Hi Wendy email says it all this is a finely crafted piece and a HD Unit MGT531 Business Ethics Subject Coordinator Tom Denigan Student Wendy Student ID: Extension granted Length 2,500 - 3000 words Word count 2998 excluding Cover Page, Glossary & References (1302 words) Submitted 4 January 2014 Western Standard Time Assessment Item 2 Essay ‘The price good men pay for indifference to public affairs is to be ruled by evil men.’ Plato Consider whether the statement is as relevant today as it was when it was constructed. Discuss this with reflection on the following: Describe what an ethical dilemma is and include a contemporary business example of how this dilemma reinforces the quote. Discuss how this situation poses an ethical dilemma in the workplace. Outline one ethical theory from this subject in depth, describing the ethical beliefs or assumptions made by this ethical approach, and critically considering the implications of these ideas. Consider the plight and exploitation of those with less power at an individual, societal and or international level. Whether in today’s world or in Classical Greece, the risk of those driven by self-interest seizing control has always been high when people take little interest in public affairs. Moreover, Plato’s observation that ‘The price good men pay for indifference to public affairs is to be ruled by evil men’ is true not only for leaders in public office, but also for leaders with power in the private sector. Few private corporations have the potential to wield as much power as those in the business of media. A century ago, in Western democracies, the free press was populated by many voices and media barons published a wide range of political, economic and environmental opinions. Pressure from media tycoons for deregulation has, over time, enabled significant concentration of media ownership. In Australia, just six families now control all major media outlets (Flew & Goldsmith, 2013). Concentrated media ownership creates serious problems – firstly it can to a very significant extent empower media owners to influence media regulation in their own favour (Harding-Smith, 2011, p. 5). Secondly, it enables a wholly undemocratic alliance to be forged between newspaper proprietors and governments, a situation Coogan (2011, p. 1), actor, writer and victim of phone hacking, claims Rupert Murdoch has engineered in the United Kingdom (UK). This paper will contend that Rupert Murdoch is an evil man who exercises significant control in public affairs. Murdoch regularly protests his innocence, but many highly credible sources support the contention. According to Forbes (2013), Murdoch is 90th richest person in the world and the 26th most powerful person in the world. Professor David McKnight (2012) says Murdoch controls the most powerful media organisation in the world (News Corporation, {NWS on the Australian Stock Exchange}), and Murdoch has achieved this power through his ‘unflinching use of his media empire to further his political agenda over decades’. When Murdoch looked to acquire Channel 10 in Melbourne, the Australian Journalists’ Association, in a submission to the Australian Broadcasting Tribunal, alleged that Murdoch was ‘an autocratic and unprincipled proprietor who demanded that his lackeys publish distorted accounts of the news when it suited him’ (in Donovan, 2011, p. 1). In 2011-2012, a media ethics inquiry into Murdoch’s UK phone hacking scandals exposed how ‘tabloid reporters and their sidekicks bullied, stole and cheated with impunity, while their bosses hobnobbed with police officers and politicians’ (The Leveson inquiry: Hacked to pieces, 2012), and saw sixteen NWS journalists convicted and gaoled. Adam Curtis (2011, p. 2) goes as far as describing the magnate’s rise to power in the UK as Satanic. Coogan (in the Leveson Inquiry, 2012) equates the Murdoch press with ‘the mafia’, explaining how politicians are intimidated: It’s [News International’s] behaviour is not unlike a protection racket: be nice to us – that is, let us conduct our business unencumbered by scrutiny or indeed regulation – and we will return the favour by publicly supporting your political campaign. Be nasty to us – ie subject us to too many checks and balances, or curtail our plans to expand our empire – and you will feel our wrath. Of course senior management don't get their hands dirty. No one gets beaten up; they just drag your name through the mud. It's a word in an ear and a life is ruined. Working for such a proprietor presents a prodigious ethical dilemma for employees. In the UK newspapers are dwindling, jobs for reporters are highly competitive, and of the remaining press, NWS controls 40%. This paper will examine the ethical challenges faced by employees of NWS tabloids like The Sun and the now defunct News of the World (NotW), principally focussing on the recent so-called ‘phone hacking scandals’ in the UK press. Journalists, whether in the public or private sectors, have public responsibilities. According to the Australian Code of Ethics for Journalists (n.d.), fundamental principles are ‘inform citizens and animate democracy...[journalists] scrutinise power...and should be accountable’. In Western democracies like Australia, the United States of America (USA) and the UK, over the last decade traditional reliance on the fourth estate for information on social, political, economic and environmental issues has shifted significantly. Two trends are apparent. Firstly, in the modern ‘time-poor’ world, more and more people prefer to access abridged news in tabloids and electronic media, delivered in cursory grabs while they multi-task (driving, cooking, dressing etc). Secondly, the market for serious analysis of news content through print journalism is shrinking, while demand for entertainment and ‘infotainment’ is increasing, (Edmonds, Guskin, Rosenstiel & Mitchell, 2012) in spite of (or perhaps because of) the ever widening disparity between incomes for the rich and poor in Australia (Karvelas, 2012), the USA (Autor, Katz & Kearney, 2006) and the UK (‘The rich, the Poor and the Growing Gap between them’, 2006). For ‘evil men’ wishing to aggregate more wealth, power and influence, this presents an ideal scenario. When voters are distracted by simplified and sensational stories from the gutter press on celebrities, sports and ‘infotainment’, it becomes easier to persuade voters to elect governments which will soften taxation law and monopolies law for ‘the big end of town’ allowing ever greater concentration of media ownership for multi-national corporations like NWS. Governments owe debts of thanks to powerful conglomerates who bankroll their election campaigns, and to media moguls who carefully choreograph shifts in public opinion through front page constructs of pictures, headlines, lies and spin. Keane & Dyer (2013) catalogue an eight point ‘Election IOU’ which they argue Murdoch will expect Tony Abbott to fulfil as a result of the overwhelming support Abbott enjoyed in the lead up to the September 2013 federal election. Professor Rodney Tiffen (in Belot, 2013) observes: ‘Occasionally the Murdoch press gives qualified and tepid support to Labor, but only when it’s likely that Labor are going to win...In an editorial column every Friday before the nation heads to the polls, The Australian has endorsed 11 Liberal leaders and only 2 from the Labor side...Rudd in 2007 and Hawke in 1984.’ Trevino & Nelson, (2011, p. 38) describe an ethical dilemma as ‘a situation where two or more “right” values [or responsibilities] are in conflict.’ Individuals must make their own ethical choices from competing moral imperatives. The ethical dilemma for reporters working for the Murdoch dynasty is choosing between conflicting responsibilities. One responsibility is a social expectation that journalists should act with integrity. The National Union of Journalists’ Code of Conduct (2013) sets clear standards: ‘obtain material by honest, straightforward and open means; do nothing to intrude into private lives, grief or distress; ensure that information is...honestly conveyed, accurate and fair’. Sadly, adhering to these standards would very likely put NWS tabloid journalists’ jobs in jeopardy. Second, are employees’ responsibilities, to render faithful and loyal service to employers and to obey orders – ie to ‘procure’ stories. Complying with these employee responsibilities had allowed the public to be ‘informed’, editors to publish profitable papers, and journalists jobs to be secure. Unfortunately, it facilitated a greater acquisition of power by ‘evil men’. while reasoning that ‘the public has a right to be informed’, NWS reporters could procure stories that sold papers and satisfied their editors, ensuring their jobs remained secure and meeting their family obligations. While some media poured resources into investigative reporting and analysis of issues of public interest, Murdoch expanded his fortune and his influence by hiring reporters who chose employee responsibilities over moral codes and integrity. He shocked the Establishment, dredging up sordid details of the Profumo affair from Christine Keeler’s memoirs, and using political connections to Margaret Thatcher to prevent the Monopolies Commission from blocking further newspaper acquisitions such as The Times (Curtis, p. 4). Rival publishers and the Establishment resented Murdoch’s success. Their disapprobation created high levels of agreement through a ‘siege culture’ in the Murdoch workplace. In 1981, a BBC TV production, ‘Who’s Afraid of Rupert Murdoch?’ set out his key strategies: He takes over intelligent newspapers and turns them into trash...he turns the news reporting in his newspapers into a propaganda wing of his chosen editorial line, and then uses that to destroy politicians he doesn't like and help elect those he does. It describes the scandal ...when Murdoch got a massive loan from the US government just after he had endorsed Jimmy Carter in the New York Primary. It reports the outrage in New York over the sensational way his newspapers [turned a brutal] serial killer Son of Sam...into a celebrity (Curtis, p. 3). News International’s public message presents an appropriate ethical position: at the parliamentary inquiry into revelations of phone-hacking and police corruption, Murdoch said ‘There must have been one rogue reporter...This is the humblest day of my life’. Such statements completely contradict NWS’s private corporate culture. The company rewards those who push the boundaries, ‘do whatever it takes, rules are for other people’ (McKnight, p. 2). As in any workplace, NWS reporters absorb cultural norms through their contact with colleagues and superordinates. In 2011, days after resigning as head of News International, Rebekah Brooks was arrested for her role in the phone hacking and police corruption scandals, yet as part of her severance package, NWS gave her £1.7 million in cash, the use of an office in affluent central London and a chauffeur-driven limousine for two years (Dyer, 2011, p. 1). This sent a clear message to reporters that her illegal conduct was valued immensely. A secret recording, made as Murdoch privately addressed staff at his Sun tabloid about the Leveson Inquiry, reveals ‘misalignment’ (Trevino & Nelson, 2011, p. 154) between the public image and the private culture of the organisation. Murdoch: ‘Why are the police behaving in this way? It’s the biggest inquiry ever, over next to nothing...We're talking about payments for news tips from cops: that's been going on a hundred years...it’s just part of the culture of Fleet Street’ When one journalist in the room said ‘it would be nice to hit back,’ Murdoch replied: We will, we will.’ (Miller, 2013, p. 1). McKnight (p. 2) believes this general disdain for the seriousness of the whole scandal is very typical of Murdoch.’ This in camera highly calculated portrayal of himself as an unethical leader was intended to counteract his public rhetoric, so employees would continue to flout ethical standards. With reference to Kohlberg’s Cognitive Moral Development (in Trevino & Nelson, 2011, pp. 78-79), highly principled journalists concerned with justice and rights (at the Postconventional level) would not work for Murdoch’s ‘guttersnipe tabloids’ (Gillette, 2013). NWS tabloid reporters would largely be at the Preconventional level, bowing to editorial demands while weighing up the risk of being caught and the potential reciprocal benefits, ‘single-mindedly pursuing success’ and seeing right and wrong decisions purely in terms of career outcomes (Mullin, 1986, p. 2). Some might be at stage 3 of the Conventional level, meeting social approval by fulfilling duties expected by their superiors and work colleagues. Ethics at work incorporate our relationships with others and with our organisations (Hartman & Desjardins, 2008, p. 190). The nature of the work that journalists at The Sun and NotW carried out required creative interpretation of rules, codes and laws. This would preclude NWS reporters from adopting a deontological approach founded on moral principles and ethical duty, ‘doing what is right’. Neither could NWS reporters could embrace a virtue ethics approach, based on an individual’s desire to be a moral character striving to live virtuously, because there would be no community that could hold them to an appropriately high ethical standard and support their intention. Utilitarians’ actions and decisions, are guided by results that benefit the majority in society, not the means by which those outcomes are reached. It is probable that the ethical approach NWS tabloid journalists adopted etc was utilitarian. No doubt, justification for illegal activities and intrusion would echo Murdoch’s - it is in the public interest and the public has a right to be informed. Like all consequentialists, reporters’ ethical decisions would have hinged on the positive consequences outweighing the negative consequences. Both the journalists and the NWS tabloids were key stakeholders, so the potential benefits of meeting the demands of the corporation operated in parallel: preservation and development of reporters’ careers supported preservation and development of the business. Both were acutely aware that sales of traditional newspapers had plunged by 20-25% in a decade (Greenslade, 2009). Print advertising revenue had halved in ten years, and media profit margins continue to decline (Edmonds, Guskin, Rosenstiel & Mitchell, 2012). Both justified illegal activities such as phone hacking, illegal purchase of sensitive information, recruiting of private investigators with criminal records, compromising senior politicians and obtaining information from corrupt officials because these sources provided the stories which they felt would keep them employed and strengthen the company. A major potential harm in meeting the demands of NWS - for both - was being caught! This did not appear to have been seriously factored in, and the resultant reputation damage from being caught has had massive repercussions for the business, including the loss of revenue from closure of the most profitable paper in the stable – NotW, and the loss of the opportunity to control BSkyB (Knott, 2013, p. 2). For the subjects (victims?) of media stories, reporters may have assessed potential harms of meeting NWS’s requirements as reputation damage and other possible ramifications such as psychological, relationship and career damage. Reporters would regard these media subjects as a minority group, and being utilitarians, the reporters would sacrifice the subjects’ rights for the benefit of the majority group – the public (Trevino & Nelson, 2011, p. 42). Potential harms in non-compliance with NWS’s demands on reporters would be self-censorship, peer disapproval and quite possibly unemployment in an industry where new jobs are difficult to find, bringing pressures on their families. Journalists now lead extremely hectic lives – gone are the days where there was a single deadline for a print run each day. The news cycle is now 24/7, and in addition to press commitments, reporters now have multiple daily commitments such as electronic stories, blogs, updates, TV, radio etc. This means they will often be forced to rely on ‘script processing’ where a cognitive framework allows more efficient information processing where the individual calls on an established behaviour patterns without detailed contemplation of actions or decisions (Trevino & Nelson, 2011, p. 102), and automatic ethical decision making where judgements are ‘more intuitive, impulsive and automatic’ (p. 93). Murdoch consciously appointed leaders like Rebekah Brooks and Andy Coulson, firstly because they apparently operated in a state of permanent moral disengagement, and secondly precisely because their guidance would not support ethical decision-making amongst their staff. Operating on the Macchiavellian premise that ‘the end justifies the means’, tabloid editors paid convicted criminals Jonathon Reece and Steve Wittimore for thousands of requests to break the law (Ferguson, 2011) - phone and email hacking, burglaries and theft from phone and credit companies were practised on an industrial scale. Reporters were forced to compete with each other for content and to work to very tight budgets (Ferguson, 2011). Berating emails threatening disciplinary action on news desk spending (quoted in Holton & Holden, 2013, p. 2) reveal the pressure NWS tabloid reporters operated under, and their resulting propensity for displacement of responsibility. In this environment, they are likely to have high external loci of control. As the network of corrupt officials and the culture of illegal payments (Halliday & Baird, 2012, p. 1) burgeoned, Murdoch reporters would have become psychologically ensnared through illusions of superiority, poor estimation of the risks they were taking – illusion of optimism and control, escalation of commitment to illegal practices and a predilection to reduce the number of consequences they considered, (Trevino & Nelson, 2011, pp. 90-91). As the phone hacking scandal reached fever pitch, NWS shut NotW down. The Independent’s editorial (in Buckmaster & Jamieson, 2011, July 8) commented: It is probably not reasonable to believe that phone hacking and other unethical and illegal practices were restricted either to the NotW or to the News Corp stable… But it is also crucial to defend the honour of this and other newspapers, especially at a time when the press as a whole is coming under acute financial pressure. Most journalists and most newspapers well know the difference between ethical and unethical, legal and illegal, right and wrong. Most stay on the right side of the line. It is impossible to gauge the full reach or impact of Murdoch’s abuse of power (Jukes, 2012), no one can measure the extent to which he determines political policy or how much big business gains, and ordinary people lose, as a result of his corporate advocacy. Individual citizens have been used shamelessly to sell tabloids. They have suffered dreadfully through Murdoch press’s flagrant breaches of the right to privacy. Earlier, Murdoch’s tabloids mainly targeted those in public life, celebrities, members of the British royal family and politicians. More recently, hacking of phones and emails widened, prying into the personal lives of relatives of murdered schoolgirl Milly Dowler, deceased British soldiers, and victims of the 2005 London bombings. Lord Justice Leveson remarked, ‘There have been too many times when parts of the press have acted as if its own code, which it wrote, simply did not exist. This has caused real hardship and, on occasion, wreaked havoc with the lives of innocent people whose rights and liberties have been disdained’ (Leveson Inquiry, 2012). At a societal level, intrusions are even less ethical, used as ‘weapons against those who get in the way of News International’, (Coogan in Laughlin). Ex- Prime Minister Malcolm Fraser in 1991 (in Harding-Smith, 2011) suggested that high media concentration made it particularly difficult for politicians not to give in to pressure from owners, ‘Because we live in this kind of world and it cannot be stopped, if that pressure is coming from one or two extraordinarily dominant media owners it can get very difficult.’ (Coogan in Laughlin, 2011) ‘Two years ago I rang my publicist and said, “[I’m told] that my phone may have been hacked.” I was told, ‘That story's gone away, it's not going to come back and [NotW Editor Andy] Coulson's at the heart of Downing Street now, he's surrounded by a ring of steel’'. UK Member of Parliament Tom Watson (2012) said, ‘The tentacles of the company get into all levels of government, Prime Ministers Thatcher, Blair and Cameron, aides to ministers were working as aides to NWS executives...it has a grip on police, criminal justice, etc...the Murdoch empire operates as a “shadow state”’. To conclude, using reporters to do his dirty work, Murdoch has masqueraded as a respectable businessman, and loftily espoused freedom of the press. By implication, his message is, Murdoch press are chiefly concerned with corruption and duplicity, not the tawdry stories that titillate the senses to satisfy its commercial interests. Unfortunately, until extremely late in the day, once they were placed in an utterly untenable position, his publications, including The Times, completely failed to cover the phone hacking scandals, or their questionable relationship with the Met police. Freedom and responsibility are two sides of one coin. Murdoch’s tabloids have exploited the freedoms, but failed to exercise the responsibilities. Murdoch has spruiked ethics, morality and the notion of service to the public. However people who pay close attention to public affairs will understand that this is a consummate and elaborate fiction. If Plato were alive today, he would be very concerned about the truth of the matter, which is, News Corp has in fact only two closely interwoven priorities, its shareholders, and Mr Murdoch’s own relentless appetite for influence over democratically elected governments. Glossary BSkyB British Sky Broadcasting Group – the largest pay-TV broadcaster in the UK, and a British satellite broadcasting, broadband and telephone services company based in London. News Corporation (News Corp) – multinational mass media company based in New York founded by Rupert Murdoch, valued at $60USD billion News International a newspaper publisher in the UK which operates The Times, The Sun, the now-defunct news of the World, et al. News of the World (NotW) – a 168 year old UK tabloid publication which Murdoch purchased, and ultimately shut down in response to embarrassing revelations about phone hacking et al NotW News of the World – a 168 year old UK tabloid publication which Murdoch purchased, and ultimately shut down in response to embarrassing revelations about phone hacking et al NWS News Corporation as listed on the Australian Stock Exchange Leveson Inquiry The biggest inquiry in UK’s history, inquiring into media ethics in response to the Murdoch press’s phone hacking scandal The Sun The daily tabloid with the largest circulation in UK, owned by Rupert Murdoch The Times A British daily newspaper founded in 1785, now owned by Rupert Murdoch References Autor, D. H., Katz, L. F. & Kearney, M. S. (2006, January). The Polarisation of the U.S. labour market. National Bureau of Economic Research Working Paper. No. 11986. Barry, P. (2013). Sex, lies and the Murdoch succession. Sydney: Allen & Unwin. 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