Can ethics in the media and the survival instincts of a company co-exist? It turns out that 20 members of the media are acting as outside directors at state and private companies. That does not in any way create a legal problem, but it does when you measure it by the strict ethical standards that exist for people in the news media. The press is entrusted with the duty of maintaining the interests of the public, and not the interests of specific individuals.
It would be worth considering what "special duties" outside directors are entrusted with. Was not practice of having outside directors on the boards of directors at Korean companies started towards the end of 1990, as the result of painful introspection in the wake of the shock that was the financial crisis? The point was to make corporate management more transparent and in doing so increase corporate soundness and competitiveness. The reality, however, is that outside directors are not guaranteeing that that is what happens. It turns out a considerable number of the outside directors at Korea's conglomerates are former officials with government ministries or financial supervisory agencies. That is a clear sign that they are being used in "lobbying maneuvers." In our view, outside directors from the news media also cannot be free from such criticism. Most that are from the press are board directors, chief editors, editorial department heads, and other people who wield a great deal of direct influence in the production of the news. That is enough to suspect their selection as outside directors is part of an effort to win favorable coverage.
The fact they receive large monthly stipends blocks any claims of integrity. It has been discovered that some members of the news media acting as outside directors own stock in the companies they are serving. The role of a member of the board of directors is to maximize corporate value. That alone can harm the independence of the press, and that makes it clear that it is inappropriate for members of the media to serve in such capacities. The situation urgently requires that people in the media exercise self-restraint, if also for the sake of fighting the crisis faced by the press because of diminishing influence. We believe it is time for news companies to fix the details of their ethical guidelines, because the situation is one in which press ethics and business interests are in conflict. What is the use of ethical guidelines if they neglect a situation that threatens members' ethics standards?
The Hankyoreh, 4 February 2005.
[Translations by Seoul Selection (PMS)]
[Editorial] Members of Media Shouldn't be Outside Directors |
