november 2011 fairfax media limited - the sydney morning...

November 2011

Fairfax Media Limited

Independent Inquiry into Media and Media Regulation

1 Introduction

Fairfax Media Group

Fairfax Media Limited is Australasia’s largest integrated metropolitan, rural and regional, print and online digital media company. It has publications and websites in every State and the ACT in Australia, and throughout New Zealand.

In Australia, mastheads include the Sydney Morning Herald, The Age, the Australian Financial Review, the Canberra Times, the Illawarra Mercury, the Newcastle Herald and The Land.

Its New Zealand mastheads include The Dominion Post, The Press, the Sunday Star-Times, TV Guide, NZ House and Garden, and Cuisine.

In all, Fairfax Media publishes well over 200 regional and community newspapers throughout Australia and New Zealand.

Most mastheads have associated websites and Fairfax Media has leading online media and transaction businesses including news sites smh.com.au and theage.com.au, and afr.com.au.

Fairfax Media also has music and talk radio stations in Sydney, Melbourne, Perth and Brisbane.

Submission Summary

(a) This submission will address what Fairfax Media Limited (Fairfax) sees as the key issues raised by the Inquiry. Fairfax will also attend the Inquiry during public hearings in Sydney.

(b) We are responding separately to Mr Finkelstein’s letters dated 7 October, 2011, addressed to a number of Fairfax editors. We do note that some of the issues raised in these letters are also covered in this submission.

(c) Fairfax does not believe there are problems with the integrity, accuracy, bias or conduct of the media which warrant further regulation.

(d) Freedom of speech and a robust media independent from Government is essential to a strong democracy and a strong economy - regulation should be as light handed as possible.

(e) We believe that the media - including the press - is already heavily regulated. Further regulation will not effectively control internet publications and has the real propensity to disadvantage local players compared with overseas based internet publishers. This is bad for business, bad for the media and serves little purpose.

(f) The Fairfax culture and systems are strong and appropriate to fulfil our responsibilities to our readers and the public. Supplemented with existing laws and the complaints mechanism of the Australian Press Council (‘APC’) they provide the checks and balances necessary.

(g) The APC should remain an entirely voluntary organisation and, with some better focus, provide a robust mechanism for mediating and adjudicating complaints against press and internet members.

(h) Fairfax does not support the proposition that independent journalism needs the support of the Government to survive. Business models are developing which we are confident will deliver a strong vibrant industry without Government ties.

Fairfax Media Limited Submission to the Independent Inquiry into Media and Media Regulation page 2

2 The Importance of an Independent Media

(a) Freedom of speech and a robust and independent media are fundamental to a strong democracy. This means that to the greatest extent possible the media must be as free from interference from all arms of Government. It should be able to act without fear or favour in carrying out its duty to inform the public, scrutinize the Government and indeed all sides of politics and all arms of Government and the judiciary. The media is often called the “fourth estate” – the four limbs of a democracy being the Government, the public service, the judiciary and the media. It is up to the media to question, critique and challenge Government and the political process. It is not for Government regulation to judge whether the media is accurate or biased. Indeed it is very likely, if the media is doing its job, that the Government, political parties and the other arms of Government will consider some part of the media is biased at any time. This is not a failing of the media.

(b) Media is obliged to strive for accuracy in news reporting but it is also entitled to an opinion. The media is not obliged to be impartial. Resentment in various political quarters about what they perceive as media bias by some sections of the press is not a valid reason to seek further control of the media. In fact many political representatives views from all sides often appear in Fairfax publications.

(c) It is not the job of journalists to be liked or even respected. The best journalists ask the questions people don’t want asked. They have fraught relationships with people in power. Their job is to question, challenge and not to trust. Being liked or even respected is not the issue.

(d) In the late eighteenth century journalists began reporting on the House of Commons in the UK. The notion that the Press is the fourth estate rests on the idea that the media's function is to act as a guardian of the public interest and as a watchdog on the activities of Government. This applies more than ever today.

(e) Politicians have access to the floor of parliament and parliamentary privilege to “correct the record” on any media stories that they believe are wrong or unfair. The powerful have access to armies of public relations and media management people. Neither needs further legal protection from what they regard as unfair media commentary.

(f) The cacophony of news, opinion, gossip and sometimes straight out abuse readily available on the internet can be frustrating but it is the outcome of an unprecedented diversity of published material and should be celebrated not discouraged by overreaching regulation. It is a sign of a healthy media not a failure of regulation.

(g) There already exists a large number of laws that provide remedies for illegal publication of material that defames, vilifies or incites forms of hatred.

(h) Because electronic media enjoys spectrum licences granted by the Government it has traditionally been more heavily regulated than the press. We don’t wish to comment on whether such regulation is still appropriate. What we do believe is manifestly obvious is that the extra regulation has not resulted in a more responsible or better quality journalism in electronic media.

3 Is there a Crisis of ethics in the Media that the Inquiry Needs to Address?

(a) The Media Inquiry appears to be precipitated by the News of the World scandal in the UK. There is no evidence that the behaviour of News of the World is present in Australia and Fairfax believes that such conduct is highly unlikely in Australia. In any event phone hacking and bribing police officers is illegal in Australia and if it were to happen could be dealt with under existing laws.

(b) Fairfax publications make mistakes. We get facts wrong and sometimes our judgment slips. We operate in a 24-hour seven days a week competitive news environment where our audiences want news, information, opinion, debate and entertainment as quickly and accurately as possible. Where errors of fact or judgment are made, we


aim to correct them as quickly and comprehensively as is reasonable. The goodwill in our mastheads and our media brands are our key assets. It is very important to us to get stories right the first time- mistakes are noticed and they diminish trust in our brands. We have a very strong commercial imperative as well as a public duty to be as accurate and responsible as possible and our systems aim to minimise errors and lapses of judgment. These systems, as they apply to our major metropolitan and online publications are described in some detail later in this submission.

(c) The terms of reference and the issues paper of this Inquiry seem to suggest there is a serious ethical or moral problem with the press and online media in Australia. We do not agree with this proposition. We do not see evidence of increasing problems that cannot be dealt with through the existing structures and systems, both within media organisations and, where needed, through external bodies including the Courts and the APC. Inevitably, the operation of a free media that canvasses a wide spectrum of views will result in some stories that anger people - especially if they are the subject being reported on or commented about. This, of itself, does not warrant restrictions upon the freedom to deliver news and express opinions freely and without undue interference.

(d) Obviously any system can be improved and we take part in this review on that basis, but we believe caution must be exercised when contemplating further regulation of a fundamental element of a strong democracy - the right to open and vigorous debate and indeed the right to offend if needs be.

(e) Fairfax has today the highest readership ever. Our Sydney Morning Herald website is the nation’s leading digital newspaper masthead, topping 3 million readers in September 2011. That figure counts each reader only once per month. The Age website reached 2.3 million readers during September. Importantly not only are we attracting more readers but those readers find plenty that interests them - visitors to smh.com.au spent more than 45 minutes, on average, on the site during the month of September. If there is a problem with our content, or if the public has a low opinion of our journalism, this is not showing up in our readership numbers.

(f) The media is already extensively regulated in both Federal and State jurisdictions. More regulation may seriously threaten the freedom of the press. Another layer of regulation will cost media organisations in compliance at a time when business models are challenged. Many internet market participants are not easily regulated in any scenario either because they operate from foreign jurisdictions or they are hard to trace.

(g) There are over 200 pieces of State and Federal legislation which regulate on a daily basis the media’s right to publish in Australia.

(h) The legislation ranges through defamation, racial and other vilification prohibitions; restrictions on the naming of vulnerable members of society eg children and those facing a jury trial, suppression orders and much more. There is an ongoing review of whether Australia needs a legislated tort of privacy - we think not. Certainly in our view the notion that Government should attempt to regulate what news is accurate and what opinion is reasonable is dangerous in the extreme yet this seems to be at least in part the motivation of some submissions to this Inquiry.

(i) National and digital publishers must deal with differing state and territory legislation as well as the Commonwealth. Compliance is both tricky and expensive. All mainstream media spends millions of dollars annually in compliance.

(j) Further regulation would be costly, time consuming and largely futile if it cannot reach foreign or anonymous publishers on the internet.

(k) The media operates within the confines of these regulations. Breaches of the law occur, but they are relatively rare in the context of the amount of media published every day. In our experience a breach of law when publishing content in the press usually occurs inadvertently, rather than as a result of a wilful disregard of the law.

(l) An example of one way in which the law operates already to protect members of the public are the anti vilification laws. In the matter of Corte-Real v Fairfax Media Publications Pty Ltd [2010] NSWADT 101033 in the NSW Administrative Decisions Tribunal, the complainant alleged that an opinion piece written in The Sydney Morning Herald, incited hatred, serious contempt or ridicule toward the homosexual


community. The Tribunal in finding that the article did not breach the law stated “an opinion piece is published for the purpose of providing discussion or debate.” We agree.

(m) Fairfax successfully argued that even if the story amounted to vilification it fell within the defence in that the column was written and published reasonably and in good faith for the purpose of furthering public discussion and debate. Prior to commencing discrimination proceedings, the complainant had lodged a complaint with the APC.

(n) This case is an example of the existence of one robust legal structure that is available to complainants and is regularly used by those who believe the press has published inappropriate, unreasonable or unlawful content.

(o) As recently as October 27, 2011, a piece written by the same journalist, Paul Sheehan, was published about the rugby world cup which attracted a lot of online commentary - much of it highly critical of the piece and the journalist. In response Mr Sheehan commented not just on the robust debate his piece prompted but on the digital phenomena of reader comment:

“In the evolution of newspapers, internet editions run ''comments'' at the bottom of many opinion pieces, in the spirit of the democratisation that the internet is meant to represent. We no longer talk at our readers, we talk with them…..

The overwhelming bulk of posted comments are anonymous, spontaneous and negative, with a heavy bias to vicious. So, you get a trifecta of ignorance. I'm not sure if this cheapening of the public discourse is what the media had in mind. Comments often come from roughly 0.2 per cent of readers, so they are not even reliably representative. They are the home of a certain type of personality, encapsulated, for me, by one reader last week, ''JJ'', who wrote: ''I didn't even read any of the article. Just came straight down to the comments section to say that you are an idiot.”

My advice to people who do not like me or my columns is to stop reading them. Irrelevance is my enemy, not insult. Don't rise to the bait.”

(p) Mr Sheehan is a journalist who undoubtedly divides opinion. Those people who respond to him are not always considered or informed in their comment but in our view it would be a retrograde step to attempt to regulate further to stop publication of controversial or wrong headed material which expresses an opinion.

(q) The recent Andrew Bolt case in Victoria demonstrated further that when a publication is wrong and seriously offensive there is already a remedy. In that case the plaintiffs chose to take action under the racial vilification laws but they could equally have mounted a case for defamation or gone to the APC.

4 Look at the Data

(a) The table below provides the number of corrections, clarifications and apologies that have appeared in major Fairfax publications over the period October 1, 2010 to September 30, 2011. The number of complaints made to the Press Council is also included. To put this into a meaningful context, the approximate number of stories published by each masthead each year is included. This was calculated using an average week and multiplying by 52.


Complaints analysis October 2010 - September 2011

SMH & SH The Age &

The Sunday Age

Canberra Times AFR Online

Corrections 97 23 44 112

Clarifications 15 10 10 6

Apologies 5 3 2 1 * Complaints & Errors to Readerlink ** Editorial feedback made online

1765 1,065

Complaints to the Press Council

16 14 7 3

Approx total stories published per annum 71,136 62,036 55,016 46,800 182,000

% of corrections, clarifications and apologies to total stories 0.16% 0.06% 0.10% 0.25%

% of complaints to the Press Council to total stories

0.02% 0.02% 0.01% 0.01%

% of complaints to Readerlink (Herald) / Editorial Feedback (online) to total stories

2.48% 0.59%

* Only available for The SMH and The Sun-Herald ** Editorial feedback made online apply to the 4 masthead sites: The SMH, The Age, Brisbane Times & WA Today

(b) As the table illustrates, the number of corrections, clarifications and apologies made and the complaints made to the APC compared to the number of stories published per year, is 0.25% or less in the case of each of the relevant publications. This number is higher when it includes the Readerlink data available from The Sydney Morning Herald and The Sun-Herald (2.48%), but it is still a very small number and includes very minor and trivial complaints. This is considered further under the Sydney Morning Herald section below.

(c) In total there were 566 complaints made to the APC about articles published by member organisations in 2010 / 2011. These numbers are based on the “preliminary complaints outcomes” reported on the APC website. http://www.presscouncil.org.au/uploads/52321/ufiles/APC_Preliminary_Complaints_Outcomes_2010-11.pdf

(d) None of the above data suggests a crisis in media when considering the total number of articles published in print and online each year.

5 Fairfax Culture, Systems and Processes

(a) As a daily reminder on the Sydney Morning Herald editorial floor in Sydney near the main lifts, taking a prominent position is an excerpt from The Sydney Morning Herald’s creed from 1831. It states:

"Our editorial management shall be conducted upon principles of candour, honesty and honour. We have no wish to mislead; no interests to gratify by unsparing abuse, or indiscriminate approbation."

(b) The Age also has a founding creed from 1854 which commits it to being:

“a journal of politics, commerce and philanthropy, dedicated to the record of great movements, the advocacy of free institutions, the diffusion of truth and the advancement of man"

(c) These creeds are indicative of the importance we place in quality, independent and responsible journalism.

(d) In addition to regulation imposed by legislation, Fairfax has adopted a range of voluntary codes and standards of ethics, which it requires its journalists to uphold.


(e) The Fairfax wide Code of Conduct applies to every employee within the Fairfax Group. A copy of the code is attached as Annexure A. In addition to this Code, major metropolitan mastheads and websites have their own specific editorial codes of conduct or ethics. Every Fairfax journalist is expected to comply with these codes.

(f) If journalists are members of the Media, Entertainment & Arts Alliance (MEAA), they have the MEAA Code of Ethics to comply with as well. This is not inconsistent with Fairfax’s masthead codes. Generally the masthead specific codes require a higher level of conduct than the MEAA code.

(g) These codes inform our journalists as to how they should conduct themselves at all times throughout their employment. Journalists are made aware of the relevant codes when they commence their employment and are periodically reminded of the terms. There is an ongoing expectation that every journalist, at every level, will comply and enforcement is a regular part the daily routine.

(h) Many of the mastheads publish their code of ethics on their intranet sites and others are in the process of doing so. Publications conduct formal and informal on-the-job training. The codes set out core values and practices of honesty, impartiality, fairness and independence in the gathering and presentation of material. They deal with issues such as the right of the public to information versus the right of individuals to privacy. They include issues such plagiarism and the rules around the attribution of material. Further, they stipulate that journalists must not let advertising or commercial interests influence coverage. Annexure B contains examples of the codes for the Sydney Morning Herald and the Australian Financial Review.

(i) If our journalists fail to comply with the standards reflected in these codes, we risk losing trust with our readers and accordingly, we may take disciplinary or remedial action for breach. Depending on the circumstances, by:

i. correcting the mistake, either in the relevant publication and / or by writing to any aggrieved party;

ii. providing extra training or mentoring of the journalist(s) in question;

iii. taking part in APC intervention;

iv. complying with any other legal obligations under the various legal options available; and

v. warning or potentially dismissing the employee involved.

(j) Accuracy and credibility are central to professional independent journalism and vital to our business. If our journalism is not credible and authoritative, it has no value to our readers. Poor journalism also exposes the company to legal penalties for matters including contempt of court and defamation. Consequently, we apply considerable resources to ensuring the integrity of the material we publish.

(k) Every masthead has its own editorial work flows that address, among other matters, accuracy. This process involves a range of staff in commissioning, writing, developing, editing and checking a story: including the by-lined journalist, section editor, senior editors, journalists participating as part of news conferences, subeditors (including internal and external subeditors), page editors, legal representatives, masthead editors and the editor-in-chief.

(l) While resources and costs are something every media organisation must manage closely, our publications all have systems and processes to maintain accuracy and check facts.

(m) Some of the best journalists in Australia work at our mastheads and a lot of reliance is placed on the journalist who produces the story. Reporters must consider the validity of all the information they receive, seek at least one other source to confirm it, discuss a story’s validity with an editor, and then write the article in such a way that the information published is accurate and balanced. On major publications there is a lot of interaction between journalists and their chief of staff, news editor or department editor to ensure they have asked the right questions, and sought to verify the facts in every way possible. This includes putting any claims or accusations in an article to the subject of the article, whether it is an individual, a department or an organisation. This can often lead to other stories.


(n) The editor or editor-in-chief will often become directly involved in controversial stories or matters that may require legal advice. On occasion, there is a conference between the reporters, their section head, the editor, editor-in-chief and legal advisers to review all aspects of the reporting process and the exact wording of what will be published. Again, this is to ensure accuracy and other considerations such as public interest. Aside from obvious risk mitigation strategies, some of the issues to be considered are: “Is it in the public interest? Is it true? Is it defendable?”

(o) The following diagram is indicative of the processes and staff involved in the development and eventual publication of a story on our major publications:

(p) Speed in breaking news is paramount to online publications; however so is accuracy. While a news story is breaking online, information needs to be confirmed as fast as possible. A good example of the importance our journalists and editors instinctively place on accuracy happened last year when a Qantas plane allegedly crashed over Indonesia. This incident - allegedly involving a Qantas plane was being reported on other sites and particularly on Twitter and Facebook. Fairfax held out on publication of the airline involved until official confirmation was obtained. As it turned out a Qantas plane was involved but it had not crashed. Part of its engine cover had come away and landed on an island, causing a flurry of speculation on Twitter that the jet had crashed. This led to an Indonesian news agency putting out an inaccurate and unsourced story, which in turn led to Reuters putting out a report based on that Indonesian agency’s report. Fairfax held off publishing anything until we had properly sourced information about what had happened. This is responsible journalism. It is also good business and doesn’t require regulation to enforce it. In not publishing the airline in the short term we may have suffered a minor and passing competitive disadvantage but pretty quickly our reputation was enhanced due to our accuracy.


(q) As acknowledged earlier, we do make mistakes and depending on the circumstances, some of the steps we take to address or try to remedy the mistakes include:

i. Providing an opportunity to reply to the story:

ii. publishing letters to editors/reader comments;

iii. publishing apologies, clarifications or corrections; and

iv. providing the services of a readers’ editor or other senior editors engage with reader complaints

Remedies available depend on the nature of the complaint or mistake and the publications ability to verify the facts of the story.

(r) Fairfax strongly opposes any proposal to mandate an entitlement of a right to reply. It is generally good practise for a complainant’s denial of a story to be published but we do not accept the concept that any person who thinks they have been aggrieved has an entitlement to reply in our publications regardless of the possible vexatious nature of the claim. There have been many occasions over the years when a publisher has lost a defamation case because it was unable at the time to establish the truth of the story only to find subsequently that the truth comes out and the story was correct after all.

(s) We do publish corrections when we believe we are wrong, we report the outcome of APC adjudications and court cases which involve our publications.

(t) We receive, and respond to, complaints about editorial coverage on a regular basis. Complaints are generally made via one or other of the following:

• CEO • Publisher • Editor-in-chief • Editor • Senior editor(s) • Letters editor • Readers’ editor • Editor of the particular section • (Assistants to any of the above) • Directly to the journalist • Legal department • Readerlink (in the case of the Sydney Morning Herald and The Sun-Herald)

The process by which we consider and respond to each complaint varies between mastheads. Fairfax values the feedback it receives through the various complaint processes. We know we have an obligation to our readers to be accurate and fair… but we also know this is commercial good sense. We do not need regulation to tell us this.

Below, as an illustration, is set out the processes that one of our key publications – the Sydney Morning Herald - uses to respond to complaints internally.

6 The Sydney Morning Herald feedback mechanism

(a) Readerlink is a phone, email or letter service that gives readers an opportunity to give any feedback relating to the Sydney Morning Herald, The Sun-Herald and their online editions. This service logs complaints and errors reported by our readers. All errors and complaints are promptly brought to the attention of the journalist or section editor (or both), so that they can provide a response.

(b) The complaints and errors are recorded as one of the following: accuracy, advertising, ambiguity of expression, ambiguity of information, bias, circulation issue, editorial judgment (content), extra / missing words, factual (external), grammar, house style, incorrect caption, juxtaposition, layout, legal, missing detail, numeracy, offer /


giveaway, production issue, punctuation, redesign, spelling / typo, style issue, website issue – layout, website issue – technical.

(c) Readerlink aims to provide a response to every reader contact within 24 hours and generally does.

(d) The table set out earlier in this submission shows the data collected by Readerlink from October 1, 2010 to September 30, 2011. During this period, there were a total of 1,765 complaints made about the Sydney Morning Herald and The Sun-Herald. Most complaints relate to minor errors and are resolved in the phone call or email response from Readerlink operators to the reader. Where more serious complaints were made, these were escalated to the Executive Editor, the Editor or Editor-in-Chief.

(e) Set out below is a breakdown of the details around the 1,765 complaints and the sections where the relevant article appeared. The table shows that the top two areas of complaints or errors were editorial judgment (content) representing 32.4% of complaints to Readerlink; and accuracy representing 19.3%

(f) The online complaints very often related to stories that also appeared in print in the paper but the reader only read the story online.

Detail Complaints & Errors

% of total Section Complaint

& Errors % of total

Editorial Judg-ment (content) 571 32.4% Online Site 718 40.7%

Accuracy 340 19.3% News 572 32.4%

Spelling/Typo 247 14.0% Whole Paper 127 7.2% Ambiguity of information 123 7.0% Sport 91 5.2%

Advertising 77 4.4% BusinessDay 62 3.5%

Website issue - technical 61 3.5% The Guide 40 2.3%

Redesign 55 3.1% News Review 32 1.8%

Other 52 2.9% Essential Style 25 1.4%

Grammar 50 2.8% Good Living 20 1.1%

Production issue 48 2.7% Spectrum 19 1.1%

Circulation issue 21 1.2% Special Reports 11 0.6%

Bias 20 1.1% Metro 8 0.5% Website issue - layout 19 1.1% Traveller 8 0.5%

Ambiguity of expression 17 1.0% Domain N/E/I-W 4 0.2%

Layout 14 0.8% Summer Herald 4 0.2%

Numeracy 11 0.6% the(sydney) magazine 4 0.2%

Extra/missing words 10 0.6% Domain Saturday 3 0.2%

Factual (external) 7 0.4% Drive 3 0.2%

Incorrect caption 6 0.3% Money 3 0.2%

House Style 4 0.2% Promotions 3 0.2%

Missing detail 4 0.2% Smart Edition 3 0.2%

Offer/giveaway 2 0.1% Icon 2 0.1%

Punctuation 2 0.1% Advertising 1 0.1%

Style Issue 2 0.1% Drive Life 1 0.1%

Juxtaposition 1 0.1% My Career 1 0.1%

Legal 1 0.1%

TOTAL 1765 TOTAL 1765


(g) The Sydney Morning Herald and Sun-Herald also recently appointed a Readers’ Editor. The Readers’ Editor acts as an independent advocate for readers on issues relating to editorial policy, ethics, standards and editorial performance. The Readers’ Editor also liaises with Readerlink, the Letters Editor and the Executive Editor when queries or complaints come in which she feels the need for a more personal response or which could be aired more widely as a discussion through the Opinion page and on the website. The Readers’ editor also liaises with the reporting and editing staff when a reader feels that the normal channels have not sufficiently addressed their complaint or query.

7 Fairfax Online

(a) Complaints about The Age, Brisbane Times and WA Today websites - received via phone, email or website feedback forms - are sent direct to the online editor to be investigated. All serious complaints receive responses.

(b) Sydney Morning Herald complaints are initially handled by SMH Readerlink. The complaints and required actions are then sent to the appropriate news or sections editor, and the SMH online editor is also notified. Editorial complaints regarding websites are also sent to print section editors if appropriate. All other technical complaints are sent to the Media Tech team to be rectified.

(c) Readers’ complaints are sent a response detailing the action taken. Most common technical complaints concern autoplay on videos, homepage auto refresh, broken links and typographical errors. Editorial complaints range from accuracy to issues of editorial judgment, images and legal complaints.

(d) The data in section 4 shows that there were approximately 1,065 editorial feedback comments. We have taken a conservative view for the purposes of this submission and characterised them as complaints. When reviewing the online data and taking into account that there are approximately 182,000 stories published online per year, the 1,065 editorial feedback comments represent just under 0.59% of the total stories published online. These figures demonstrate the small number of complaints and the high degree of online engagement that exists with our readers.

(e) The extent of online engagement demonstrated in the table below shows that there were approximately 25,000 online comments made during the period January to August 2011 and then annualised. This represents just under 14% of the total 182,000 stories published each year. Editorial feedback was the ninth highest with auto-play being the highest. We are always looking to improve our sites and value the feedback and comments we receive as we are constantly striving to meet our audience preferences.


Reason for feedback Total % of total

Auto-play (video that plays automatically when the story is opened) 3,036 12.14% Unsubscribes – newsletters 2,562 10.25%

PRINT (feedback, place classified, deliveries, ipad/smart edition, shop etc) 1,713 6.85%

General/site queries & feedback (news sites) 1,692 6.77% Other video issues 1,566 6.26%

Forgotten password/login & account issues 1,455 5.82%

General video feedback + editorial 1,257 5.03%

Site issues - inc. browser, display, addons (news sites) 1,089 4.36%

Editorial feedback (news sites) 1,065 4.26% Pre roll ads 951 3.80% Unsubscribes – marketing emails 917 3.67% CLASSIFIEDS (alerts, place ad etc) 729 2.92% App support/query 600 2.40% Cancel digital account 596 2.38% Update digital account details 531 2.12% Competitions & email and site offers (all FD) 513 2.05%

Ad complaints (news sites) 495 1.98% App negative 422 1.69% Broken links/typos (news sites) 389 1.55% Newsletter queries & unspecified unsubscribes 371 1.48% General mobile site feedback/queries/issues 368 1.47%

General mobile site editorial feedback 297 1.19%

OTHER SITE (EB, RSVP, Stayz, FAB, ARP, Tipping, OMG etc) 290 1.16%

Comment feature queries and issues 263 1.05%

TR General + editorial query 255 1.02%

Unsubscribes - DOM-DRV-MYC 182 0.73%

Sign up/Register/Receive newsletters 161 0.64%

Tip offs, send in news, how to get my article published 152 0.61% App request 150 0.60% No flash for you! Ipad and Iphone 123 0.49% Long play TV issues (inc overseas) 110 0.44% General archive help 102 0.41% TR site error 90 0.36% App positive 90 0.36% Copyright queries (all FD) 87 0.35% Stock data out of date/inaccurate/missing code 74 0.29%

Portfolio alert issues/queries inc unsubscribes 72 0.29% Long play TV feedback 66 0.26% Banner query (all FD) 62 0.25% Backcopy requests 30 0.12% Archive before 1990 21 0.08% Frontpage archive query 5 0.02%

Unable to register in TR 5 0.02% Unsubscribes – FBM 5 0.02% News Store refund enquiries 2 0.01% Newsletter format 2 0.01%

TOTAL 25,013

(f) None of the above suggests a perceived serious problem of concern for Fairfax publications.


(g) The current Government's efforts to censor the internet have been patently unsuccessful.

We believe the internet is impossible to regulate and that setting such a task would be expensive and futile. More important are measures to encourage responsible behaviour.

(h) As noted above, Fairfax agrees that the communications and media market should be innovative and competitive, and that Australians should have free access to, and opportunities to participate in, a diverse mix of services, voices, views and information.

(i) To achieve these goals, Australia’s emerging online media market must be regulated appropriately. In particular, Australian content producers and providers must be allowed to develop vigorously, rather than being subject to overly prescriptive regulations that are impractical and expensive to implement, and that place Australian operators at a competitive disadvantage compared to the overseas providers against which they compete. Over-regulation risks driving Australian operators offshore, and Australian consumers to overseas-hosted websites, all of which would compromise the viability of Australia’s online media market.

(j) Any regulation of the online environment should follow general principles of ‘good’ regulation, eg. the Principles of Best Practice Regulation agreed by the Council of Australian Governments.1 Relevantly, the Principles of Best Practice Regulation require:

i. a case for action to be established;

ii. the benefits and costs of a range of regulatory options to be assessed; and

iii. adoption of the option that generates the greatest net benefit for the community.

8 Effectiveness of the Australian Press Council

(a) Fairfax is a member of the APC and provides approximately 24% of its current funding. We subscribe to and endorse the APC’s current Charter of Press Freedom.

(b) When we do make mistakes we aim to correct them. Since the beginnings of the APC Fairfax has supported it with both money and co-operation on adjudications. We subscribe to and endorse the APC’s Charter of Press Freedom as set out below:

Preamble to the Charter of the APC

Freedom of opinion and expression is an inalienable right of a free people. Australia is committed to The Universal Declaration of Human Rights. Article 19 of the Declaration provides: "Everyone has the right of freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers".

In a truly democratic society open debate, discussion, criticism and dissent are central to the process of generating informed and considered choices. These processes are crucial to the formation of values and priorities and help in assessing and finding solutions to social, economic and political problems.

A free press is a symbol of a free people. The people of Australia have a right to freedom of information and access to differing opinions and declare that the following principles are basic to an unfettered flow of news and views both within Australia and across the nation's borders.

1 See: http://www.finance.gov.au/obpr/proposal/coag-requirements.html


APC Principles

i. Freedom of the press means the right of the people to be informed by the press on matters of public interest so that they may exercise their rights and duties as citizens.

ii. The press shall not be subject to government licence and government authorities should not interfere with the content of news nor restrict access to any news source.

iii. The press has a responsibility to the public to commit itself to self-regulation which provides a mechanism for dealing with the concerns of members of the public and the maintenance of the ethical standards and journalistic professionalism of the press.

iv. It is in the public interest for the press to make available to the people a wide diversity of views and opinions.

v. It is the responsibility of the press to protect the people's right to know and to contest encroachments upon that right by governments, groups or individuals.

vi. Laws, regulations and practices which in any way restrict or inhibit the right of the press freely to gather and distribute news, views and information are unacceptable unless it can be shown that the public interest is better served by such laws, regulations or practices than the public interest in the people's right to know.”

(c) We believe that the APC’s focus should be on efficient and speedy complaints handling. The APC was set up by publishers to provide a quick, cheap and effective complaints mechanism as an alternative to more formal legal remedies and to the court processes. This continues to be a valuable set of attributes. The APC also provides a forum to resolve disputes which may not be legal in nature.

(d) The APC should continue in this role of complaint handling, developing standards and issuing statements of policy around good media practice. For the avoidance of any doubt, we believe the objects should clearly include digital platforms.

(e) Fairfax has extensive experience in dealing with the APC both as a member and in response to complaints. Aggrieved readers of publications have three broad options open to them:

i. First, they can approach the publication and try and obtain a correction, clarification or opportunity to reply; or,

ii. Second, they can make a complaint to the APC. iii. Third, they can initiate legal proceedings against the publication

(f) Assuming our own internal systems have not resolved a complaint to the satisfaction of the complainant, we support the APC being a faster and more cost-effective alternative to the court system, one which is accessible to all. Fairfax is not fundamentally opposed to a referral panel within the APC process.

We oppose the introduction of monetary or other penalties because this will almost inevitably lead to the requirement of an appeals mechanism which would not be conducive to a quick and cheap outcome. In our view this will undermine the main goal of the APC.

(g) Membership: It is our view that membership of the APC must remain voluntary. To base any proposed statutory protections or exemptions currently afforded to journalists or their employer being a member of the APC is untenable. It amounts to registration of journalists which has been an unacceptable intrusion into freedom of speech for centuries in open societies.

(h) Recently the NSW Crime Commission was seeking to extract from our journalists the source for articles in the Sydney Morning Herald. If the APC were to have broader sanction powers and if it made an adjudication that Fairfax must give this source to the NSW Crime Commission and Fairfax did not do so, the APC may potentially expel Fairfax from membership. This would have the effect of withdrawing the existing statutory protections and exemptions. The APC should not have the ability to interfere with these fundamental rights. These should be dealt with only through the legal system.


(i) Funding: Since most APC funding is currently provided by the major publishers, we acknowledge that it is limited. At the same time, any proposed Government funding would need to be treated with much trepidation. We are strongly opposed to the Government having any further ability to make decisions or influence the operations of the media.

(j) Sanction powers: The current powers of the APC are generally appropriate. The extent of the sanction powers to the APC should be limited to adjudicating and making recommendations for corrections or apologies. The legal system is in place to ensure proper process for any serious breaches or alleged illegalities. The APC relies on its members willingly cooperating to find a solution to a complaint.

(k) Fairfax is concerned that too much time is spent following up trivial issues before the APC. In the past we have had to present at hearings about matters as inconsequential as whether “the film critic” mentioned in an obituary implied that the person in reference was the only or senior critic (which he was not). This involved wasted hours for both the APC and The Age.

(l) The APC needs to focus on substantial matters and quickly dispose of vexatious complaints or matters from serial complainants.

(m) Broadly speaking, we understand that the APC submission in this Inquiry considers:

i. increased APC funds, Government and other non-media organisation funding;

ii. increased prominence and visibility of the APC;

iii. systemic monitoring of compliance;

iv. proactive and investigate role;

v. a referral panel;

vi. compulsory membership – non members do not qualify for privacy law exemptions and perhaps other statutory protections; and

vii. other stronger sanction powers.

(n) Fairfax is not opposed to more resources and funds for the APC although resources are limited everywhere. More prominence and visibility is also something we would be willing to assist with through our publications and websites. We are, however, strongly opposed to any compulsory membership and linking statutory protections or exemptions to that membership. Further, the provision of more sanction powers or creating a statutory authority under the auspice of the APC is fundamentally rejected by Fairfax.

9 Business model considerations

(a) No one can deny that the traditional media business models have been severely challenged by the growth of the internet. That said Fairfax does not support the proposition that independent journalism needs assistance by way of Government subsidy or tax breaks as have been suggested by some submissions. It is unbecoming for the media to claim the need for independence from the Government on one hand but ask for financial assistance on the other.

(b) We are confident that strong independent journalism has a very healthy and vibrant future.

(c) It is well known that the traditional classified print business model has essentially ended. The “rivers of gold” era is long over. Our focus is now on audiences rather than platforms. On a weekly basis, Fairfax has in excess of 6.7 million unique audience members across print and digital. This does not include our radio stations. Fairfax has the largest news media reach in Australia.

(d) Media organisations need to transform themselves to account for the changing needs of audiences as the digital and online platforms continue to evolve. Existing revenue streams need to grow and new revenue sources need to be found and sustained.


(e) If we want to retain our audiences and financial future, we must continue to ensure high editorial standards and quality journalism. The Fairfax strategy for growth has journalism at its core and is demonstrably working. We launched our digital business in 1995 with smh.com.au and theage.com.au. That’s two years before Google and years before our major competitor in this market, News Ltd, went online.

(f) Fairfax websites were the first news sites in Australia. And the most successful. A position we still hold today. This clearly marks us as very different from our American counterparts where online news media leadership was captured by others such as Yahoo, CNN and the television networks. We embraced the internet and by putting our journalism on the net for free we effectively turned a large print audience into a larger digital audience. This was absolutely the right move.

(g) We were however much less successful in translating our classified position. We tried to both defend print and grow digital classifieds. We did well in real estate with domain.com.au. And we still have positions in jobs and cars.

(h) But by and large the newspaper companies defensive tactics didn’t work well and resulted in the success of Seek and Carsales in Australia.

(i) Ten years ago Fairfax had 65 percent of its revenues dependent on the metro classifieds. It was a real question whether it could survive without them.

(j) The question was whether an experienced and professional fourth estate, so critical in making sure the power structures in our community were made accountable, was about to fall and be replaced with a fragmented, undifferentiated world of blogs.

(k) Fortunately good journalism has proven it has the capacity to adapt. The issue was straightforward – can a traditional newspaper based media company remake its business model? Fairfax has no doubt it is doing just that and the evidence supports this. The way the business model is being remade and is prospering is relatively simple:

i. Produce compelling journalism, create audiences, take 85 percent of revenue from advertising, 15 percent from subscriptions and cover price and drive traffic to transaction sites.

ii. Integrate sales – print, online, smartphones, tablets, iptv.

iii. Cut costs. We spend nearly $500 million just producing the papers - printing and distribution. We now take largely branding advertising focused at consumers so we don’t need to broadly distribute as we once did. We are deliberately reducing circulation. And we will use the money to lift profits and invest in journalism

(l) Fairfax has a greater readership than it has ever had up 30 percent in five years – way larger than the good old days of 30 years ago.

(m) Last year print advertising yield went up 2 percent in a very difficult market. Online grew 16 percent. Advertisers have demonstrated that they want a quality market of engaged readers and know it does not matter whether they reach them in print or online.

(n) Readers want journalism in a variety of formats. Print circulation is an outdated and nearing irrelevant form of measurement in the world media companies now inhabit.

(o) The story is about readership and what drives it and who the readers are. The statistics tell a powerful story.

(p) In the newer delivery platforms – applications for Smartphones and Tablets – we are achieving astonishing penetration. More than 2 million Fairfax apps have been downloaded on smartphones, while tablet apps for the Sydney Morning Herald and The Age have been downloaded by more than 300,000 readers.

(q) Our smh.com.au website is the nation’s leading digital newspaper masthead, topping 3 million readers in September – and that counts each visitor to the site only once, even if they logged on during the month from different computers at home and work, or on the move. The Age website reached 2.3 million readers during September.


(r) Importantly, we are not only attracting more readers – our readers find plenty that interests them on our sites. Visitors to smh.com.au spent more than 45 minutes, on average, on the site during the month of September.

(s) Media buyers and planners understand this and prices for online ads are rising.

(t) As you can see from the above graphic we have to meet our readers – our audiences needs when they want to be met – which now is 24/7.

(u) And in this crowded chaotic environment you have to provide the best, independent news and analysis all the time. It is all about trust and our results will prove it.

10 Conclusion

(a) As this submission has shown, Fairfax Media is committed to a free and independent press - a vital ingredient of the Australian democratic landscape. There is no place for Government intervention.

(b) Quality, independent and responsible journalism is the bedrock of Fairfax. It is our creed. It is what we do. It is what we sell.

(c) We do make mistakes. We admit to them. We correct them. We have procedures and practices in place to minimise them. It is in our interests to do this.

(d) We engage with our audiences every day, in every way - on multiple platforms. Our audiences are growing. They are bigger now than they have ever been. This relationship is based on trust.

(e) The media is already heavily regulated. There are scores of legislative restrictions on what the press can and can't do, write or say. And then there is the APC.

(f) The APC was created to provide an efficient and effective alternative to costly legal proceedings. It has, sadly, evolved to become a forum for often trivial and vexatious complaints.

(g) We see encouraging signs that the APC understands the need for reform. We will support the APC in this regard and agree it should have greater visibility and prominence as a self-regulatory body.

(h) We do not support, however, the proposition of linking membership of the APC with any statutory protections afforded to journalists and their employers.


(i) We see no evidence of problems that cannot be dealt with through existing systems and structures.

(j) We do concede the press business model is under transformation. We look forward to continuing to meet the changing needs of our audiences in all of our multi media platforms. Again, we do not seek nor would we support Government intervention in these matters.

(k) We believe the press must remain free to fulfil its responsibilities to the public good and that its future prosperity and success lies in its own hands.

(l) Now is the time to recognise and embrace the opportunities ahead for a free, unfettered press and the audiences it serves.

Contact: Gail Hambly, Group General Counsel & Comp any Secretary Fairfax Media Limited 1 Darling Island Road, Pyrmont NSW 2009 Tel. +61 2 9282 1674 Email. [email protected]


Annexure A – Fairfax Media Limited Code of Conduct (attached)


Annexure B – Sydney Morning Herald and Financial Re view Group Editorial Ethics Policies (attached)

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FAIRFAX CODE OF CONDUCT Introduction The Fairfax Code of Conduct aims to:

• provide clear guidance on the company’s values and expectations while acting as a representative of Fairfax

• promote a common minimum standard of ethical behaviour, standards and expectations across the group, all business units and locations

• offer guidance for shareholders, customers, readers, suppliers and the wider community on our values, standards and expectations, and what it means to work for Fairfax

• raise employees awareness of acceptable and unacceptable behaviour and provide a means to assist in avoiding any real or perceived misconduct.

We are likely to be faced with situations that are not specifically addressed in this code. When dealing with these, we can ask ourselves the following questions to assist us in determining an appropriate course of action:

• Would I be proud of what I have done? • Is it legal? • Is it consistent with Fairfax’s values, principles and policies?

• Do I think it’s the right thing to do? • What will the consequences be for my colleagues, Fairfax, other parties, and

me? • Are my actions transparent? Is there anyone else who I should make aware

of my actions? • What would be the reaction of my family and friends if they were to find out? • What would happen if my conduct was reported in a rival publication? • What would be the impact if rumours started with our stakeholders or

employees that Fairfax was engaged in this practice? • Do my actions put anyone's health and safety at risk?

The Code of Conduct, detailed in the following pages, is written as a set of general principles in employment and should be read in conjunction with the current Code of Ethics for each masthead and all Fairfax policies as amended from time to time. All policies can be found on the Fairfax Intranet or a copy obtained from HR Services. Fairfax journalists will continue to perform their editorial duties within the ethical framework set down in their masthead and journalistic professional code of ethics.

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2 Business Integrity 2.1 Honesty, Integrity & Fairness We endeavour to perform our duties and conduct business in a manner that is honest and of the highest integrity. We strive to maintain our business relationships in a manner which are consistent with principles of respect for others and fairness. We aim to maintain standards that exceed community expectations. 2.2 Reporting Concerns Fairfax is committed to fostering an environment where concerns can be reported without fear of punishment. We will treat all reports seriously and will act appropriately and promptly. 2.3 Public Comment As employees, we will not disclose publicly any information about the company, or make public comment on behalf of Fairfax, or using Fairfax facilities or equipment, unless required as part of our normal work or as specifically approved by the Corporate Affairs Manager. If we are contacted by the media we will refer this to the Corporate Affairs Manager. 2.4 Conflict of Interest We will disclose any real or potential conflicts of interest when dealing with family, friends, or other related parties or entities on behalf of the company. We will make our interests known and seek approval before contracting with any of these parties. 3 Professional Practice 3.1 Fairfax Shares Employees and directors of Fairfax have the opportunity to share in the company’s growth through share equity plans as well as buying company shares in their own right. We understand that being a company shareholder brings a responsibility to comply with the laws governing companies and employees who own shares. These laws do not allow anyone with “inside information” to: • Trade in Fairfax shares based on this information • Influence another person to trade in Fairfax shares • Communicate information to someone they believe is likely to trade in Fairfax

shares. 3.2 Financial Interests Fairfax employees should avoid taking a specific financial interest, or participating in financial activities and arrangements, that could conflict with their obligations of fairness and integrity to the company or its stakeholders, or that could be perceived

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to do so. Editorial employees will maintain an up-to-date file of their interest in any securities. In addition, financial journalists will maintain a more detailed register and will disclose this in accordance with corporations legislation and relevant masthead policies. 3.3 Property & Ownership We take responsibility for the protection and care of company assets including • cash, corporate cards & vouchers; • plant and equipment, eg. cars or machinery; • company information; • Fairfax products & publications; • computers and software; • intellectual property (eg copyright, trademarks, patents, registered designs and

the right for the company to have its confidential information kept confidential) We ensure that our actions in relation to company property are honest at all times. If we believe that theft or damage is taking place in the workplace we will report it immediately to our manager or HR representative. To avoid any misunderstanding of our behaviour we should remember to always:

• seek permission from a senior manager to take company property from the

workplace and ensure its removal is documented and authorised; • always use company property for what it was intended and not for personal use

unless authorised; • never assume that damaged stock or goods is not wanted or not valuable to the

company. • return all company assets when leaving the organisation. We also ensure that we comply with our obligations in relation to intellectual property owned by third parties. 3.4 Privacy & Confidentiality We understand that as Fairfax employees we are placed in a position of trust and are regularly privy to sensitive information. We strive to operate in accordance with the relevant privacy legislation. We undertake to handle such information in a confidential and sensitive manner and not use this information for personal gain, or to share this information either during or after our employment with Fairfax unless required as part our normal work. We will under no circumstances discuss or disclose any confidential Company information. This information includes marketing or strategic plans, pricing, policy, costs and stories. If we are unsure of whether or not a particular piece of information is confidential we will check with the source.

Sometimes it is necessary to undertake to editorial sources that their identity will remain confidential. We are committed to protecting these sources. We will strike a

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balance between the right of the public to information and the right of individuals to privacy. We will not exploit the vulnerable or those ignorant of media practices. 3.5 Other Employment We will obtain written permission from our manager before undertaking work with another organisation.

3.6 Personal Advantage As Fairfax employees, we will not abuse any benefit or advantage that is not afforded to the public or part of any company sanctioned benefit. Such advantages include discounts, priority bookings, access to venues, retail or wholesale sales, restaurant bookings, real estate queues and upgrading of goods or services.

3.7 Gifts and Inducements We will not accept gifts or inducements which could impair our judgement or be perceived to be a conflict of interest, bribe or inappropriate gift. Similarly we will not offer bribes or inappropriate payments for the purpose of acquiring, retaining, directing business, or receiving any kind of special or favoured treatment for the company.

3.8 Recruitment and Selection

Our commitment to attracting the best talent is reflected in our rigorous recruitment and selection processes, which are based on merit. Our recruitment policies and procedures reflect this commitment.

3.9 Company Reporting We are committed to producing complete, balanced, timely, accurate and truthful company data, records and reports. We will be transparent and ensure that issues are raised to an appropriate level on a timely basis.

4 Health, Safety & Environment Fairfax aims to provide a safe, healthy, injury free and environmentally sustainable business. We aim to carry out our business activities in a manner consistent with applicable health, safety, and environmental laws and regulations for the wellbeing of the environment and our employees, contractors, visitors and customers. We will endeavour to be aware of and follow all Health, Safety and Environment policies and procedures. 5 Equal Employment Opportunity and Anti-Harassment Fairfax aims to provide a work environment free from unlawful discrimination and harassment in employment related matters. The company has EEO, Anti-Harassment and Bullying policies and will operate in accordance with related legislation.

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6 Compliance with Company Policies We will comply with all Company policies as amended from time to time. 7 Implementation and Compliance of this Code of Conduct 7.1 Questions If we have any questions about a matter or issue we should consult with our manager or HR representative. For confidential advice, we can contact a counsellor via our Employee Assistance Program. 7.2 Reporting We will report all breaches of this Code of Conduct immediately to our manager or a HR representative. If they are not available, and the matter is serious, we may contact the appropriate representatives as outlined below. The contacts listed below will only be used in instances where the matter is serious, and involves financial malpractice, impropriety or fraud, auditing matters, including non-disclosure or any subversion of the internal or external audit processes or criminal activity or breaching of the law. 1. Manager, Internal Audit 2. Group General Counsel (Legal) 3. Chief Executive Officer 4. Chairman of the Board Individuals making complaints in good faith will be protected by this code of conduct, however, we understand that disciplinary action may be taken where an allegation is malicious or vexatious. 7.3 Non-Compliance We acknowledge that non-compliance may lead to disciplinary action. Examples of relevant disciplinary action include verbal or written warnings, counselling on misconduct, suspension (with or without pay) and dismissal.

FAIRFAX EDITORIAL ETHICS POLICY

Our editorial management shall be conducted upon principles of candour, honesty and honour. We have no wish to mislead; no interest to gratify by unsparing abuse – or indiscriminate approbation. The Sydney Morning Herald, April 18, 1831

These values, set out in the Herald's first editorial, have guided the paper for more than 170 years. Our most valuable asset is our integrity, and it is this that the code is designed to protect.

The code reflects the Fairfax group’s corporate values statement and incorporates the code of ethics of the Australian Journalists Association.

It is to apply to the editorial staff of The Sydney Morning Herald and, where relevant, its casual employees, freelancers and contributors. In interpreting and applying the code, the interests that shall always be paramount are those of the public. Community values evolve, and the code will be reviewed from time to time to ensure it reflects what our readers expect of us.

HONESTY Herald staff will report and interpret honestly, striving for accuracy, fairness and disclosure of all essential facts. They will not suppress or distort relevant facts. They will do their utmost to offer the right of reply, and they will separate comment from news.

IMPARTIALITY Staff will not allow personal interest, or any belief or commitment, to undermine their accuracy, fairness or independence.

FAIRNESS Staff will use fair, honest and responsible means to obtain material. They will identify themselves and the newspaper before obtaining interviews or images.

INDEPENDENCE Staff will not allow advertising or other commercial considerations to undermine accuracy, fairness or independence, or to influence the nature of the Herald's coverage. Advertising copy which could be confused for editorial should be marked "special promotion."

PRIVACY Staff will strike a balance between the right of the public to information and the right of individuals to privacy. They will recognise that private individuals have a greater right to protect information about themselves than do public officials and others who hold or seek power, influence or attention. They shall not exploit the vulnerable or those ignorant of media practices.

RESPECT Staff will respect private grief. They have the right to resist pressure to intrude.

RELEVANCE Staff will not place unnecessary emphasis on personal characteristics, including race, ethnicity, nationality, gender, age, sexual orientation, family relationships, religious belief or physical disability.

PLAGIARISM Staff will not plagiarise.

ATTRIBUTION Staff will seek to attribute information to its source. They will always declare the use of pseudonyms in their work. They will seek to avoid being compromised by a source and to use multiple sources wherever possible. Where a

source seeks anonymity, the journalist shall first consider the source's motives and seek alternative attributable sources. Quotes not attributed to a named source will be used only with a section editor's approval. Where confidences are accepted the journalist will respect and protect them in all appropriate circumstances.

HONEST PRESENTATION Staff will present pictures and sound that are true and accurate. They will disclose manipulation that could mislead.

COMPLAINTS AND CORRECTIONS Complaints shall be dealt with promptly and respectfully. Material errors in the paper and its related publications will be corrected or clarified publicly as soon as is practicable. Findings by the Australian Press Council or the defamation courts involving the Herald will be reported promptly.

PUBLIC ACTIVITIES Herald staff shall avoid any prominent activity in partisan public causes that compromises, or appears to compromise, the journalist or the newspaper. Membership of organisations or activity that may compromise the journalist's or the paper's reputation shall be declared to their section editor. Those responsible for coverage of news, current issues and opinion shall not be members of a political party nor stand as a candidate in an election for public office.

Staff shall not produce material for use in the paper or its related publications when they are a member of an organisation with an active interest in that issue.

Columnists and contributors writing on an issue where they have a direct or indirect interest are to declare that interest to readers after receiving approval from their section editor to write on that topic.

If it is possible that the activities of a member of a journalist's immediate family may compromise the journalist or the Herald, the staff member shall inform their section editor.

FINANCIAL INTERESTS Herald staff shall avoid taking a specific financial interest, or participating in financial activities and arrangements that could conflict with their obligations of fairness and integrity, or that could be perceived to do so.

They will avoid writing about issues in which they have a financial interest, either directly or through their immediate family. If they do write about such issues they shall first obtain permission from their section editor, and that interest will be declared where their section editor deems it necessary.

Staff shall maintain an up-to-date file of their interest in any securities. A register of such files will be maintained by the editor-in-chief.

In addition, the Corporations Act 2001 requires financial journalists to maintain a more detailed register and to disclose their register to the Australian Securities and Investments Commission, and it is the journalists' responsibility for doing so.

Staff responsible for stories about securities of public companies shall not trade shares or other financial products within three months of acquiring them, except with the permission of their section editor.

ENDORSEMENTS Staff shall not give paid endorsements for any product, service, political party or other lobby, nor shall they provide advertising copy, public relations services or media training on a commercial basis.

CONTESTS Staff will submit work only to contests whose central purpose is to recognise journalistic excellence, and not to competitions designed primarily to promote a product, an industry or a lobby. The decision on which competitions are entered will be made by the editor or the editor-in-chief.

CHEQUE-BOOK JOURNALISM No payment shall be proffered to sources for interviews or access.

PERSONAL ADVANTAGE Those working for the Herald shall not use their position with it to seek any benefit or advantage not afforded to the public. Such advantages include discounts, priority bookings, access to venues, retail or wholesale sales, restaurant bookings, real estate queues and upgradings.

GIFTS Gifts shall not be accepted, other than those of a small and inconsequential nature. Those known or estimated to be worth more than $20 will be donated to charity.

HOSPITALITY Staff shall ensure that accepting hospitality does not oblige them or the Herald to their hosts. Invitations to attend a lunch or dinner should be repaid where possible. Accepting invitations for corporate hospitality where the purpose of the visit or the event is to develop contacts will be permitted, but staff shall inform their section editor before accepting such invitations.

TRAVEL AND ACCOMMODATION This policy is based on two principles: trust in the honesty and integrity of our journalists and transparency with our readers and advertisers.

1. The Herald will not accept free or subsidised travel except in circumstances where the editor is satisfied that neither the journalist nor the Herald will be compromised.

2. Only the editor or deputy editors may approve offers of free or subsidised travel, accommodation or other benefits.

3. Acceptance of any such offer is conditional on the Herald being free to assign a writer/photographer of its choice.

4. Acceptance of any such offer is based on the Herald being free to publish, unconditionally, any article it deems appropriate as a result of the assignment. The Herald also reserves the right not to publish an article or images.

5. On publication of such articles, the Herald will disclose when an airline, hotel or other interest has borne the cost of transporting or accommodating a journalist.

6. No journalist will be asked to undertake an assignment involving free or subsidised travel and accommodation if she or he is reluctant to do so.

7. All casual employees, freelancers and contributors will be subject to the code when on assignment for the Herald and will be asked to declare all relevant circumstances under which a story has been obtained.

8. No casual employee, freelancer or contributor shall represent themselves as working for the Herald without an express commission.

9. This policy will be made available to readers both in print and online.

TICKETS AND EVENTS Staff shall not solicit tickets. Complimentary tickets may only be accepted by a staff member who is covering or reviewing that event. Sports journalists may also accept tickets for events for which they are accredited, as may reviewers for events that are designated as media only (for example, media screenings of films). All other tickets will be paid for.

WORKING FOR OTHERS Staff journalists wishing to undertake outside work shall first seek the approval of their section editor. They shall not work for direct competitors. Staff offering work to other publications, or seeking, or being offered, commissions from them, will first ascertain that the Herald does not wish to publish the work.

Staff having their work published elsewhere shall require an acknowledgment that they work for the Herald, if it so wishes. Where the Herald does not want such acknowledgment, the journalist shall ensure its wish is met. Such work must not compromise this code, or other Herald standards.

Staff shall provide the editor or the editor-in-chief with an annual register of their regular paid outside work.

Staff wishing to accept or undertake speaking engagements, or to represent the paper in other media outlets, shall first seek approval from their section editor. Before undertaking such activities, staff shall satisfy themselves that in doing so they are not compromising themselves or the Herald.

CASUAL EMPLOYEES, FREELANCERS AND CONTRIBUTORS All casual employees, freelancers and contributors shall abide by this code when on assignment for the Herald and should avoid any conflict of interest which would harm the integrity of the Herald.

They shall declare to the Herald all relevant circumstances under which a story has been written or edited or any other conflicts which should be disclosed.

For Herald commissions they shall not accept materially subsidised travel or accommodation.

No casual employee, freelancer or contributor shall represent themselves as working for the Herald without an express commission from it.

FINANCIAL REVIEW GROUP EDITORIAL ETHICS POLICY

This code applies to the editorial staff of The Australian Financial Review, including all AFR branded magazines and BRW (collectively known as “The AFR”) and, where relevant, casual employees, freelancers and contributors The code reflects Fairfax Media’s corporate values. In interpreting and applying the code, the interests that shall always be paramount are those of the public. Community values evolve, and the code will be reviewed from time to time to ensure it reflects what our readers expect of us. Honesty AFR journalists will report and interpret honestly, striving for accuracy, fairness and disclosure of all essential facts. We will not suppress or distort relevant facts. We will do our utmost to offer the right of reply, and we will separate comment from news. Impartiality AFR journalists will not allow personal interest, or any belief or commitment, to undermine our accuracy, fairness or independence Fairness AFR Journalists will use fair, honest and responsible means to obtain material. We will identify ourselves and the newspaper before obtaining interviews or images. AFR journalists will use all available communication methods (telephone, email, texting, facsimile, registered letter) to contact people and allow a right of reply. This is specifically required for articles which have potential legal issues (e.g. possible defamation) Independence AFR journalists will not allow advertising or other commercial considerations to undermine accuracy, fairness or independence, or to influence the nature of the AFR’s coverage. Advertising copy which could be confused for editorial will be marked “special promotion”. AFR journalists should acknowledge the commercial purposes of contemporary public relations practices. Working relations with public relations advisors (internal or external) should be aimed solely to provide direct access to primary sources. Any other PR should be treated as a commercial purpose similar to advertising. Privacy AFR journalists will strike a balance between the right of the public to information and the right of individuals to privacy. We will recognise that private individuals have a greater right to protect information about themselves than do public officials and others who hold or seek power, influence or attention. We shall not exploit the vulnerable or those ignorant of media practices Respect AFR journalists will respect private grief. We have the right to resist pressure to intrude. Relevance AFR journalists will not place unnecessary emphasis on personal characteristics, including race, ethnicity, nationality, gender, age, sexual orientation, family relationships, religious belief or physical disability. Plagiarism AFR journalists will not plagiarise.

Attribution AFR journalists will seek to attribute information to its source. We will always declare the use of pseudonyms in our work. We will seek to avoid being compromised by a source and to use multiple sources wherever possible. Where a source seeks anonymity, a journalist will first consider the source’s motives and seek alternative attributable sources. Quotes not attributed to a named source will be used only with a section editor’s approval. Where confidences are accepted, the journalist will respect and protect them in all appropriate circumstances. AFR journalists are required to secure primary sources where possible, and limit the use of spokespeople. Honest Presentation AFR journalists will present pictures and sound that are true and accurate. We will disclose manipulation that could mislead. Responsible use of Financial Information AFR journalists will manage sensitive share price information cautiously and responsibly, demonstrating respect for our sources as well as the law. AFR journalists will avoid any external communication of potentially price sensitive information during the ASX trading hours. This may require telephone calls, emails etc. being sent outside ASX trading hours for the purposes of confirming or corroborating information. Newsroom Confidentiality AFR reporters will not externally communicate the planned content of AFR articles – either their own, or another reporter's – prior to publication. AFR content should be treated as confidential until publication. Reporters will not outline the content of an article to be published – apart from an agreement to read back direct quotes – prior to publication. The communication of planned content by any AFR editorial employee in breach of this policy may lead to termination of employment. Complaints and Corrections Complaints shall be dealt with promptly and respectfully. Material errors in the paper and its related publications will be corrected or clarified publicly as soon as practicable. Findings by the Australian Press Council or the defamation courts involving AFR will be reported promptly. Public Activities AFR journalists shall avoid any prominent activity in partisan public causes that compromises, or appears to compromise, the journalist or the AFR. Membership of organisations or activity that may compromise the journalist’s or the AFR’s reputation, shall be declared to the Editorial Director. Those responsible for coverage of news, current issues and opinion, shall not be members of a political party, nor stand as a candidate in an election for public office. AFR journalists will not produce material for use in the AFR when they are a member of an organisation with an active interest in that issue. Columnists and contributors writing on an issue where they have a direct or indirect interest are to declare that interest to readers after receiving approval from the Editorial Director to write on that topic. If it is possible that the activities of a member of an AFR journalist’s immediate family may compromise the journalist or the AFR, the staff member shall inform the Editorial Director. AFR journalists will only use digital media and social networking sites, including Facebook, Twitter, blogs, wikis, forums and other websites that invite community participation, in a strictly personal capacity. AFR journalists will not deliberately seek to represent the views of the AFR on these sites or forums, and will not engage in political, economic or cultural debates in a manner seen by the Editorial Director, to compromise the journalist’s integrity and ethics, as outlined in this document. This policy applies to journalists who use personal social media channels, such as Facebook, Twitter, FriendFeed or blogs, to promote URLs that link directly to content published on AFR or FRG websites. AFR journalists will not republish AFR or FRG content on digital media or social networking sites, or use these sites to discuss unpublished or forthcoming material the Editorial Director deems competitively sensitive. Financial Interests AFR journalists shall avoid taking a specific financial interest, or participating in financial activities and arrangements, that could conflict with our obligations of fairness and integrity, or that could be perceived to do so.

We will avoid writing about issues in which we have a financial interest, either directly or through our immediate family. If we do write about such issues, we shall first obtain permission from the Editorial Director or their nominee, and that interest will be declared where the Editorial Director deems it necessary. Staff shall maintain an up-to-date file of interests in any securities. A register of such files will be maintained by the Editorial Director in a confidential file. Staff responsible for stories about securities of public companies and/or derivatives, or other financial products, shall not trade shares or other financial products, within three months of acquiring them, except with the permission of the Chief Executive Officer, FRG. Any breach of this three month rule will lead to termination of employment. Endorsements AFR journalists will not give paid endorsements for any product, service, political party or other lobby, nor shall we provide advertising copy, public relations services or media training on a commercial basis. Contests AFR journalists will submit work only to contests whose central purpose is to recognise journalistic excellence, and not to competitions designed primarily to promote a product, an industry or a lobby. The decision on which competitions are entered will be made by the Editorial Director, or their nominee. Cheque-Book Journalism No payment shall be proffered to sources for interviews or access. Personal Advantage AFR journalists shall not use our position to seek any benefit, or advantage not afforded to the public. Such advantages include discounts, priority bookings, access to venues, retail or wholesale sales, restaurant bookings, real estate queues nor upgrades. Gifts Gifts shall not be accepted, other than those of a small and inconsequential nature. Those known or estimated to be worth more than $100 should be disclosed to the Editorial Director, who will determine whether it will be donated to charity. Hospitality AFR journalists will ensure that accepting hospitality does not oblige them or the AFR to our hosts. Invitations to attend a lunch or dinner should be repaid where possible. Accepting invitations for corporate hospitality, where the purpose of the visit, or the event, is to develop contacts, will be permitted. However, staff shall inform the section editor before accepting such invitations. Travel and Accommodation This policy is based on two principles: trust in the honesty and integrity of AFR journalists, and transparency with our readers and advertisers.

1. The AFR will not accept free or subsidised travel, except in circumstances where the Editorial Director is satisfied that neither the journalist, not the AFR will be compromised.

2. Only the Editorial Director or deputy editors may approve offers for free or subsidised travel, accommodation or other benefits.

3. Acceptance of any such offer is conditional on the AFR being free to assign a writer/photographer of its choice.

4. Acceptance of any such offer is conditional on the AFR being free to publish, unconditionally, any article it deems appropriate as a result of the assignment. The AFR also reserves the right not to publish an article or images.

5. On publication of such articles, the AFR will disclose when an airline, hotel or other interest has borne the cost of transporting or accommodating a journalist.

6. No AFR journalist will be asked to undertake an assignment involving free or subsidised travel and accommodation is he/she is reluctant to do so.

7. All casual employees, freelancers and contributors will be subject to the code when on assignment for the AFR, and will be asked to declare all relevant circumstances under which a story has been obtained.

8. No casual employee, freelancer or contributor shall represent themselves as working for the AFR without an express commission.

Tickets and Events AFR journalists shall not solicit tickets. Complimentary tickets may only be accepted by the journalist who is covering, or reviewing the event. Journalists may also accept tickets for events for which we are accredited or designated as media only. All other tickets will be paid for.

Working for Others

1. No full time AFR journalists are permitted to undertake work outside the FRG, including: Books; or 2. Conferences, other speaking engagements, editing, speeches, media training or editorial services.

This prohibition may be waived at the discretion of the Editorial Director. AFR journalists employed on a part time basis wishing to undertake outside work, shall first seek the approval of the Editorial Director. Before seeking such approval, staff shall satisfy themselves that in doing so, they are not compromising themselves or the AFR. Part time staff offering work to other publications, or seeking, or being offered commissions from them, will first ascertain that the AFR does not wish to publish the work. Where authorised work is published elsewhere, if the Editorial Director so wishes, the AFR can require an acknowledgement that the journalist works for the AFR. Where the AFR does not want such acknowledgement, the journalist shall ensure its wish is met. Such work must not compromise this code, or other AFR standards. Under no circumstances will AFR journalists work for direct competitors. Contributors to the AFR may only do so where this is expressly permitted by their commissioning editor, pursuant to a duly executed Contributor Agreement. Casual Employees, Freelancers and Contributors All casual employees, freelancers and contributors shall abide by this code when on assignment for the AFR, and should avoid any conflict of interest which would harm the integrity of the AFR. Casual employees, freelancers and contributors shall declare to the AFR all relevant circumstances under which a story has been written or edited, or any other conflicts which should be disclosed. No casual employee, freelancer or contributor shall represent themselves as working for the AFR without an express commission from it.

november 2011 fairfax media limited - the sydney morning...

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