5 Things We Learned From the British Parliament’s Explosive Report on Murdoch
May 1, 2012
Commentary by: Ben Heineman, Belfer Center senior fellow
Topic: News Corp’s hacking scandal
“It is inconceivable that Rupert Murdoch was not well aware of the instance of illegal hacking of the heir to the throne, which led to criminal sanctions imposed on a reporter in his own newspaper. (It isn’t every day that one of your reporters is guilty of a crime.)
There is an iron rule of corporate crisis management for top leaders: ‘It is our problem the moment we hear about it.’ Having heard about ‘it’–the royal hacking and the criminal disposition–the leader of the corporation should have made sure that he actually learned the causes of the individual case, whether those causes were systematic, how many others in the organization were involved, how people would be disciplined, and how systems and culture would be changed.”
Heineman also wrote “Wal-Mart Bribery Case Raises Fundamental Governance Issues” for the Harvard Law School Forum on Corporate Governance and Financial Regulation on April 28, 2012.