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How Murdoch can satisfy Wall Street

by Jon Friedman
Publication: MarketWatch

July 19, 2011


 Wall Street’s eyes will be on Rupert Murdoch on Tuesday when the News Corp. chairman testifies before a British parliamentary inquiry.

 Murdoch’s appearance will come in the wake of accusations that a News Corp. publication in London, attempting to gain information for publication, hacked the telephones and emails of a murder victim and families of people who died in terrorist attacks in London.

Crucially, Murdoch must accomplish more than conventional “damage control” because damage has been done to the reputations of the global corporation and its employees. It’s up to the chairman to assure the world that News Corp. will recover from this debacle and be able to move on. (MarketWatch is part of News Corp.)

But how should the company go forward from here?

“The conventional wisdom in a reputational crisis that threatens an organization or brand is to be contrite, be truthful and be swift,” observed James O’Rourke, a management professor at the University of Notre Dame. “One further consideration that’s not often talked about: be complete. Hold nothing back.”

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Story also appeared in Hot Penny Stocks, The Daily Point, Compare the Markets and ING Direct.