Chapter MC, Problem 21.3DQ

Summary Introduction

Case summary:

Company H is one of the largest technology companies in the world. Started in 2010, company H is one of the largest with revenue of $127 billion in 2011. Company H is a leading producer of desktop computers, laptops, printers and computer hardware. The case explains the problems in company H board of directors.

The problem began when the company started to violate the code of ethics after the death of its founder, Person H. The problem grew when the company’s confidential information was leaked in an anonymous article. Person D, CEO of company H, started secret surveillance on board of member and found the person who leaked the information. This issue led to the outbreak of a bigger problem which led to the resignation of one of the members of the board and termination of person D.

The company then selected Person H as the new CEO under whom the company grew financially strong but Person H was filed a lawsuit by Person JF, who worked as a hostess at company H sponsored events which made him resign. Next, the company appointed Person LA as CEO who suggested focussing on enterprise software solutions business. The business constituted $25 billion and the hardware business grew to 40 percent of HP’s total revenue.

The board members fell victim to group thinking as Person RL, the board chair, supported Person AP and more problem aroused when an outside firm proposed Person AP as CEO which later led to step down of Person RL as chair of company H board. Person MW, led the company as CEO and divided the business into hardware and another enterprise which performed decently in 2017.

To recommend: The board as a corporate governance consultant or a business ethics consultant and steps to implement the recommendations.