Hewlett-Packard Company (HP) monitored the phones of its directors to find the sources of leaks of company information to the media.

When the government learned of the monitoring, criminal charges were brought against HP’s officers. Mark Hurd, HP’s chief executive officer, was found free of wrongdoing and kept his position. In congressional testimony, press releases, and investor briefings, Hurd proclaimed HP’s integrity and its intent to enforce violations of its corporate code of ethics, the Standards of Business Conduct (SBC). Meanwhile, an investigation by HP’s board revealed that Hurd had lied about his personal relationship with an HP contractor and falsified related expense reports. Hurd resigned, causing the price of HP stock to drop. Did Hurd commit an ethical violation against HP and its shareholders? Discuss.