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Margaret Heffernan

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The Wilful Blindness of Rupert Murdoch

Posted: 07/14/11 05:43 PM ET

After every institutional debacle, the arguments are the same: it was just a few bad apples. Nobody at the top is to blame. A few rogue, or over-zealous employees just went off piste. Then the full scale of the debacle emerges and another face-saving fiction emerges: no one could possibly have seen this coming. Both arguments were wrong in Abu Ghraib, at Enron, WorldCom, BP, Countrywide and Lehman Brothers and both are wrong today at News International.

The phone hacking scandal, and the enormous price paid for it by News Corporation, isn't the unfortunate byproduct of a few naughty freelancers. Nor was it an unpredictable, unforeseeable event. Rather, it was the product of a series of systemic failures any one of which was visible, but each one of which Rupert Murdoch and his UK-based chose to ignore.

Willful blindness is a legal term, cited in the trial of Enron's Skilling and Lay. It states that if there is knowledge that you could have had and should have had but chose not to have, you are still responsible. The causes of organizational willful blindness are many but News International demonstrated most of them:

Ideology
Big ideas create tunnel vision which encourages the believer to ignore disconfirming data. Murdoch has always believed in the business value of political power and the importance of scale. Those beliefs appear to have blinded him to two fundamental mood changes in British political life. Ever since the MPs expenses scandal (and perhaps even earlier, since Tony Blair pushed through his Iraq war) British public opinion has demonstrated a distaste for politics and politicians. Concurrently, takeovers of national icons by foreign companies -- such as Kraft's takeover of Cadbury -- inspired a revulsion against very big, very foreign corporate intervention in national life. But Murdoch's belief in politics and big corporate takeovers -- which had previously guided him to success -- blinded him to a fundamental sea change in British life.

Obedience
Ever since the Milgram experiments demonstrated that human beings are fundamentally obedient, serious leaders have understood that this represents a significant risk for those in power. What the experiments showed, he wrote, was "the capacity for man to abandon his humanity -- indeed the inevitability that he does so -- as he merges his unique personality into larger institutional structures." In plain terms that means that if you ask someone to hack a phone or impersonate a politician, most people will comply. If you are a powerful charismatic autocrat, they are even more likely to comply. What may have begun as a minor infraction becomes bigger and bolder -- and no one ever intervenes. This is a risk because compliance looks like harmony.

Conformity
Milgram's teacher, Solomon Asch, demonstrated that most of us so want to belong that we'd rather give a wrong answer (when we know the right one) than be left out of the group. Jaak Panksepp, the neuropharmacologist, has demonstrated the opioid reward for belonging -- and the consequent pain of exclusion. Seeing what success requires in an organization is readily seen and imitated. In big, successful glamorous companies these motivations become even more extreme, even cult like. Deborah Layton, one of the few survivors of Jim Jones's People's Temple in Guyana has spoken to me about what she sees as the cult-like quality of many corporations, a description regularly (although unwittingly) echoed by many I know who work at News International's headquarters in Wapping. If everyone is drinking the same Kool-Aid, you can be pretty sure no one will come and tell you when something is wrong. They're too afraid of exclusion and too eager for inclusion.

Money
Kathleen Vohs has conducted a battery of experiments into money all of which demonstrate the same finding: money undermines our sense of social connection. Extreme amounts of money do this extremely -- and it's easy to see how that works. The more money you have, with limos and helicopters and private jets, the less connected to the 'real' world you become. You're blind to your customers, your market, to political mood swings. Reading your own newspapers is no compensation.

Power operates in much the same way. Frances Milliken did a marvelous study comparing how those in power think and communicate differently from the rest of us. They're more optimistic, prepared to take bigger risks and think in more abstract terms. And the more cut off they become, the more certain they are that they are right.

Affirmation
We all are attracted to people like ourselves, people who confirm our sense that we are good and right. Murdoch was remarkably surrounded by just those people: his children. They blinded him to what was going on and to its full ramifications.

Of course Murdoch wasn't the only one who was blind. But for someone who succeeded in the past by being uniquely in touch with popular sentiment, this latest debacle demonstrates yet another source of blindness: success.

 
 
 
After every institutional debacle, the arguments are the same: it was just a few bad apples. Nobody at the top is to blame. A few rogue, or over-zealous employees just went off piste. Then the full sc...
After every institutional debacle, the arguments are the same: it was just a few bad apples. Nobody at the top is to blame. A few rogue, or over-zealous employees just went off piste. Then the full sc...
 
 
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12:20 PM on 07/17/2011
Seems the consensus of commenters is unanimus: Rupert Murdoch knew and is a scoundrel. And here I was thinking I had such an original idea.
11:13 AM on 07/16/2011
To call Murdoch willfully blind is as if You say someone who shot another person did not know that person would die when he shot him ten times. Murdoch not only knew what happened, I am more than sure he ordered it. He funds the Tea Party to destroy our democracy and pays politicians so he gets away with it. He inserts his people into governments and pay the highest judges to do his bidding.

He is exactly as willfully blind as Cheney, Rumsfeld, or Powell when they tore the world into Iraq.
11:57 AM on 07/15/2011
Uh, huge unwarranted assumption alert. Willful blindness, if there is knowledge that you could have had and should have had but chose not to have, you are still responsible IGNORES that the Murdochs HAD the knowledge.

Assuming they were ignorant is pure PR spin.
If prosecutors work on this assumption too, justice will be denied.

Very interesting piece otherwise, but the writer giving these criminals the benefit of the doubt may be due to some of the same reasons detailed in this piece.

I know this is an opinion piece, but if it was journalism, the ethics of journalism would not allow the writer to assume those at the top played no direct role.
In this case, with James already admitting knowledge of the bribes, I am confident that my opinion is the one closer to the truth.

They need to be prosecuted for their direct roles in this criminality, not just for poor management.
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arkymorgan
Nobody knows the trouble I've been...
02:34 PM on 07/16/2011
I think everyone knows that Rupert was such a control freak that the odds of his not being the original architect and major motivator of dirty tactics are deep into negative numbers..

'Wilfull blindness' just shuts off a defense of 'I didn't know': the courts don't need to waste time trying to prove he did know - and just get on with finding him guilty.
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Margaret Heffernan
CEO and Author
10:21 AM on 07/18/2011
Nobody yet knows what Murdoch knew and didn't know. We may find out, or we may not. If there's sufficient evidence, they will be prosecuted and so they should. That the corporation operated as though it was beyond the law is what this scandal is all about. But my point is that Murdoch didn't need to know; he was still responsible. Jeffrey Skilling isn't in jail for being a poor manager. He's in jail for a crime.
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sylvialafair
11:00 AM on 07/15/2011
This post is a great way to begin the deeper dialogue. It is so obvious that Murdoch is merely another in the long list of powerful and wealthy individuals who keeps a host of "Yes" people in his drawer. Long ago Samuel Goldwyn stated "I like everyone to tell the truth even if it costs them their job". No wonder so many stay mute.
The circumstances around the tabloid crisis are being handled more quickly than in the past. Maybe that is a sign of the times; we are getting sick and tired of deception and misuse of power. While Heffernan's studies show where we have been, they do not have to dictate where we are going. The plasticity of the brain throughout our lives may yet help us move to more ethical, higher orders of living. All we have to do is show up!
Sylvia Lafair author "Don't Bring It to Work"
03:49 AM on 07/15/2011
Ms Heffernan may be guilty of the same 'tunnel vision' she attributes to others, while the Milgram tie-in is questionable - the evil that people (incl. phone hackers) do is attributable to their own greed and self-interest, not justifiable on the back of some kind of tacit, unsaid nudge and wink from their managers. The unspoken truth of these hacking allegations is that it shows many in the UK to be looking uncomfortably into a mirror and not liking what they see. Here is a country where tabloids, spewing forth filth on a daily basis, are apparently the biggest selling, and most read, newspapers. The public seemingly can't get enough of this trash (a footballer bonking a topless model, or what the father of a murdered child does in the privacy of his home, attract more public interest than floods in China, wars in North Africa or the severe economic threat of a European Sovereign debt crisis). So as parliamentarians react with self-righteous indignation, and public opinion rallies against the rich, foreign, corporate mogul (who profited from the narrow, sordid reading preferences of many in the UK), let's not skirt the fact that, however abhorrent the fact that such intrusions took place (hacking and bribing policemen), and how poorly (and justifiably so) this reflects on NewsCorp, this saga reflects as badly on the average English newspaper reader - whose content preferences created the spark which lit the fire.
08:27 PM on 07/14/2011
This article describes itself ...

..... "the Willful Blindness of Margaret Heffernan" ......