How could this “hacking” have happened over such a length of time without the apparent knowledge or influence of senior executives in the group? / Paul Bates, Director Europe, The Network, Inc.

As the News Corporation (News International) “phone hacking scandal” rolls on and escalates here in the UK, one question has now become a hotbed for discussion in business meetings and social gatherings around the country: How could this “hacking” have happened over such a length of time without the apparent knowledge or influence of senior executives in the group?

Certainly seems impossible – doesn’t it?

I have done some research into the compliance programme of News Corps. Whilst they appear to have a detailed “Standards of Business Conduct” giving guidance on ethical behaviour, it would certainly appear that some individuals within the company were acting otherwise despite the policy. The company also has a 24/7/365 “Alertline,” which seems to be well publicised, for staff and third parties to call to report unethical behaviour – amongst other things. According to one press article I read today, the business has been hit by a class-action lawsuit by News Corps shareholders over claims that bosses failed to properly investigate phone hacking taking place at the News of the World newspaper, which was shut down on Sunday.

Could it be that the “Alertline” was indeed used but the incidents were not being effectively managed, escalated and reported to the group’s executives? Or perhaps they were being reported, but in a competitive market where business drivers overtook the need to behave in an ethical and compliant manner, executives turned a blind eye to what was happening around them? Whatever happened there certainly seems to have been a lack of control and certainly emphasises the need for organisations to take and manage Governance, Risk & Compliance issues very seriously.

One can only imagine where this whole saga is going. Some say it spells the demise of Rupert Murdoch and his multibillion dollar empire. One theory says it could even eventually bring down the British government, with its alleged close ties to the group and its executives. We must wait with baited breath to see what twists and turns unfold in the coming days and weeks.

Article category: ReportLine

Compliance tags: compliance policies and programs compliance reporting whistleblowers compliance technology risk management employee code of conduct fraud prevention effective risk management 24 hour anonymous hotline UK Bribery Act GRC technology governance, risk and compliance solutions ethics and compliance training governance training international business ethics compliance training

Effectively Communicating your Company's Ethics / The NetWork Event .. 26th May 2011

UK Bribery Act governance, risk and compliance solutions event risk management

 Most companies view the soon-to-be-enacted UK Bribery Act as a positive step toward curbing corruption and promoting a more ethical global marketplace. Many organisations are actively putting their anti-corruption procedures into place, but for others, the new legislation will be a wake-up call to bribery and corruption issues facing their business, forcing the design, implementation and communication of new policy and procedures, across the enterprise.

In this complimentary, in-person event, Paul Bates, Director of Europe at The Network, will lead a discussion on Board-level requirements for addressing the pending UK Bribery Act, including key points on the need for executive involvement and communication, the implications for global business practices and how effective employee training can bridge the gap.

Bates will be joined in London by Sterl Greenhalgh of Grant Thornton UK LLP, a leading financial and business adviser and Garry Honey, Visiting Professor of Risk at Plymouth University, to discuss:

-Why solid, executive-level involvement and a Board-sponsored strategy are essential to drive the message and overcome barriers of a successful anti-corruption program

-The need for clarity in communication and implementation, from the senior level to the ground-floor employee

-How employee training programm work to embed an ethical culture into an organization to deter corruption

Kirsten Schlau

Email: kirstenschlau@tnwinc.com
Phone: 
Cell: 
Website: http://www.tnwinc.com/