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HBR CASE S TUDY AND C OMMENTARY How should Why Didn’t We Know? Galvatrens strengthen its system for by Ralph Hasson uncovering • misconduct—and what roles should the board and management play? Four commentators offer expert advice. Reprint R0704A A whistle-blower’s lawsuit alerts Galvatrens to deep flaws in its system for uncovering misconduct. How should management and the board respond? HBR CASE S TUDY Why Didn’t We Know? by Ralph Hasson . D E It was 9:30 in the evening of what had been a ing the past four weeks. The plaintiff was Mike V R E S very long Friday when the phone rang in Chip Fields, who had left Galvatrens three weeks ear- E R S Brownlee’s home study. On the line was Arch lier. He claimed that he’d come across a plan T H G I Carter, the lead director of Galvatrens, the devised by Greg Wilson, another divisional sales R L L Houston-based consumer products company manager. According to Mike, Greg had pro- A . N O that Chip had led as chairman and C