HP's shared values are a set of deeply held beliefs that govern and guide our behavior:

• * We are passionate about customers;
• * We have trust and respect for individuals;
• * We perform at a high level of achievement and contribution;
• * We act with speed and agility;
• * We deliver meaningful innovation;
• * We achieve our results through teamwork; and
• * We conduct our business with uncompromising integrity.

The company has made tremendous progress and I thank you again for that. I have told you several times that building a successful company means we will have our ups and downs, and issues will come up. We are dealing with an issue now. I am resolved that we will work through this and take the necessary action.

I compliment you for focusing on our business priorities and serving our customers. I intend to do the same. I ask for your confidence that we will do what is needed and continue to move forward on our path to build the world's leading technology company.

We have the right strategy, our performance is improving and I believe that's due to the great performance of our people. We want to stay focused as a group as we continue to pursue our objectives.

Thank you.

Mark µ

* The HP board yakked to each other for several hours yesterday. It issued a statement saying it will yak again later this afternoon, and then release a further statement, presumably longer than this one liner.