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Subscribe to RSSMedia giant News Corp. is again under fire for allegations of ethical breaches, this time over an unusual circulation deal at the Wall Street Journal Europe.
The allegations come months after the company, controlled by Rupert Murdoch, was forced to close its British tabloid News of the World following allegations the company paid police for information and hacked into the voicemails of murder victims and others.
“This is just another data point that raises questions about the ethical integrity of News Corp. as a corporation,” said Laura Martin, a senior analyst with Needham, who covers media companies.
Parbul TV via Reuters
News Corp. Chairman and Chief Executive Rupert Murdoch testified before the British Parliament in July over his company's phone hacking scandal.
The British newspaper The Guardian reported Wednesday that The Wall Street Journal Europe, an overseas version of the flagship New York newspaper, struck an unusual circulation deal with a Dutch company, Executive Learning Partnership.
The deal called on ELP to buy thousands of copies of the Wall Street Journal Europe at a highly discounted rate, which would then be circulated to students and others. As part of the deal, the Guardian reported, Journal staffers wrote two articles featuring the company.
The Guardian alleges that the cheap newspaper sales were a way for the Journal's European edition to boost its circulation figures.
Dow Jones, publisher of the Wall Street Journal papers, said the programs to sell the discounted papers were publicly disclosed and legitimate.
“The practice of sponsored distribution to business schools and universities is common in the industry and clearly identified in all WSJE publisher statements,” the company spokeswoman Bethany Sherman said in a statement provided to msnbc.com.
However, the company conceded that writing articles featuring ELP raised questions about whether its editorial practices might be influenced by its commercial interests. That led to the resignation of the Wall Street Journal Europe's publisher, Andrew Langhoff.
“Andrew Langhoff resigned because of a perceived breach of editorial integrity, not because of circulation programs,” the company said in the statement.
The company has since added a note to the online versions of the articles involving ELP disclosing that the impetus for the articles was the agreement between the circulation department and the company.
On Thursday, the Journal itself reported that deals such as the one Dow Jones struck with ELP, calling on companies to buy newspapers in bulk at discounted rates, accounted for more than half of the European edition’s circulation of nearly 75,000 copies.
Dow Jones has maintained that the circulation deal itself was above board.
“ELP was paid for legitimate services rendered; however, the manner in which they were paid was admittedly complex but nevertheless legitimate,” the company said in its statement to msnbc.com.
Most news organizations go to great lengths to make sure that their editorial operations are not influenced by their company’s business dealings.
Kelly McBride, a senior faculty member at the Poynter Institute with a focus on journalistic ethics, called the allegations huge and surprising. She said the issues were especially disconcerting because they involve the Wall Street Journal, generally considered the pinnacle of News Corp.’s journalism reputation.
“People are looking at this and saying, ‘Hmm, maybe we were wrong. Maybe the parent company can undermine the integrity of a solid journalism organization in real and substantial ways,’” she said.
She said it raises the question of whether there are other ethical issues elsewhere in the company.
“It’s reasonable to ask questions about all News Corp. properties,” she said.
News Corp. bought Dow Jones, owner of the Journal, in 2007 for more than $5 billion. The Guardian and Pro Publica have reported that some members of the Bancroft family, which formerly controlled the Journal, came to regret the sale in the wake of the hacking scandal.
Murdoch's lieutenant Les Hinton, chief executive officer of Dow Jones, resigned in July over fallout from the News of the World scandal.
News Corp. also owns Fox Broadcasting, the New York Post and many other media outlets.
News Corp. shares have been rallying lately from lows hit during the summer scandal.
Editor's note: Allison Linn previously worked for The Wall Street Journal Europe.
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The Murdoch slime permeates everything he touches!
I think disgusted would be a more adequate term Madmax.
I wonder if this story is on Fox News? NOT!!! This is the way Fox News calls itself the number 1 news station.
They're just bent out of shape because they despise Fox so much, they're willing to do anything to hurt its owner. Stand firm, Fox.
It's hard to stand firm when you are that crooked.
Amazing. All around him, Murdock's "people" are having to fall on their swords. Wonder if it will ever get to him?
Oh, well, it will, eventually, when he answers to someone even more powerful then he is.
@Joe: that was a good one. Remember fair and balanced. In other words, white and firmly leaning against the farthest right wall.
Trust me folks, ELP is just as slimy as faux noise agitprop, just a Dutch variant of rightwing extremist propaganda.
It's only a question of which company has MORE fleas, not of one giving them to the other.
As I recall, the specter of such behavior was what gave pause to the Bancroft family about selling WSJ to Murdoch. Murdoch doggedly pursued the WSJ in order to give the rest of the News Corp. "empire" a sense of respectability in the US, at least in opposition to the bottom-feeders Fox News, and New York Post (all housed cozily together at 1211 Avenue of the Americas (Sixth Avenue)).
.
Scumbags, but rich scumbags. And wanting to stay that way.
Come on people....are you really suprised!
Surprised? Never.
I was just thinking while reading this, though, who's handshake would make me vomit faster, Goebbels', or Murdock's.
I guess Goebbels', but only because he's a mouldering corpse.
There continues to be the cry about too much government and yet, the government that is growing in leaps and bounds is the shadow government run by the international corporations. Washington is just a front for them.
If it weren't so serious it would be laughable. We are told early on in our schools that government is for and by the people and that majority rules. In spite of all that garbage, a small minority of people run this country and are working on expanding their world wide empire using our kids as cannon foder.
Somebody has to die but as of now it is all the wrong people.
The Murdochs need to have their broadcasting and print liscenses revoked.
There is no such thing as a print license. Reread the US Constitution.
Ah but there ARE printing licenses....they are local business licenses, and those are ALL constitutional, just as a broadcast license is. All publishers have to have various kinds of licenses to stay in business. You are confusing Free Speech with licensing of a business.
The easiest way to 'revoke' thier license is for the boards of these companies to kick them out.
There are news stories where some of the board members are at least thinking of this idea - for one, I won't be the least bit suprised that if the revelations of bad deeds keep coming, that this will eventually happen.
Of course, the right wing will blame the liberals for it - but when it happens it will be pure capitalism in actions - which is what the right wing demands be allowed at all cost.
eis right ina way.They nevertakeaway therightto make mney.Did anyoneever yank enron's business permits? No.it was the accountant that took the fall and after that capital dried up so they had to sell of to paydown debts.
How many bank charter were revoked ater the melt down? Moat bankswere simply merged with someone else the music went on not missing a beat -who went to jail for fraud. we haveyet to see a single person. What Wall Street firm license has been revked?
Street peddlers have tougher regulation...taxi drivers too
Murdoch and ethics should not appear in the same sentence.
As opposed to all the lies and propaganda spouted off by the progressive news, "All Obama, all the time", networks. How many pro Obama articles have been written? How many puff pieces? Where is the story on the Gibson guitar scandal? Where is the story on the Solarworld scandal?
Oop's, I guess thet'll catch up a few months from now.
Murdoch has no ethics. There's a sentence with both that works.
OH a guitar scandal, now that is something we all need to worry about! Get a life!
Tell you what, p111, I can't answer your first question. Why don't you go and count them all. We'll wait. Really. But first, post a link to the "Gibson guitar scandal." I'll even look at the "Solarworld scandal." No Fox links, please. Going to Fox News has been known to cause my computer to lock up in giggling fits, and it takes days to get it to behave normally again.
Anyway, post your links, then off you go, like a good chap. We're waiting for your count of the pro Obama articles. We don't have all night, now.
Calling the Murdoch's and those of their ilk scum insults scum.
That's true. Maybe "Murdoch" could become a new swearword? As in "Murdoch you!" Uhhhgg. That's pretty vile. I'll save that for my worst enemy.
Ethics is a dirty word for Murdoch. He has no ethics. They do not report news, they make it up. I totally agree with John, lets not insult scum. They choke every time they say "Fair and Balanced" what a joke!!!!!
Who cares. I guess the left cares to smear Murdoch.
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Hardly necessary, Ed. From all indications, Murdoch and his band of charlatans are doing an excellent job of it without any outside help from anyone.
Boo-hoo.
The ability to claim increased circulation also leads to increased Advertising fees. Are the Academic versions Ad free, or do the circulation numbers from one version apply to all.
Ethics and integrity? What's that?
This line is almost laughable today ...
This was true fifty years ago ... but not today ... and is effectively destroying journalistic integrity, and the whole constitutional concept of "Free Press" ....
It has rarely been true in American journalism. Some are simply better at masking their bias.
Journalism, be it print or electronic medium, will always be subservient to corporate interests so long as the medium must rely on advertising dollars to exist. If a large advertiser expreses concern ~ not necessarily objection, just concern ~ over journalistic content, there will be a reaction at the top that filters down through the entire operation. Do not be misled into believing that the "editorial board" or its equivalent has total control over journalistic content. Ownership rarely surrenders its right to run the operation it owns.
Until the NYT is compelled to disclose how it came into posession of illegally obtained wikileaks docs and why they printed them, everything else seems unimportant by comparison.
Well. we give them license; can we take it back?
There is no license granted nor required to run a print medium such as a newspaper. Federal licenses are granted upon approved application to utilize channels within the radio/television spectrum. Revocation of a broadcast license seldom occurs except for failure to monitor and adhere to technical requirements imposed on the broadcaster/telecaster. Pulling a license for editorial content required legal process and is seldom if ever granted because of First Amendment rights that extend to not only newspapers but to all media.
I've hated the beneath scum Koche Brothers since they attacked a decorated veteran. No morality and no ethics.
This is same "Guardian" newspaper that it verging on bankruptcy, with a dwindling circulation of sad lefties only kept in business by its ownership of a magazine that sells used cars? The editor of which is paid 440,000 pounds a year? The same "Guardian" that has been utterly condemned as irresponsible and traitorous by whistle blower Julian Assange? Let he who is who is without sin amongst you cast the first stone...
Are you trying to say that printing the truth is only of value if you make money doing it?
I'm not really concerned about what Assange said about any British newspaper, since he is biased by the fact that the Brits held him under house arrest.
And now you're bagging on used cars? Is nothing sacred to you? Recycling is good. I drive a great recycled Lincoln Mk VIII LSC. Mileage sucks, but I don't drive much anyway.
News Corp and ethics is an oxymoron.
This is news? Give me a break ABC, CBS and NBC have been giving Obama favorable coverage for executive access the entire 4 years Obama has been well known. I kissed your girl-friend because she kissed me. Does that mean you are going to slander me in every news outlet in the nation? The entire News Corp. organization is kicking every other news org's butt. The ratings don't lie but losers whine.
The ratings only show that we need to improve our educational system. Ratings != (does not equal) Truth.
It's the insane idea that one news station out of, well at least 6 major English speaking news organization, is the only one telling the truth is the really laughable proposition.
Let me put it this way, so you won't understand it: If you hear hooves, it's probably not a zebra.
Shocked, I tell you. Shocked.
Amazing how quick the serf's of the GOp and TNutbagger parties will stand up for 1%......Keep telling yourserfs someday I to will be rich, someday I will be rich....
Many of the asinine GOP/TP comments come from paid blogger trolls. Much of that unlimited/untraceable American Crossroads and Freedomworks Superpac money (Thanks a lot Supreme Court!) is already being spent. (You don't think they would save it all for 6 months before the election do you? - there's so much $$!)
The 50% of bloggers on Dick Armey and Karl Rove's pay role are trying to egg on the other 50% who are too stupid to realize they're being played. If they succeed, America may never see true democracy again.
Concerned-3397312 is correct. This type of ethical erosion is precisely what the Bancroft family was worried about and caused them to delay the sale to Murdoch. But the laws of physics apply. Water seeks its own level. Instead of raising the reputation of Murdoch's operations, the association has brought down the level of professionalism at the WSJ closer to the hucksterism and tabloid psyche of the rest of his enterprises.
And yet, in the end they took the money over the good name of their product. That was a sad day for the WSJ.
These guys have been sleezeballs from the beginning of their existance. Yes, there is some corporate influence in most other media but News Corp has an adgenda and has no qualms about putting it to work in their news outlets. If you watch Fox News you only hear what Murdoch wants you to hear.
Well, he did spring from a former penal colony....
(preemptive reply) Australia is not a "race."
I'll bet you won't see this reported on Fox News.
Not yet! Eventually they will bury it on page 99.
Apparently a kitten saved in Ireland is more important.
And for MSNBC, a childbirth is more important than the Eric "I lied to Congress" Holder scandal.
Good luck finding anything about it on MSNBC.
You'd never get me to take that bet.
What, Steve? Did Fox Propaganda make up something about Eric Holder? Please. Do tell.
Update: Well, Steve, I can't find this scorching scandal on CNN either. Hmm. Must not be that hot.
I did find this though:
cnn.com/2011/10/13/opinion/carville-gop-2012-field/index.html?npt=NP1
and this is funny too:
nymag.com/daily/intel/2011/10/herman_cain_sim_city_999.html