Corporate Ethical Issues and Ensuing Influence-Case Study of Murdoch's Phone Hacking Scandal

Topics: Business ethics, Ethics, Corporate social responsibility Pages: 10 (2833 words) Published: January 11, 2012
Corporate Ethical Issues and Ensuing influence-Case study of Murdoch's phone hacking scandal 1. Research Background
The business ethics refers to the ethics of enterprise operation. Not only for the enterprises, all organizations related to business are supposed to have ethical issues. As long as the groups of people are having business activities,there are always exist ethical issues in essence(Drucker,1981,pp66). A moral enterprise should pay attention to the human nature,avoid conflict and friction with the society,actively take the behavior beneficial to society. The concept of business ethics is emerged in the United States in the 70s, Japanese have also started the research on enterprise ethics issues in recent years. Some people think that enterprises take the profit making as main object,and the ethics is the pursuit of moral standard, the business objectives have no necessary link with the enterprise society responsibility, so that the business objectives is contradictory to the business ethics. In fact this is the superficial phenomenon,the thinking mode of profit pursuit is behind the new age. In the modern era, if the enterprise only focus on profit-push, and without considering the enterprise ethics,the operation activity of this enterprise will not be accepted by the society and obsoleted by the times. That is, if there is not ethics guide in the enterprises operation activities, the business itself cannot be successful. To marketers, consumer behavior is a very important proposition,this is not only because that consumer behavior analysis is the foundation of the marketing strategy,but also because that the attention to consumer is the important contribution of marketing to commercial practice(Montiel,2003,pp229).More and more enterprises realize that only the enterprises which really understand consumers can develop better products and services. In 2011, a phone hacking scandal that started at Rupert Murdoch's Sunday tabloid News of the World was rapidly escalating into a full-fledged conflagration that threatens Murdoch, his global media empire, and the British government. “News of the World” is one of the biggest selling British newspaper,it has 168 years of history,feature for publishing celebrity news(Robinson, James,2011).London police station has revealed that the victims of “News of the World” phone hacking behavior could be as many as 4000 people(Davies,2011).Britain's “Sunday Telegraph” reported that victims of the famous media mogul rupert murdoch subsidiary companies private phone hacking may be up to more than 100 people, among them,there include two British royal family members-Princess Eugenie and Beatrice(Mendick,2011).Report quoted a London lawyer’s words,the murdoch subordinates “News of the World” was accused of eavesdropping on private telephone, there may be many people will be arrested.On the 8th,April,2011, “News of the World” admitted that they have been phone hacking for eight celebrities for a long time, A British law firm said they have instituted legal proceedings to the “News of the World” on behalf of the five people among the 24 victims. Whereas, the other similar cases compared to this scandal can only be called as "the tip of the iceberg".This incident triggered a big public opinion storm in the global range, people begin to pay close attention to the news industry business ethics issues, as well as the relevant influence to cosumer’s rights.Based on this event, this paper start a topic about consumer awareness of ethical issues in business and how these issues affect consumer behavior. 1. Aims& Objectives

The focus of this paper will be on extension strategy of Ethical Issues in Business and its Influence. The dissertation project will cover the following aims: · Definite different type of Ethical Issues in Business and analyze its influence on consumer awareness. · Come with case study to analyze how the business ethics issues impact on consumer behavior, and the...

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Robinson, James (10 July 2011). "News of the World to close as Rupert Murdoch acts to limit fallout".The Guardian (UK: Guardian Media Group). ISSN 0261-3077. OCLC 60623878.
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