The irony is not lost on many that the current ethical scandal that is fuelling global media, the story making front pages around the world and clogging all that is cyber, is indeed about the media itself.  The story is the story. And the story is of ethics.

The News of the World (NoW) the most profitable UK Sunday newspaper with the highest circulation and  known as the most read paper in the English language was dramatically closed yesterday by News International.

In what has largely been seen as a cynical move, well calculated by the Board (as Lucy P Marcus notes) it is widely understood that the paper’s closure has been in response not only to the raft of blue-chip advertisers who distanced themselves from the paper, but, significantly to the social media campaigns – particularly on Twitter – against it, reinforcing the message to all companies of the new power of the people.

The next stage of the strategy is yet to be played out, as many commentators are unsure if just cutting the tail off the lizard sorts the heart of the issue. And pity the tail - in this case the 200 or so NoW employees many of whom weren't around at the time of the alleged issues.

As the Indian press report today the wider Murdoch empire is never far from scandal.  In the main NoW's profits were derived from leveraging on others’ scandals, and the drama involving this current story surpasses any hack’s dream.  With a cast involving media barons, flame-haired editors, undercover actors and politicians and, at the heart of this awful story, victims of murder, terrorism and the current UK military conflicts – themes of intrigue, duplicity and immorality will be filling the presses, airwaves and cyberspace for some weeks to come.

In turn, it is yet to be seen who will be called to account or be the scapegoat.... And behind this glitzy cast, where are those involved in the day to day? Those responsible for the stewardship of an organisation?

The accumulating reports of the “cesspit” of tabloid sensationalist journalism “devoid of ethics and morality” and the sudden public backlash (albeit the public who set the demand for NoW's exclusive and revelationary stories) highlights that a company’s reputation can be destroyed in days.  A side story around NoW in the press is summed up by British peer Lord Donoughue, a past journalist himself, who in response to editorials referring to the journalist “profession” states in a letter to the UK's Times (another paper from the Murdoch stable)  “there is no such thing.  A profession has rigorous standards and conditions of entry, training, conduct self or statutory regulation and accountability”.  He goes on to comment, that should such standards apply to journalists (albeit the tabloid type) it might make the “present sad industry commercially unviable”.   

So my curiousity therefore, is around all those - particularly those with professional positions, such as chartered accountants - who knew of these practices at the time and might not have spoken up.  Or those who did and weren’t listened to.  Can we really believe that senior executives were in the dark about the methods used to “get the stories”?  In firms around the world right now how many senior executives turn a blind eye to methods used to “hit the targets”, “make the sale”, or “pass the business case”.  As financial professionals with a code to uphold when are you compromised? And what action do you take? Or even can you take? 

In the recent UK MP's expenses scandal it was ultimately those administering the claims that started to reject them.  Where was accountability up the line? Sooner or later these issues can and often do escalate.  I, naively, wonder how the payments to the metropolitan police were made – some allegedly of up to £30,000 to individuals.  How is that accounted for - an expensive dinner?  Petty cash for a jobbing journalist? Quite a hefty brown envelope I imagine and one that today would capture the interest of enforcers of the UK Bribery Act.  I also wonder if Her Majesty's Revenue and Customs are investigating such payments.

In CIMA’s ethical checklist one of the key reflection questions asked is “how would you feel if you saw it in a newspaper?”  With the consultation literally closing on the proposed and highly controversial takeover of BSkyB,  I wonder how Mr Murdoch feels now he has the widest publicity that News International has ever known?  There is indeed such a thing as bad press.

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For more information on CIMA’s professional standards, code of ethics and related resources see our webpages.

[Image courtesy of sashafatcat on Flickr]