Problems and Recommendations of PSU Trustees strategies to address the child molestation crisis Custom Essay

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This exercise addresses the crisis experienced by Pennsylvania State University (PSU), a not-for-profit corporation, following the disturbing criminal allegations against a former PSU football coach involving the sexual abuse of children. Please note The New York Times timeline of relevant accusations at http://www.nytimes.com/interactive/2011/11/11/sports/ncaafootball/sandusky.html?scp=1&sq=penn%20state%20scandal&st=cse
You are asked to examine how the Trustees (Directors) of PSU responded to the crisis as it unfolded. Subsequent investigations, both by law enforcement and firms retained by the Trustees, reveled further information. But, for this exercise, you may consider only the information available to the Trustees before December 1, 2011.
As additional background, the PSA football program has been among the most admired in the country, as was its Head Coach of 46 years, the late Joe Paterno. Paterno was then considered the only Division 1 (the most competitive college athletic level) head coach to win more than 400 games, including five undefeated seasons. PSUs football success was accompanied by high graduation rates among the players and an absence of scandal. (PSUs intercollegiate athletic conduct had placed it in rare company: At that time, only three other Division 1 football programs had never been sanctioned by the NCAA, intercollegiate athletics governing body.) PSUs football program reaped it substantial financial and reputational benefits. Coach Paterno took on legendary status. In 2001, for example, a seven-foot tall, 900 pound statue of Paterno was erected outside the PSU football stadium.
The alleged abuser, Jerry Sandusky, retired from employment at PSU in 1999, but was contractually permitted continued access to PSUs athletic facilities. Sandusky was arrested on November 5, 2011. In addition, on November 5, 2011 two current PSU senior officials, Tim Curley, the universitys athletic director, and Gary Schultz, the university’s senior vice president for finance and business (who was responsible for the PSU security force), were criminally charged with perjury (lying to the grand jury investigating the allegations) and failing to report their knowledge of Sanduskys alleged child abuse to law enforcement.
Both Paterno and PSU President Graham Spanier testified at the grand jury investigation. (Earlier this month, Spanier was criminally charged with obstruction of justice. Paterno, who died in January, was not been charged with any crime.) Although grand jury proceedings are not public, word of the investigation leaked out to a local newspaper. A PSU trustee was later interviewed by Time magazine, as follows.
Q: Did you see the article in late March in the Harrisburg Patriot-News, where a reporter got ahold of a lot of grand jury details and pretty much laid out the Sandusky case?
A: I did see the reports in The Patriot-News.

Q: Was there any reaction to those reports?
A: Well, they were secret grand jury proceedings, so there wasnt much that could be done because those were all private grand jury proceedings.

Q: But they were publicly discussed in late March.
A: Correct.

Q: Was there any planning for a course of action in the event that the attorney general would go public with the investigation? Were there any discussions about preparing for the worst?
A: Not that I was a part of. I dont know if it was part of the discussion among [university President Graham] Spaniers leadership, but not that I was a part of.

On November 5, the day Sundusky was arrested, PSU President Spanier issued the following statement, apparently without the approval of the Board of Trustees. Some commentators claimed that the release did not express sufficient sympathy for the victims. The statement also permitted the inference that PSU has pre-judged the allegations: The Presidents statement included exculpatory claims by Curleys and Schultzs lawyers. The text of President Spaniers November 5 statement (and the statements by Curleys and Schultzs lawyers that Spanier appended to his own statement) follows.
The allegations about a former coach are troubling, and it is appropriate that they be investigated thoroughly. Protecting children requires the utmost vigilance. ??
With regard to the other presentments, I wish to say that Tim Curley and Gary Schultz have my unconditional support. I have known and worked daily with Tim and Gary for more than 16 years. I have complete confidence in how they have handled the allegations about a former University employee. ??
Tim Curley and Gary Schultz operate at the highest levels of honesty, integrity and compassion. I am confident the record will show that these charges are groundless and that they conducted themselves professionally and appropriately.
Graham Spanier

Penn State has heard from the attorneys representing both Tim Curley and Gary Schultz. They have released the following statements:
Attorney Tom Farrell:
"Gary Schultz is innocent of all charges. We believe in the legal system, and we believe it will vindicate him. We will fight these charges in court, and Gary Schultz will be proven innocent of all of them."
?Attorney Caroline Roberto:
"Tim Curley is innocent of all charges against him. We will vigorously challenge the charges in court, and we are confident he will be exonerated."
The following day, November 6, the PSU Board of Trustees announced that Curley was placed on administrative leave and that Schultz will retire. The Board also announced a task force to review PSUs policies relating to child protection.

Trustees announce 2 officials to step down while case is investigated
Monday, November 7, 2011

UNIVERSITY PARK, PA Following an executive session held Sunday night (Nov. 6), members of Penn States Board of Trustees and President Graham Spanier received a request from athletic director Tim Curley to be placed on administrative leave so he can devote the time needed to defend himself against recent allegations by the Pennsylvania Attorney General. Gary Schultz, interim senior vice president for finance and business, will step down so that he also can defend himself and return to retirement.
Both men have been charged with failure to report and perjury. Both deny any wrongdoing.
The board, along with the entire Penn State family, is shocked and saddened by the allegations involving former assistant coach Jerry Sandusky, said Steve Garban, chairman. Under no circumstances does the University tolerate behavior that would put children at risk, and we are deeply troubled.
Sandusky retired from the University in 1999.
Schultz, who served as senior vice president of finance and business and University treasurer from 1993 until his retirement in 2009, recently returned to Penn State in an interim capacity to help the University transition as it fills the position. The University has been interviewing candidates for the post and expects to fill the position in the coming weeks.
Spanier said that Senior Associate Athletic Director Mark Sherburne will serve as interim athletic director until Curleys legal situation is resolved.
The protection of children is of paramount importance, said Spanier. The University will take a number of actions moving forward to increase the safety and security within our facilities and make everyone aware of the protocols in place for handling these issues.
Garban announced the following steps:
1. The chair of the board will appoint a task force to engage external legal counsel to conduct an independent review of the Universitys policies and procedures related to the protection of children. This action is not intended to interfere with the ongoing judicial process;
2. Publicize the findings of the independent review;
3. Review with administrators police reporting protocols; and
4. Enhance educational programming around such topics.
Members of the Board of Trustees reinforced that Penn State is committed to honesty, integrity, and upholding the highest ideals, said Garban.
On November 8, the Board expressed sympathy for the abused children. It also announced the formation of a special investigatory committee and promised to make the committees report public. No mention was made of the task force announced the previous day. The Boards November 8 statement follows.

Statement by The Pennsylvania State University Board of Trustees
Tuesday, November 8, 2011

The Board of Trustees of The Pennsylvania State University is outraged by the horrifying details contained in the Grand Jury Report. As parents, alumni and members of the Penn State Community, our hearts go out to all of those impacted by these terrible events, especially the tragedies involving children and their families. We cannot begin to express the combination of sorrow and anger that we feel about the allegations surrounding Jerry Sandusky. We hear those of you who feel betrayed and we want to assure all of you that the Board will take swift, decisive action.

At its regular meeting on Friday, November 11, 2011, the Board will appoint a Special Committee, members of which are currently being identified, to undertake a full and complete investigation of the circumstances that gave rise to the Grand Jury Report. This Special Committee will be commissioned to determine what failures occurred, who is responsible and what measures are necessary to insure that this never happens at our University again and that those responsible are held fully accountable. The Special Committee will have whatever resources are necessary to thoroughly fulfill its charge, including independent counsel and investigative teams, and there will be no restrictions placed on its scope or activities. Upon the completion of this investigation, a complete report will be presented at a future public session of the Board of Trustees.

Penn State has always strived for honesty, integrity and the highest moral standards in all of its programs. We will not tolerate any violation of these principles. We educate over 95,000 students every year and we take this responsibility very seriously. We are dedicated to protecting those who are placed in our care. We promise you that we are committed to restoring public trust in the University.
Rumors spread that Coach Paterno will lose his position. Presumably seeking to end his legendary career with dignity, he issued a statement apparently uncoordinated with the Board of Trustees or the interim president announcing his end-of-season retirement. Paternos statement advised the Trustees not to spend a single minute on his status. In effect, he was asking that he remain head coach for just two remaining games.
Joe Paterno’s Retirement Statement
STATE COLLEGE, Pa., Nov. 9, 2011 — I am absolutely devastated by the developments in this case. I grieve for the children and their families, and I pray for their comfort and relief.
I have come to work every day for the last 61 years with one clear goal in mind: To serve the best interests of this university and the young men who have been entrusted to my care. I have the same goal today.
That’s why I have decided to announce my retirement effective at the end of this season. At this moment the Board of Trustees should not spend a single minute discussing my status. They have far more important matters to address. I want to make this as easy for them as I possibly can.
This is a tragedy. It is one of the great sorrows of my life. With the benefit of hindsight, I wish I had done more.
My goals now are to keep my commitments to my players and staff and finish the season with dignity and determination. And then I will spend the rest of my life doing everything I can to help this University.
The Trustees, however, summarily fired Paterno without any statement of gratitude for his 46 years of service to PSU. He was not permitted to coach the seasons two remaining games. More than one thousand PSU students took to the streets to protest Paternos firing. President Spanier was also summarily fired.
Board of Trustees announces leadership changes at Penn State
Wednesday, November 9, 2011

The Pennsylvania State University Board of Trustees and Graham Spanier have decided that, effective immediately, Dr. Spanier is no longer president of the University. Additionally, the board determined that it is in the best interest of the University for Joe Paterno to no longer serve as head football coach, effective immediately.
The board has named Dr. Rodney A. Erickson, executive vice president and provost, as the interim president of the University. Tom Bradley, assistant coach, has been named interim head football coach.

On November 11, a prominent CEO was named as chair of the special investigatory committee, which will include the participation of non-Trustees representing a number of PSU constituencies.

Frazier to chair special investigation committee
Friday, November 11, 2011
UNIVERSITY PARK, Pa. — The Board of Trustees today (Nov. 11) announced that Trustee Ken Frazier will serve as chair of the special investigation committee they announced on Nov. 8. Education Secretary and Trustee Ron Tomalis will serve as the vice chair. ??The committee will undertake a full and complete investigation of the circumstances that gave rise to the grand jury report.
The committee will be commissioned to determine what failures occurred, who is responsible and what measures are necessary to ensure that this never happens again. ??
"There will be full accountability for those found responsible," said Steve Garban, chair of the board. "All resources will be made available for the committee to fulfill its charge and there will be no restrictions placed on its scope or activities."??
Garban said when the investigation is complete, a full report will be given to the board at one of its regular meetings.??
"Trustee Frazier has agreed to chair this important committee in this endeavor," Garban said. "He’s experienced, seasoned and will provide the leadership necessary to prevail."??
Garban said Frazier and Tomalis will hold an organizational meeting this afternoon (Nov. 11). The complete committee membership will be determined and announced in the near future and is expected to be composed of a majority of Board of Trustee members with representatives from each of the board’s constituencies as well as representatives of the Penn State community including faculty, students and alumni.??
"As all of you are keenly aware, the University and this board have many challenges and issues that we will face over the coming days, months and perhaps years. I want to reiterate our support for President Erickson and the leadership team of the University as we move forward," Garban said. "Penn State has always strived for honesty, integrity and the highest moral standards in all of its programs. We are dedicated to protecting those who are placed in our care. Collectively, we promise that we are committed to restoring public trust in the University."?
Frazier is president, chief executive officer and a member of the board of directors of Merck & Co. Inc. He was elected to the Board of Trustees as a business and industry trustee for a three-year term beginning July 1, 2009.??
By virtue of his position as Secretary of Education, Commonwealth of Pennsylvania, Tomalis serves as an ex officio member of the Board of Trustees.

In a message, interim President Erickson sought to raise campus morale and made promises to the PSU community.

A post-weekend message from President Rodney Erickson
Monday, November 14, 2011

Nov. 14, 2011 — This past week has tested the character and resilience of the Penn State community in ways we never could have imagined. Many of you shared my shock and surprise as the reports unfolded. Yet, after this past weekend, I just want to take a moment to tell all of you how proud I am. Our students and athletes, in particular, demonstrated the best of what it means to be a Penn Stater.
On Friday night, our students organized a candlelight vigil for the victims of abuse, and thousands came to express their concern and resolve. It was a meaningful and deeply moving way to show support.
At the Penn State-Nebraska football game on Saturday, tens of thousands of fans supported the Blue Out, a solemn moment of silence, as well as many other efforts to raise awareness and money for this very serious issue.
On the field, the football players demonstrated a level of maturity and determination that was an inspiration. The athletes from both teams came together at midfield in unity, respect and prayer for the victims. Then they played their hearts out. It was remarkable in so many ways.
Thank you for coming together as a community.
Today, we are back to class and the business of running this University. I urge you to refocus on your educational goals and remain mindful of the five promises I have made to the Penn State community as we move forward. Collectively, we need to show the nation and world that Penn State cares, and that Penn State is a community of individuals committed to moving forward with a shared sense of purpose.
If you have not yet seen the five promises, I will share them below.
Again, thank you for your support and the kind words I have heard from so many people. It gives me the confidence to know that together we are moving in the right direction.

My Promise to the Penn State Community
1) I will reinforce to the entire Penn State community the moral imperative of doing the right thing — the first time, every time.
— We will revisit all standards, policies and programs to ensure they meet not only the law, but Penn State�s standard. To oversee this effort, I will appoint an ethics officer who will report directly to me.
— I ask for the support of the entire Penn State community to work together to reorient our culture. Never again should anyone at Penn State feel scared to do the right thing. My door will always be open.
2) As I lead by example, I will expect no less of others.
— I will ensure proper governance and oversight exists across the entire University, including Intercollegiate Athletics.
3) Penn State is committed to transparency to the fullest extent possible given the ongoing investigations.
— I encourage dialogue with students, faculty, alumni and other members of the Penn State community.
4) We will be respectful and sensitive to the victims and their families. We will seek appropriate ways to foster healing and raise broader awareness of the issue of sexual abuse.
5) My administration will provide whatever resources, access and information are needed to support the special committees investigation. I pledge to take immediate action based on its findings.
Rodney Erickson

On November 21, the special investigative committee retained a former FBI director to lead the investigation.
Former FBI director Freeh to conduct independent investigation
Monday, November 21, 2011

Freeh to lead impartial and comprehensive assessment of University’s actions, governance, protocols, decision-making and oversight?
People with relevant information encouraged to call newly-established hotline?
Findings and recommendations to be made public
PHILADELPHIA, Pa. The special committee of The Pennsylvania State University Board of Trustees announced today (Nov. 21) that it has engaged former FBI Director and federal judge Louis J. Freeh to lead an independent investigative review into all aspects of the Universitys actions with regard to the allegations of child abuse involving a former Penn State employee contained in the recent Grand Jury report. The special committee and Freeh said that the findings and recommendations of this work, when completed, will be made available to the public. No specific timeframe has been set for completion of the review.

Ken Frazier, chairman of the special committee, said, Each of us in the Penn State community read the Grand Jury report with the same sense of dismay and anger that has stunned and shocked our entire nation and the wider world. We are especially heartbroken that some of these unspeakable acts could have occurred on the campus of Penn State University. We care deeply for the victims and their families whose lives have been tragically affected. The board also understands how difficult this has been for the students, faculty, staff and others who are dealing with the shock and revulsion at what happened.

The entire Board of Trustees is intent on taking all steps necessary to ensure that our institution never again has to ask whether it did the right thing, or whether or not it could have done more. We are committed to leaving no stone unturned to get to the bottom of what happened, who knew what when, and what changes we must make to ensure this doesnt happen again. Therefore, we are pleased that Judge Freeh has agreed to lead a thorough and independent investigative review of this matter, concluded Frazier.

Ron Tomalis, vice-chairman of the special committee, said, Judge Freeh is a man of complete integrity, independence and objectivity. The scope of his work will be expansive, and he is free to take his work to whatever conclusions he deems appropriate. No one at Penn State will be exempt from this review, including the Board of Trustees itself.

Freeh commented, I am committed to leading the investigation into this tragic and distressing series of events and making the appropriate recommendations. Our investigation will look carefully at the governance, protocols, decision-making and oversight within the University. We will cooperate fully with the law enforcement authorities, will defer to them, and will not impede their work in any way.

I welcome the unequivocal support the special committee and the entire board have offered for full access and cooperation. They have directed me to carry out this investigation with complete independence, and take it wherever it may lead. I will proceed with all deliberate speed, but there are no limits on the duration of the investigation. We will work expeditiously as well as thoroughly.

Freeh also announced that a confidential, toll-free hotline has been established for anyone with information that could assist in this investigation. The hotline number is 855-290-3382, which will be active starting at 5 p.m. EST today (Nov. 21). Those who wish to communicate with the investigation by email may do so at the following email address: PSUhelp@freehgroup.com.

The special committee is comprised of University Trustees, students, faculty and other individuals affiliated with the Penn State community, including:

Ken Frazier, chairman; chief executive officer and president of Merck;

Ron Tomalis, vice-chair; secretary of the Pennsylvania Department of Education;

Mark Dambly, president of Pennrose Properties LLC;

Jesse Arnelle, attorney at law;

Keith Eckel, sole proprietor and president of Fred W. Eckel Sons Farms, and board chairman, Nationwide Insurance ;

Karen Peetz, vice chairman, chief executive officer, Financial Markets and Treasury Services, Bank of New York Mellon;

Dan Hagen, chair, University Faculty Senate, professor of animal science, College of Agricultural Sciences; and

Rodney Hughes, doctoral student, higher education, Penn State University.

In addition, the Board of Trustees has appointed Guion Bluford Jr. as a member of the special committee. Bluford is an eminent engineer, retired colonel of the U.S. Air Force and former NASA astronaut who participated in four Space Shuttle missions between 1983 and 1992.

Freeh serves as senior managing partner of Freeh Sporkin & Sullivan LLP. He also is the founder and chairman of Freeh Group International Solutions, an affiliated investigative consultancy.

Freeh was born in Jersey City, N.J., and graduated Phi Beta Kappa from Rutgers University in 1971. He received his juris doctor (JD) degree from Rutgers School of Law in 1974 and his master of laws (LLM) in criminal law from New York University School of Law in 1984. Freeh joined the Federal Bureau of Investigation (FBI) as a special agent in 1975, working assignments in the New York field office and later transferring to Headquarters in Washington, D.C.

In 1981, he joined the U.S. Attorney’s Office for the Southern District of New York as an assistant United States attorney. Subsequently, he held positions there as chief of the Organized Crime Unit, deputy United States attorney, and associate United States attorney.

During this time, Freeh was the lead prosecutor in the "Pizza Connection" case, one of the largest and most complex investigations ever undertaken at the time by the U.S. government. The case involved an extensive drug-trafficking operation in the United States by Sicilian organized crime members. Following the investigation, Freeh served as the federal government’s principal courtroom attorney in the 14-month trial and won the conviction of 16 of 17 co-defendants. In 1990, he was appointed a special prosecutor by the attorney general to oversee the investigation into the mail-bomb murders of Federal Judge Robert Vance of Birmingham, Ala., and civil rights leader Robert Robinson of Savannah, Ga. This case became known as the VANPAC case. After extensive investigation, a suspect was apprehended, prosecuted and convicted.

In July 1991, former President George Bush appointed Freeh as U.S. District Court judge for the Southern District of New York. While serving in this position he was nominated to be the director of the FBI by President William Clinton on July 20, 1993. He was confirmed by the Senate and was sworn in as director on Sept. 1, 1993 where Freeh remained through June 2001.

Your Exercise #1 assignment
1. Do you agree or disagree with the PSU Trustees strategies to address the child molestation crisis? Why?
2. What, if anything, would you have suggested to the Trustees to improve their strategies (even if you generally agree with their approach)?

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