Murdoch Case Essay

3561 words - 14 pages

Student Numbers: z3401738 - z3448730 - z3269051 - z3436762Course Code : MGMT5050UK Phone Hacking ScandalPART A: CASE STUDYThe phone hacking scandal of News of the World (NoW) is perhaps so far the biggest press crisis in Britain. This criminal culture has become clear since July 2011 and has created widespread public controversy which threatened the presence of Rupert Murdoch's global media conglomerate (Bernstein 2011). More importantly, the scandal has attracted the worldwide attention to the corrupted corporate culture that uncovers the actual fact behind the success of NoW, an media organization that had been in manufacture since 1843. Initially, the worth point is that the phone hacking scandal calls for investigating and self-examining the ethics throughout the media industry, which influenced widely on the whole UK society. In other words, it represents an example of where moral and ethical boundaries have been crossed and the poor ethical framework in corporation decision making process. Moreover, this case also reveals the illegal action of hacking into the phones of politicians, celebrities, the royal family members, and ordinary people that Rupert Murdoch, CEO of News Corporation, and his employees were accused of, which had been done for such a long time (Bergstrom 2011). Second, the scandal not only highlights the management style of organization in relation to social responsibilities of an entity to all stakeholders on the use or misuse of information and technology but also the leadership in NoW, especially the concentration of power within Rupert Murdoch's media empire.In respect of the whole context of the phone hacking scandal, Rupert Murdoch, the CEO of News Corporation, underwent a heavy blow in his media career and made the decision to stop the production of NoW on July 10,2011 which controlled between 65% and 70% of the press market (Manne 2012). The phone hacking scandal first began in 2002 with the event of a missing British teenage girl, named Milly Dowler. In the days of her disappearance, NoW hired an investigator to hack into the voicemails of Dowler's cell phone and deleted her messages for news. Furthermore, NoW hacked into the voice mails of the families of victims who died in a terrorist bombing attack in London in 2005 and families of UK soldiers who died in Afghanistan and Iraq war (Kellner 2012). In 2011, the investigation of phone hacking scandal began and it came to public that more than 4,000 people were being hacked into their personal information.The stakeholders in this scandal are the managers, employees, political elites, police officers, competitors and the public. In relation to management, Rebekah Brooks, the former CEO of NoW and the editor Andy Coulson are two of those main people responsible for the scandal. They both stepped down their position as a result of criminal charges of bribing the police and politicians. Rupert Murdoch and James Murdoch, the owner of News Corporation and the son of the...

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