Murdoch Case Study

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UK Phone Hacking Scandal PART A: CASE STUDY The 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

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