Thursday, September 14, 2006

How not to deal with leaks


If the leaks were bad, the methods of plugging them were worse.

That's the lesson in Patricia Dunn's resignation as chairwoman of Hewlett-Packard's board.

"While leaks are problematic, investigations into leaks create far more problems, and they should be avoided," says Charles Elson, a professor at the University of Delaware and a prominent corporate governance expert.

Dunn said Monday she will step down in January, after a tumultuous week of fallout from an investigation she authorized into boardroom leaks at HP.

The methods used by investigators involved lying to gain access to the private phone records of board members and news reporters. As the scandal emerged, Dunn tried to justify the leak hunt, if not its methods, by saying board confidentiality was paramount.

See full Article.