Abstract
The purpose of this case study analysis is to understand the confluence of factors that led to business misconduct at News Corporation’s News of the World newspaper. Special attention is given to three contributing factors: (1) organizational culture, (2) management decision-making and high-risk strategy, and (3) failures in corporate governance. A basic argument is that such glaring failures were directly aided by a diffusion of authority where neither the company’s executive leadership nor its corporate board of directors were willing to acknowledge or take responsibility for the actions of the newspaper’s management and professional writing staff. There was an information gap that allowed poor strategic decision-making to occur. The closure of News of the World brought an end to a 168 year old highly successful English-language newspaper.
I knew nothing about phone hacking…
Rupert Murdoch CEO, News Corporation Ltd.
I accept that I did not do enough. It doesn’t mean I was a party to it.
Andy Coulson, Former Editor News of the World
I don’t think anybody, me included, knew it was illegal.
Rebekah Brooks, Former Editor News of the World
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Notes
- 1.
According to the Society of Professional Journalists, journalistic integrity rests on four key principles:
1. Seek truth and report it
Ethical journalism should be accurate and fair. Journalists should be honest and courageous in gathering, reporting and interpreting information.
2. Minimize Harm
Ethical journalism treats sources, subjects, colleagues and members of the public as human beings deserving of respect. Journalists should balance the public’s need for information against potential harm or discomfort. The pursuit of the news is not a license for arrogance or undue intrusiveness.
3. Act Independently
The highest and primary obligation of ethical journalism is to serve the public. Journalists should avoid conflicts of interest, real or perceived… Refuse gifts, favors fees and special treatment that may compromise integrity or impartiality or may damage credibility.
4. Be Accountable and Transparent
Ethical journalism means taking responsibility for one’s work and explaining one’s decisions to the public. Journalists should explain ethical choices and processes to audiences… Acknowledge mistakes and correct them promptly and prominently… Expose unethical conduct in journalism, including within their [own] organizations (SPJ Code of Conduct, 2016).
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Gershon, R.A., Alhassan, A. (2017). The Diffusion of Authority: A Case Study Analysis of News Corporation’s News of the World Newspaper. In: Altmeppen, KD., Hollifield, C., van Loon, J. (eds) Value-Oriented Media Management. Media Business and Innovation. Springer, Cham. https://doi.org/10.1007/978-3-319-51008-8_16
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