More

Featuring fresh takes and real-time analysis from HuffPost's signature lineup of contributors
Robert Greenwald

GET UPDATES FROM Robert Greenwald

News Corp: A Study in the Failure of Corporate Self-Regulation

Posted: 07/26/11 03:21 PM ET

This post was originally published by the Guardian.

What is the main lesson learned in the Murdoch scandal?

That corporate conglomerate power run unregulated causes great public harm and lacks the checks and balances required for there to be any accountability. Given this, what would be the best way to investigate the criminal wrongdoings of such a conglomerate?

News Corp would have you believe that the answer to that question is: have the guilty and obscuring conglomerate examine itself and then report to the rest of the world the level of information it chooses to publish.

Let me be blunt: this is the definition of insanity.

Former New York City school Chancellor Joel Klein, now News Corp's executive vice president, has been tapped to lead the investigation of the company that pays him $4.5 million a year and gives him stock awards. What could potentially be a conflict of interest around that?

And who does Klein report to? Viet Dinh. Viet Dinh's prior work experience? Authoring the USA Patriot Act, a law that greatly increased the government's use of wiretapping and other forms of eavesdropping on citizens.

We also have already seen how such internal News Corps investigations turn out. There is the precedent of Les Hinton's prior internal investigation, which revealed no phone hacking beyond the "bad apple" who had already gone to prison. Eventually, that failed investigation caught up with Hinton, who resigned from his post as chief executive of Dow Jones, publisher of the Murdoch-owned Wall Street Journal. But this example further highlights the point: there is no incentive for a senior executive to do anything other than minimize the issue they are investigating.

This act of News Corp supposedly investigating itself is a clear and raging sign of why consolidated power cannot be left in complete and unchecked control -- particularly of their own investigation. As my 2004 documentary Outfoxed highlighted, in examining the unethical behavior of Fox News, the News Corp problem of distorting the truth has long existed. As a company, News Corp, with Fox often leading the way, has led an imaginary war in which it sees itself as "against the world." Nothing from its corporate practices suggests that a self-investigation would reveal actual information.

This is not how things have to be. News Corp could follow the lead from dozens of prior companies and hire outside legal counsel to oversee the investigation. What News Corp is doing, once more, goes beyond standard practice and refuses to cede any control, presumably fearing that it might stop it from doing whatever it is it wants to do. Charles M. Elson, an expert on corporate governance at the University of Delaware, was recently quoted in The New York Times on this matter, saying clearly, "You cannot be seen as objective if you are inside."

Let me summarize what has been learned by this whole parade of corruption. Corporate conglomerates run without regulation, do not work in the service of society, and run reckless and unchecked whenever possible. Self-investigation of such malfeasance is not the standard, and should not be the situation in this case. This whole phone-hacking story has been nothing but an absurd example of how power run unchecked responds by claiming more power when attempted to be reined in.

News Corp should not be allowed to continue this charade of a self-investigation. Meanwhile, the United States Senate and the department of justice should use all the power they have to push for a complete and thorough investigation into News Corp's US dealings. We all deserve real answers to how much criminal activity occurred, and where the related responsibility and accountability failed.

Those answers will never come from News Corp itself.

 
 
 

Follow Robert Greenwald on Twitter: www.twitter.com/robertgreenwald

This post was originally published by the Guardian. What is the main lesson learned in the Murdoch scandal? That corporate conglomerate power run unregulated causes great public harm and lacks the ...
This post was originally published by the Guardian. What is the main lesson learned in the Murdoch scandal? That corporate conglomerate power run unregulated causes great public harm and lacks the ...
 
 
  • Comments
  • 14
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Recency  | 
Popularity
photo
HUFFPOST SUPER USER
Jason Ryberg
I can see you.
05:48 PM on 07/27/2011
"Let me summarize what has been learned by this whole parade of corruption. Corporate conglomerates run without regulation, do not work in the service of society, and run reckless and unchecked whenever possible. Self-investigation of such malfeasance is not the standard, and should not be the situation in this case. This whole phone-hacking story has been nothing but an absurd example of how power run unchecked responds by claiming more power when attempted to be reined in." Brilliant.
hgus
It's not about the economy, stupid
01:37 PM on 07/27/2011
Great article. Must read.
photo
GrantS
I'm liberal through and through.
09:37 AM on 07/27/2011
HONEST investigation can never happen. That requires searching for truth: something Fox never does.
08:56 AM on 07/27/2011
All true, and could easily be said about Goldman $achs, big banks, insurance companies and other large entities that are over-capitalized and under-supervised. The inmates are running the asylum. They've bought the majority of our representatives, so any answer to the problem involves more of the same.
This user has chosen to opt out of the Badges program
photo
zlohcuc
"Serving millions from atop the Allegheny"
06:36 AM on 07/27/2011
One of countless examples and yet there are seldom any reprisals ...gee, ya wonder what it would take to create/enforce regulations that would inure to the benefit of consumers and citizens.
04:40 AM on 07/27/2011
Nor will they come from the DOJ. Yes, Murdoch is that powerful. If those who committed the crimes on wall street can walk away (so far anyway) then I am sure Murdoch with his billions and highly functioning propaganda machine will also skate away.
photo
LMPE
I connect the most dissimilar things
12:49 AM on 07/27/2011
Any country that doesn't have any Rupert Murdoch-owned news outlets is very lucky.
HUFFPOST SUPER USER
jpsoraire
10:32 PM on 07/26/2011
Great article, thanks :)
photo
golions
Real Americans drink coffee, not tea.
06:36 PM on 07/26/2011
Spot-on analysis. News Corp's last internal investigation was worthless. It was Nick Davies at The Guardian and actor Hugh Grant who shed light on what NOTW was doing. Even now while News Corp. shareholders are suing the company for mismanagement, News Corp. refuses to take the standard measure of hiring outside attorneys to oversee an investigation. News Corp.'s US holdings are editorializing in defense of their corporation, and one of News Corp's British papers has published an atrocious political cartoon that used starving Somali children to deliver a message that was essentially 'nothing to see here, move along.'

Not even a starry-eyed idealist can expect more than a dog and pony show out of that company's efforts at self-regulation.
photo
HUFFPOST SUPER USER
Reno Fickler
Head Lifeguard/Dead Sea Marina
06:06 PM on 07/26/2011
I paid myself $3 million to investigate yours truly.
Turns out I AM a nice guy.
Just ask the investigator.
photo
HUFFPOST SUPER USER
BankOfHell
I know little of women. But I've heard dread tales
08:57 AM on 07/27/2011
I coulda saved you money. For a $100 I woulda claimed you were a prince.
photo
oftenon
cartoons are the best explanation
04:41 PM on 07/26/2011
Market self-regulation is myth, as Greenspan himself admitted in the wake of market disaster. Conglomerate self-regulation is contrary to corporate self-interest, contrary to culture and contrary to profit. The only legitimate disciplinary and regulatory body is under full-scale attack in US. Corporate hegemony was cemented by SCOTUS' Citizen's United ruling. An independent democracy is myth without its repeal.
HUFFPOST SUPER USER
Jim Pasterczyk
Banned!
12:17 AM on 07/27/2011
Yet people who claim to want a small government still believe in the GOP and its professed belief in the same, all the while ignoring the fact that without this regulation somebody else will just step into the void without any accountability because they can't be voted out of office. Bright thinking there, Tea Baggers.
photo
oftenon
cartoons are the best explanation
07:16 PM on 07/27/2011
Tbaggers believe what they're told by very bright people who cherry-pick issues and facts that stimulate - in unironic marketing parlance- their 'animal spirits'. It is a synthetic political movement, totally abstract from precedents of governance, morality and most versions of reality - but like its corporate model, that is no impediment to existence.