Why It's Hard for the Media to Cover the Phone-Hacking Scandal

Media observers have been watching closely at how Rupert Murdoch's News Corp. outlets have been covering the phone-hacking scandal that led to the closing of the company's News of the World British tabloid earlier this month. Critics of News Corp.'s Fox News Channel have ammunition to prove that it's trying to avoid mentioning the scandal at all.

A new Pew Research study shows that Fox has spent far less time than either CNN or MSNBC in covering the story. Before you join the conspiracy therorists, consider what it's like for a Fox News journalist to talk about the scandal.

Say you're a Fox News producer who wants to put the story in your show. How high up the ladder do you need to go for approval? Probably much higher than for a normal news topic. It's understandable that no executive wants to be the one to give the okay. The company's legal and even human resources departments might also be involved, to make sure company policies aren't violated.

In this case, there's another issue -- the company's stock price. The price is starting to rebound, after losing about $8 billion in value since the month started. Why should a Fox News employee be concerned about that? A huge, sustained loss could lead to cutbacks in this profit-seeking industry.

Fox has been criticized for slanting coverage of this story that's confusing enough for many U.S. viewers. Some have blasted Fox for making it appear as though it's the victim of hacking.

This story presents issues for other media outlets, especially CNN. Its talk show host Piers Morgan, who just this year replaced Larry King in a key prime time slot, was an editor at News of the World in the mid-1990s.

He is denying any involvement in the scandal, and is firing back at a Parliament member who accuses him of hacking phones during his time at the tabloid.

So if anyone at CNN had been high-fiving colleagues at News Corp.'s misfortune, it's time to realize the latest accusations call for a calmer approach. That leaves both networks having to handle their coverage with care.

For anyone working in media, from a small newspaper to a national network, the chances are you'll likely be confronted with this type of internal crisis some time in your career. If it's at your company, the first instinct might be to ignore it. If it's happening to a competitor, you may be tempted to exploit it.

It's interesting that many companies have crisis management teams or policies, yet most media outlets don't. The best advice is to find balance. If your company is under scrutiny, report the facts plainly and without spin or denial. If it's happening to an archrival, do the same -- without gloating or snide attacks.

After all, that's what your audience has come to expect from you. Your standards should not change just because the story hits close to home.

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