Hewlett-Packard With a passion on technological inventions, Bill Hewlett and Dave Packard together created a company that changed the face of technology.
Founded in 1939, Hewlett Packard (HP) introduces various inventions that captured consumers and major corporation interests. With operations worldwide, Hewlett Packard became successful generating more than $115 million in profits in 2008 alone (HP Corporate Information, 2010). Despite the company??™s accomplishments, unethical practices surfaced revealing the use of confidential e-mails and private phone records creating a public outrage. In 2006, Hewlett Packard appeared before Congress on criminal charges against numerous company officials including former Chairperson Patricia Dunn of unethical misconduct for unlawfully obtaining private phone records along with e-mails under false pretences in a form of pretexting. Pretexting is a controversial method of obtaining phone records and personal information under false pretences (Heritage Institute, 2007). The aforementioned allegations facing Hewlett Packard created conflict between board leaders and directors leaking sensitive information to journalists. ???The matter came to a head when the most sensitive details of discussions at a board retreat ended up on the front page of the Wall Street Journal on January 24, 2005??? (Heritage Institute, 2007, para.
2). Right after Hewlett-Packard had regained control from missteps over previous years, scandals involving its board chairperson and officials about questionable techniques threatens the future of the organization. Hewlett-Packard??™s chairperson Patricia Dunn replies to the accusations by submitting to the law yet the case was dismissed.HP upholds its leading position and success in its industry however, the lack of communication between board members and directors exists affecting leadership relationship. ???Overall, a perception of leadership is most often based on the leaders??™ communication abilities and opportunities. When employees are satisfied with the way in which their leaders communicate, the results can be significant??? (Hartman, 2005, p. 187).
Therefore, Hewlett-Packard leadership must outline management responsibilities and roles with corporate governance to improve communication. The current practices at McBride Financial Services are analogous to HP??™s unethical practices by operating its company lacking effective communication. ???Incentive plans often fail to achieve credibility because they are not explained adequately. Uncertainty creates doubt, and doubt undermines success??? (Chew & Gillan, 2005, p.
5). McBride Financial services must benchmark HP??™s collapse to comprehend the significance of unethical practices for company awareness before applying unlawful techniques in acquiring company information. In the case of McBride Financial Services, Hugh McBride does not permit his staff to manage the organization??™s stock options as well as instructing the staff to perform unethical activities when employing directors. Conversely, McBride Financial Services falls beneath the guiding principles of Sarbanes-Oxley Act. ???SOX mandated changes that will affect executive compensation, shareholder monitoring, and, particularly, board monitoring??? (Chew & Gillan, 2005, p. 8). Hugh McBride must initiate an effective corporate strategy to delegate several responsibilities for the staff to improve and strengthen the company??™s operations.
McBride Financial Services needs to apply some of HP??™s practices to educate its leaders by improving company??™s organizational goals and developing strong leadership skills to disseminate ethical decision-making process. Tyson FoodsFounded in 1935 with headquarters in Springdale, Arkansas, Tyson Foods was known as the world??™s largest processor of chicken, beef, and pork meat. Tyson Foods is also known as the second-largest food production company in the Fortune 500 (Tyson, 2010). Controversial problems arise concerning business operations for Tyson Foods questioning its relation with former President Bill Clinton, campaign involvement, contributions, and unsanitary plant conditions dangerous for workers. Don Tyson along with his family and the board of directors in 2008 entered a settlement about rising issues over problematic business practices. The allegations were about unethical behaviors among directors and officers in correlation with stock options including party transactions. As a result, the settlement agreement in this case ordered Tyson to pay $4.5 million to their largest shareholders that required enhancements to Tyson??™s corporate governance policies (Tyson, 2010).
Furthermore, Tyson Foods agreed not to involve in any unethical activity relating to party transactions without consent from Board members as well as hiring a consultant to assess the company??™s internal audit and control processes. The board of directors at Tyson Foods immediately worked on the terms of the settlement agreement in creating an effective corporate governance structure to approve related-party transactions. With much emphasis on the company??™s internal controls including corporate governance, the board planned to ensure the organization will support it stockholders and investors. To remain successful in its industry, Tyson must restructure its position including company commitment to strengthen and support its long-term objectives.
With the assistance of independent or impartial individuals, the company can implement appropriate changes to restructure shareholder trust and achieve company success. In addition, corporate governance actions taken include the implementation of an inclusive Code of Conduct along with Corporate Governance Principles. Furthermore, the board has appointed a non-management lead director and has changed director compensation to include a portion in Tyson Foods stock (Tyson, 2010).
References:Chew, D., Gillan, S., (2004). Corporate governance at the crossroads. (1e). New York: McGraw-Hill.
Tyson (2010). Retrieved on August 29, 2010 from http://ir.tyson.com/phoenix.zhtmlc=65476&p=irol-govHighlightsHartman, P.
(2005). Perspectives in Business Ethics (3e). New York: McGraw-Hill.Heritage Institute (2007). Hewlett Packards Corporate Governance Woes. Retrieved on August 28, 2010 from http://heritageinstitute.
com/governance/hp/woes3.htmHP (2010). HP Corporate Information. Retrieved on October 21, 2010 from http://www8.hp.com/us/en/hp-information/index.html