Rupert Murdoch Testifies and Casts Doubt on the Multitude of Uninformed CEOs

Rupert Murdoch and his son, James, testified before a British Parliamentary committee today about what they knew concerning the phone hacking that seems to have been widespread among News of the World reporters.

As was expected, I suppose, they said they didn’t know much about the affair until it hit the front pages of other London newspapers. They did say that several years ago, when a civil case was brought against an NOTW reporter, they made a settlement and the case was dropped. They also testified that after that, they and the police made an investigation and found nothing that would have suggested that the practice of phone hacking to get information for news articles was being used.

All of that is just the background for what has become a political scandal of sorts in Britain. Rupert Murdoch has for several decades controlled the political reporting process in Britain and his favor or disfavor could make or ruin a politician’s career. Everyone understood his power and no one did anything to stop his overwhelming capacity to influence elections because everyone was afraid to be put under the microscope of his wrath.

So, politicians and their coteries simply played the game with Murdoch and his power went from grand to great.

But, with the phone hacking allegations, concerning not only politicians but also murder victims and their families, a new light is being shined on the Murdoch media empire.

Today’s first foray into the inner workings of Murdoch’s conglomerate was interesting for its presentation of a man who is aging, a little forgetful and rambling, but even so ready to defend his people and his media outlets. What was most obvious is that he knew little about the daily workings of the newspapers and TV channels he owned. He trusted his managers to do the right thing and “they let me down.”

One is quick to condemn Rupert Murdoch for not knowing what was going on in his own businesses, but considering their size and global scope, perhaps he was telling the truth. He trusted his managers to do the right thing.

For that matter, think about all the CEOs, including those at BP during the Gulf oil spill, who are in charge of businesses so large and far flung that nobody could possibly know, let alone control, all that is happening in their inner systems, whether it’s putting defective parts in an oil rig pumping system or illegal phone hacking.