ethics&governance-news corp
TRANSCRIPT
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PROJECT BY-
ABHINAV SHOREY D -02
AISHWARYE KUMAR D-06
DAUV BAFNA D-13
SHEZAD VASI D-42
SIDDHANT GARG D-44
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INTRODUCTION
News Corporation or News Corp. was an American multinationalmass media corporation headquartered in New York City. It was
the world's second-largest media group as of 2011.
News Corp was created in 1979 by Rupert Murdoch as a holdingcompany for News Limited.
At present, News Corporation is headquartered at 1211 Avenueof the Americas, New York.
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NEWS COPORATION
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CODE OF ETHICS
The Company has developed and adopted a Code of Ethics applicable toits Chief Executive Officer and senior financial officers to promote honest
and ethical conduct.
The Chief Executive Officer and each senior financial officer shall, atall times, conduct himself or herself in an honest and ethical manner,
including the ethical handling of actual or apparent conflicts of interest
between personal and professional relationships.
They are responsible for full, fair, accurate, timely and understandabledisclosure in: (a) the reports and documents that the Company fileswith, or submits to, the SEC, and; (b) the Companys other
communications with the public, including both written and oral
disclosures, statements and presentations.
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CODE OF ETHICS
They shall not, directly or indirectly, take any action to coerce,manipulate, mislead or fraudulently influence any independent,
public or certified public accountant engaged in the performance
of any audit or review of the financial statements of the
company.
The Chief Executive Officer shall promptly bring to the attentionof the Companys Audit Committee any information he or she
may have concerning control weaknesses in the design of
internal control, Any fraud that involves management which havea significant role in the Companys internal control.
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CORE VALUES
We are building on our heritage of innovation and challengingthe status quo.(Terminal Value) Together we are striving to unlock the power of the
imagination(Instrumental Value)
We create and deliver contents that anticipates the needs of ourcustomers.(instrumental value)
We are united in our passion for enlightening and engaging ourcustomers.(instrumental value)
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We are moving markets on the power of imagination.(terminal value)
We are removing the boundaries for how and where peopleaccess and enjoy high content .(instrumental value)
We are collaborating to create and deliver meaningfulexperiences to our customers. (instrumental value)
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CASE STUDY
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DIAMOND MODEL
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PURPOSE
News Corporation mission statement "Creating and distributingtop-quality news, sports, and entertainment around the world.
Mission statements state the purpose of the organization, arethe starting point for strategy, and aid stakeholders in decision
making.
Delivering extraordinary experiences for our customers andconsumers is at the heart of who we are.
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STRATEGY AND SCOPE
Continuing to invest in a distinctive editorial proposition, differentiatedfrom free alternatives: depth of news, comment and opinion withauthority
Affirming our news brands as unambiguously "paid-for" Evolving from anonymous daily transactions to deeper customer
relationships, subscription where possible
Embracing opportunity presented by delivery to web, tablet, smart-phone
Harvesting data from these relationships to enhance ad sell and offeradditional profitable services to our customer franchises
Pursuing cost efficiencies and ancillary revenue opportunities
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STANDARDS AND BEHAVIOUR
Keep It Short Tell Employees How to Think, Not What Not to Do Stay Specific Make the Document Real Make Sure Managers Live the Code
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VALUES
We are building on our heritage of innovation and challenging thestatus quo.
Together we are striving to unlock the power of the imagination
We create and deliver contents that anticipates the needs of ourcustomers.
We are united in our passion for enlightening and engaging ourcustomers.
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CASE STUDY
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CASE CHRONOLOGY
November 2005: A story is released about Prince Williams knee injury and he fears his aidesvoicemails are being hacked by a third party, sparking police interest
January 2007: Following a trial, the royal editor for News of the World, Clive Goodman, isincarcerated for four months for hacking personal voicemails (1st conviction of the case). It isreleased during trial that he has phone numbers and voicemail pins for celebrities for the use ofhacking. Goodmans confidant, private investigator Glenn Mulcaire, is jailed for six months on
the same charge. As a result, editor of the News of the World, Andy Coulson, formally resignsyet claims he was unaware of the illegal happenings
May 2007: Coulson is hired as Communications Director for the Prime Minister, David Cameron July 2009: The Guardian releases a claim that News of the World has been involved in a phone
hacking scandal involving 3,000 celebrities, politicians, royals and sports stars under the editorAndy Coulson. Formal inquir ies ensue by the cross-party House of Commons Culture, Media
and Sports Committee (governmental department which oversees the actions of the internetand broadcasting media) to question Coulson regarding these accusations. Scotland Yard saysit is not reopening the case
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September 2009: Scotland Yard reveals it has identified possible victims of hacking November 2009: The Press Complaints Commission says they have found evidence of
hacking
February 2010: The Culture Committee claims there is no way senior executives wereunaware of the practices. News International, the parent company, rejects the claims and
accuses the committee of exaggerations. There is still no evidence Coulson was involved
in the hacking
September 2010: New York Times releases a story based on several reports by formeremployees, suggesting News of the World was practicing phone hacking and Coulson was
fully aware and involved. Former employee of News of the World, Sean Hoare, tells BBCthat Coulson personally asked him to phone tap, and claims it was considered a dark art
in the industry
December 2010: Scotland Yard claims there is no new evidence January 5, 2011: News editor, Ian Edmondson, is suspended in regards to the phone
hacking allegations of 2005 January 21, 2011: Coulson resigns as blaming the phone hacking scandal
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January 26, 2011: Scotland Yard formally reopens the case citing significant newevidence. Also, Ian Edmondson is fired
February 9, 2011: More potential victims are identified, above those listed as victims ofGoodman and Mulcaires (original arrests) actions
April 8, 2011- News International issues a statement saying it will be responding to someof those suing them with an apology, admission of liability, and monetary compensation.
They will continue to attest cases they feel the company is not responsible for
April 10, 2011: News International published an apology for specific instances of hackingfrom 2004-2006
July 4, 2011: The Guardian releases a story accusing News of the World of hacking thephone of a murdered schoolgirl, Milly Dowler, days after she went missing
July 6, 2011: The list of companies suspending their advertising in News of the Worldcontinues to grow
July 8, 2011: Andy Coulson is arrested on hacking allegations but later released on bail.Clive Goodman is re-arrested on charges of bribing police officers, but also released onbail
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July 15, 2011: Former News of the World editor, Rebekah Brooks, resigns as chiefexecutive of News International. Les Hinton, who told Parliament in 2009, when he was
executive chairman of News International, that any problem with hacking was limited to
one case, resigns as chief executive of Murdoch's Dow Jones & Co
July 16, 2011: Rupert Murdoch issues a direct apology which is carried in British nationalnewspapers
July 17, 2011: Rebekah Brooks is arrested July 19, 2011: Rupert Murdoch, his son James, and Rebekah Brooks are questioned by
Parliament's Culture, Media and Sports committee
July 20, 2011: Parliament issues report admonishing News International for attempting to"deliberately thwart" the original investigation
November 7, 2011: News International admits to ordering surveillance of two lawyersdefending victims suing the media empire over the hacking scandal
November 9, 2011: James Murdoch appears before Parliament again after his earliertestimony was contradicted
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STAKEHOLDERS MODEL
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GOVERNMENT
MEDIAPOLICE &
SCOTLAND
YARD
PRINCEWILLIAMS
SENIOR
MANAGEMENT
PARLIAMENTARYCOMMITTEE
EMPLOYEES
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STAKEHOLDER TYPE COMMENTS
1. Senior Management Primary Active The senior management arethe key stakeholders in thecase since due to the actionsand the directions given by
them have eventually lead tothe phone hacking scandal.
2. Employees Primary Active The employees can be seen tobe the most active in the case
as they are the ones who hadactually hacked into the
phones to get information.
3. Prince Williams Secondary Passive The news of knee injury ofPrince Williams which washighly confidential led royalcourt officials to open a police
investigation.
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4. Government Secondary Passive toActive
The government authoritiessuch as the Prime Minister
are passive but during thescandal they became active
as the initiated investigationsand also in active contact
with the management and
employees
5. The Guardian &The New York Times
Secondary Active The competitors were thereason of enlarging the
scandal to greaterproportions and causing
public involvement bypublishing articles exposing
the scandal.
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6. ParliamentaryCommittee
Secondary Active The committee was setupduring the investigations of
the phone hacking scandal
before which Rupert Murdochand his team appeared fortrials.
7. Scotland Yard andthe Metropolitan
Police Service of
London
Secondary Passive They investigated the matterand made arrests and thusturned active only for a briefperiod during the same.
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MENDELOWS MATRIX
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OBSERVERS KEY PLAYERS
SENIOR MANAGEMENT
EMPLOYEES
CROWD BYSTANDERS
THE GUARDIAN PRINCE WILLIAMS
THE NEW YORK TIMES PARLIAMENTARY COMMITTEE
SCOTLAND YARD
METROPOLITAN POLICE
BEFORESCANDAL
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OBSERVERS KEY PLAYERS
SENIOR MANAGEMENT
EMPLOYEESTHE GUARDIAN PRINCE WILLIAMS
THE NEW YORK TIMES PARLIAMENTARY COMMITTEE
SCOTLAND YARD
METROPOLITAN POLICE
CROWD BYSTANDERS
AFTER
SCANDAL
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CHALLENGES
Rising popularity of DVRs Economic slowdown of us
New technology has cut down the profit revenue for printedmedia
Corporate rivalry : John Malones liberty media
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LESSONS LEARNT
Articulate a meaningful mission and core values
Hiring, rewarding, training, measuring and in every other wayreinforcing its mission and core values
Nurturing truth-telling cultures
Keeping the main thing the main thing
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TH NK YOU