Through the Looking Glass Corporate Responsibility in the Media and Entertainment Sector SUSTAINA 15577 21/5/04 5:36 Pm Page 2

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A Discussion Paper

Through the Looking Glass Corporate Responsibility in the Media and Entertainment Sector SUSTAINA_15577 21/5/04 5:36 pm Page 2

Foreword Just as we engage with oil companies about Through the Looking Glass is intended their climate change impacts, we seek to to help the sector understand what Why have WWF-UK and SustainAbility engage with the M&E sector to help them corporate responsibility means specific- chosen to produce a discussion paper on the find solutions to sustainability challenges. ally for M&E companies, as well as to media and entertainment (M&E) sector? shed light on what these companies There are, after all, other industries that are The big issue for the 21st century is are doing and will need to do next. As a much more damaging to the environment. living space — for humans as well as provocation, at the end of the paper we other species. The latest bi-annual WWF present a short ‘Media Manifesto’, rooted While the sector’s direct impact on the Living Planet Report 01 reveals that in in emerging best practice. natural environment may not be great, the developed countries we are currently living role M&E companies play in shaping how as if we had three planets, not one. If we WWF-UK and SustainAbility offer this society thinks and behaves is becoming are to move to more sustainable patterns short discussion paper as a contribution increasingly controversial. As a result, of production and consumption, the M&E to an important debate — and as an the corporate responsibilities of M&E sector will need to play a central role — invitation to M&E companies and companies extend far beyond the basic educating, informing and empowering. organisations to engage on crucial ‘good housekeeping’ activities of recycling Without the help of the media, corporations social and environmental issues. and reducing energy use. The spotlight is and governments will not receive the shifting to content. As one media executive signals they need to be able to provide Jules Peck put it, ‘the [media’s] biggest emission is its us with more sustainable products, WWF-UK programmes’. services and policies.

WWF seeks to influence decision-makers in And, of course, there have been plenty politics, business and industry so that our of good examples from both the broadcast key messages, from species protection and and print media. Erin Brockovich, The Day habitat preservation through to business After Tomorrow, The Blue Planet and other behaviour and consumption patterns, are environmental coverage by the BBC, and Seb Beloe addressed effectively and incorporated coverage of HIV/AIDS by CBS, are excellent Francesca Müller into policy initiatives. examples of the positive role the media Frances Scott can play. But the level of effort remains SustainAbility precariously limited in relation to the challenges.

‘Having taken a close look through the Contents looking glass at the media sector, I am ever more convinced of the valuable 01 Executive Summary contribution the media can make in shaping society’s attitudes towards 02 1 Setting the Scene more sustainable lifestyles we so urgently need if we are to reverse 06 2Watching the Watchdogs the damage being done to the planet. We have only one Earth — it’s time 10 3 Leaders, Laggards we started to live as though we realised that.’ 15 4 Who Pulls the Strings? Robert Napier Chief Executive, WWF-UK 21 5 The Media Manifesto

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SustainAbility / WWF-UK Through the Looking Glass Page 01 Executive Summary

Today even those who loathe the media The media’s main impact is not environ- As our benchmark of CR reports must use the media. The Taliban, to mental, but psychological and intellectual. indicates (pages 10–14), good practices take an extreme example, banned M&E companies shape public opinion and are emerging that tackle the critical television, photographs and computers, help frame the terms of public debate. questions concerning the wider indirect but now use what they called ‘tools The media is what we read, listen to and impacts of the sector, although our brief of the devil’ to refocus world attention watch. In parallel, through its close analysis of ownership and governance on the war in Afghanistan.02 A milder relationship with advertisers, the media trends (pages 15–20) suggests that much form of a double-thinking affects the also exerts a powerful influence on the more needs to be done if the sector is to sustainable development movement’s decisions we make, the products we buy, make lasting progress on this agenda. attitude towards the media and and the sort of questions we ask when entertainment (M&E) sector, which we make our everyday choices. Our ‘Media Manifesto’, presented in the is seen both as a carrier of relevant final chapter (pages 21–23), is designed news and information, and as a barrier Now, pressure is building for the sector to encourage M&E companies to focus which cocoons citizens from reality. to pay greater heed to its wider corporate on the essential issues that need to be responsibilities. Non-governmental organ- addressed if such progress is to be made. This short discussion paper by isations (NGOs), the public, governments, SustainAbility and WWF-UK summarises socially responsible investors and corporate our latest efforts to push ‘through the peers are all expressing concern about the looking glass’, probing the M&E sector, wider influence M&E companies have on and looking at how M&E companies are society (pages 06–09). responding to demands for corporate responsibility (CR). We define corporate But little of this is acknowledged by responsibility as having four linked companies in the sector itself. Where dimensions: open and transparent business corporate responsibility reports have been practices; ethical behaviour; respect for produced, they focus primarily on stakeholder groups; and strong performance companies’ direct environmental ‘footprints’ on economic, social and environmental rather than on the far larger ‘brain-prints’ issues. that they leave on their audiences. SUSTAINA_15577 21/5/04 5:37 pm Page 2

SustainAbility / WWF-UK Through the Looking Glass Page 02 1 Setting the Scene

1.1 The Media Web Sportswear Manufacturers Commercial Telev Public Relations Consultancies Sporting Events Digital Editing Suites Commercials Cartoons P Agents Cinemas Consultancies Current Affairs Reality Community Affairs Film Distributors Corporate Identities Advertising Cons Visual Identities Soap Operas Reality Television Produ ion Production Companies News Satellite Television Network Theatre Critics Live Broadcasts Co Programme Guides Local Correspondents Mime Artists awyers Cable Television Networks Weather Forecasts Blogge Trade Unions Actors Radio Stations Poetry Web Design Lobbying Vaudeville Documentaries Set Designers Phone Flash Mobbing Party Political Broadcasts Auditions Chat Spin Doctors Theatre Companies Radio Networks Drama Puppeteers Choreographers Jingles S The media sector is just one part of a web However the central thread running of industries that stretch from advertising through the web is the fact that they are and marketing through to software and all businesses that focus on mass information technology. In many ways, there communication, whether it be broadcast, is more that differentiates businesses in this print or electronic. sector than there is that unites them. SUSTAINA_15577 21/5/04 5:37 pm Page 3

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The media and entertainment And what an extraordinary influence this In 2002 SustainAbility published Good (M&E) sector is rarely at the forefront has come to be. News & Bad, an initial survey of the of the mind when major social and — In the US, for example, the average media world. 05 Since then, a growing environmental impacts are considered. person watches more than four hours range of organisations has expressed When it is mentioned, it is usually in of television a day, and sees 25,000 interest or begun activities in this area — relation to how these issues are covered commercials a year. including Business in the Community, in news, documentary and entertainment — At 20,000 advertisements a year, CSR Europe, Forum for the Future, formats, rather than the M&E sector’s American children see marginally Westminster CSR Media Forum and own corporate responsibilities and fewer than adults, but are said to WWF. The debate, however, has not accountability. But the idea that the have developed brand loyalties by moved on significantly. The focus is sector is somehow ‘low impact’ is two years of age. 04 still on the characteristics of media evaporating. — In the UK the figures are nearly as coverage, rather than stepping back impressive, with the average person to consider what wider notions of The main influence these companies have watching approximately 3.5 hours corporate responsibility (See panel 1.2) is through the messages and other content of television a day, which consumes might mean for the media world. they communicate. As Julian Eccles of 40 per cent of their leisure time. BSkyB put it, ‘Our principal emission This means that over an average This document does not repeat the 2002 is programmes.’ 03 In the process, M&E lifetime, more time is spent watching analysis that explored how the media companies shape public opinion and help television than working. reflects the wider world in the mirror frame the terms of public debate: they of its coverage (See panel 1.3). Instead, determine what we read, what we listen According to one interviewee, it is because it reports on preliminary research by to and what we watch. In parallel, through of this role that the sector should be held SustainAbility and WWF-UK,06 which their close relationship with advertisers, to a higher standard of accountability than pushes ‘through the looking glass’ and they also exert a powerful influence on others. ‘People depend on the media to considers the corporate responsibility the decisions we make, the products we form their moral frameworks and get most agenda for the M&E sector itself. The buy and the sort of questions we ask of their brain content. So the standards research focused on Europe and the when we make our everyday choices. should be higher.’ US and involved a literature review and consultation with leading figures in industry, government and civil society.

Logotypes Television Stations Certification Video Merchandisers Video Piracy Disinformat Public Safety Films TrailersPornography Animations Electronics as Reality Television Disc Jockeys Roadsigns Videotape Tour Sponsorship Consultancies Popularity Charts roduct Placement Video Hire Outlets Maverns Publicity Concerts Comedy Subtitles Test Screenings Music Television s Celebrity Endorsements Film Studios Film Production Companies DVDs loggers VHS Video MP3 Files Music Publishers esign Consultancies Marketing Managers Sampling Bootleg Cas hone-Ins ScienceFiction Media Studies Vinyl ‘Having previously explored just what the media reflects in the mirror ofRecording its Studios at Showscoverage, we nowQuestionnaires focus on what lies Media Standards Authorities Jukeboxes Tour Promoters behind the mirror — the policies and Live Venues Roadie Internetperformance Radioof the organisations that Film Posters Record Covers produce our news and entertainment.’ Groupies SearchSustainAbility Engines / WWF-UK Design Colleges Nightclubs Theme Parks Recording Labels Festivals SUSTAINA_15577 21/5/04 5:37 pm Page 4

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1.2 Corporate Responsibility Why Now? But the M&E sector will also be subject to the same corporate responsibility Nobody understands the importance A basic assumption in our work is that yardsticks as other industries. As one of language better than media people. the media plays an enormously important commentator notes, ‘McDonald's and So it is hardly surprising that loosely- role in holding other parts of society to Coca-Cola are in the business of putting defined terminology such as ‘sustainable account and, ultimately, in underpinning an stuff inside people's bellies, so everyone development’ 07 and ‘corporate respon- effective democracy. As Claude-Jean (especially the media) expects them to sibility’ have so far failed to make a Bertrand, Professor Emeritus at the French take responsibility for their nutritional major impact on the sector. Institute of the Press, has put it, ‘There can impact. Equally, Shell and BP are in be no democracy without informed citizens. the business of taking stuff out of the Stripped to its essence, corporate There can be no informed citizens without ground, so everyone (especially the responsibility requires four things of quality news media.’ 08 media) expects them to take respon- companies: sibility for their environmental impact. — open and transparent business There is also growing interest in the role of The media are in the business of putting practices; the sector in building public understanding stuff inside people's heads. But does — ethical behaviour; of sustainable development. The United anyone think they take responsibility — respect for stakeholder groups; and Nations Environment Programme recently for their cultural impact?’ 11 — strong performance on economic, called on the media and advertising sectors social and environmental issues. to promote more sustainable consumption An analogy can be found in the financial and production patterns 09 and in January community, which used to claim not 2004 the UN Secretary General, Kofi Annan, to have major social and environmental called on the media to play a responsible impacts. But leading insurers, banks role in the fight against AIDS by using their and investors now acknowledge ‘unparalleled power’. Several media groups, the significant indirect impacts that including CBS, responded by committing financial institutions have on social funds and producing editorials on the and environmental issues through their subject. 10 policies on lending and other decision- making. 12

Infomercials Local Newspapers Public Literacy Levels Underground Printers Market Research Go Informers Daily Newspapers Gossip Columns Propaganda aperback Books Journalists Pub Quizzes Il Telephone Directories Reporters T-Shirts Designer Labe Letterpress Printers Photographic Retouchers Comics Lithographic Printers Fashion Design Consultancies C cus Groups Tradrade Journals Sunday Newspapers Monthly Mag Folklore Flyposters Book Distributor Annual Reports Photographers Sunday News Information Design Lithographic Printers Paper Manufacturers Poems ScienceFiction Conventions Photographs Magazin Paper Manufacturers Book Publishers Lifestyle Magazines usiness Cards Urban Myths Edutainment Post-It Billboards Local Newspapers Leaflets Flyposters Letters to the Editor Interior Design Consultancy SUSTAINA_15577 21/5/04 5:37 pm Page 5

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Similarly, while the M&E sector may not 1.3 The Media, Corporate — The nature of the coverage is also have an enormous direct environmental Responsibility and Sustainability 13 slowly evolving. Climate change, footprint, its ‘brain-print’ is colossal. for example, originally covered But this aspect of what it would mean to Media companies act both as carriers on the science pages and often be a ‘responsible media company’ has not and barriers when it comes to corporate given unsympathetic treatment, been well articulated. responsibility and sustainable develop- is increasingly moving into the ment. As discussed in Good News & Bad, business, financial, lifestyle and Still, the need for greater clarity was thrown media coverage of key environmental and news pages. into sharp relief during 2003. Three of the social issues such as climate change and — But, and climate change is a striking best known and most respected news human rights has generally increased example, the urgency of many organisations in the world — The New York both in quantity and quality over the past of these issues is not reflected in Times, Le Monde and the BBC — have all decade, although some important caveats most media. faced uncomfortable scrutiny in relation are attached to this statement. to defects in their governance. The next — Coverage still tends to be highly For more information see decade will see growing interest in what cyclical, with peaks driven by major www.sustainability.com/media goes on ‘behind the looking glass’. international events on the issues (e.g. the World Summit on Sustain- able Development) and major controversies (e.g. genetically modified foods, CJD). — There is enormous regional variation in levels of coverage, with the EU generally leading, North America in second place and coverage of the issues in Latin America and Asia still relatively low. — A key hot-spot is advertising,(see panel 4.2) the subject of a separate SustainAbility report. 14

CD Burning International Electronics Standards

Gossip Paper Suppliers Investor Relations Computer Games Illustrations EPS Files Web Hosts Emails Mapping Laptops Labels Bloggers Chat Rooms News Groups Multimedia Exhibition Venue Software Design Consultancies

Catalogues Design Consultancy Advertisement Hoardings The Internet Virus Software Wri Magazines Dictionaries PDAs Banners Message Boards Celebrity Endorsements Newspapers PDF Files Producers Spam Product Design Consultancies rs Team Sponsorships ‘Clearly [the media] are complicit in Mobile Phones News Groups gazine Distributorsome growth trends in deeply damaging social practicesBrand and choices Manuals (food, Data Protection -It Notestransport, energy, generic consumptionEditors Sports Agents Text Messages of goods, unsatisfied compulsions to consume) — but the nature of their Online Gambling Broadband Coverage Directresponsibility Mail is difficult toSubvertorials quantify.’ Dr Joe Smith The Open University SUSTAINA_15577 21/5/04 5:37 pm Page 6

SustainAbility / WWF-UK Through the Looking Glass Page 06 2Watching the Watchdogs

2.1 Opinion Leaders Trust in Institutions

90 NGOs Media Business 80 Governments

60 51 54 50 48 47 47 46 43 40 40 41 38 35 31 32 30 28 25 27 27 24 26 20 21

% UK USA France Europe Germany

Source: 2004 Edelman Fifth Annual Trust Barometer, Study of Opinion Leaders, 9 January 2004 SUSTAINA_15577 21/5/04 5:37 pm Page 7

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Unlike other industry groups, M&E Pressure Points The Public companies have not yet experienced the full force of the corporate responsibility Five key potential sources of pressure If there are two consistent findings from challenge. While the media sector often include non-governmental organisations surveys concerning trust in different plays a central role in catalysing change (NGOs), the public, governments, socially institutions, they are first that NGOs are in other sectors, it has not — perhaps responsible investors and corporate generally trusted more than companies, understandably — turned the lens on peers. This discussion paper briefly and second, journalists and politicians itself. reviews each below. fight it out for the consolation prize (see Figure 2.1). Time after time the statistics So where will the pressure to change come show that people do not trust the media. from? Most of our interviewees thought NGOs In the US in 2003, for example, just it would have to come from outside the 25 per cent of people stated that sector. ‘There is little employee pressure The M&E sector, particularly in the US, they trusted journalists to be honest. for greater industry responsibility,’ said one seems to attract an enormous amount In contrast, the nursing profession scored M&E company representative. 15 Or audience of interest from NGOs. Specialist groups 83 per cent.17 Furthermore, the US-based pressure, we might add. So what are the such as FAIR and Adbusters work to hold Pew Research Center for People and the main sources of pressure? And what are the big M&E companies to account, while Press Poll found in July 2003 that 56 the main issues? campaigns such as ‘Take Back the Media’ per cent of people questioned said media publish lists of who buys advertising time stories and reports were often inaccurate, on news networks and then lead boycotts. and 62 per cent believed the press NGOs can powerfully influence the public generally tried to cover up its mistakes and regulators to put pressure on media rather than admit them. Figure 2.2 below companies.16 shows the credibility of some of the major broadcasters and publishers.18 The sector also faces a competitive challenge from a growing number of NGOs such as Media Lens, openDemocracy.net, TomPaine.com and IndyMedia that seek to represent views overlooked by the mainstream media.

2.2 Most Credible Daily Media Sources

90 Media

80 74

70 Media Corporation

50 49

40 40 40 38

30 30 27 26 25 25 25 24 20 21 21 19 19 17 16 16 15 13 13 14 10 11

% ITV UK FAZ NTV BBC USA CNN CNN CNBC France Die Welt Le Figaro Germany Sky News Fox News Le Monde Les Echoes Der Speigel Handelsblatt all St Journal W Financial Times New York Times New York Le Nouvel Observator

Source: 2004 Edelman Fifth Annual Trust Barometer, Le Nouvel Economiste Study of Opinion Leaders, 9 January 2004 SUSTAINA_15577 21/5/04 5:37 pm Page 8

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In Italy, disenchantment with the country’s Governments — product sustainability, including use television stations has led to a national of media channels to promote social boycott of primetime broadcasting. A strike Governments in the US and in some and environmental awareness, and in December 2003 was allegedly supported European countries such as the UK and Italy levels of exposure to gambling and by 400,000 people and a second, planned have been reluctant to take the lead in pornography; and for June 2004, is expected to involve more ensuring that media companies understand — management quality, including than a million people.19 This campaign has and address their responsibilities. 22 concentration of ownership, control found support in some unlikely places. Appetite for change within government of media content and distribution, According to White Dot, Pope John Paul II tends to be limited to voluntary initiatives, ethical business conduct, and efforts argued that ‘In many families the television although things may change if voluntary made not only to promote linguistic seems to substitute, rather than facilitate action fails to deliver greater responsibility. and cultural diversity, but also to dialogue among people. A type of ‘fast’ in In the UK, for example, Barry Cox, the tackle the digital divide. this area could also be healthy’. At the same deputy chairman of Channel 4, has time an international viral campaign, ‘Get predicted that the government will impose Just Pensions, part of the UK Social Out of the Box’, orchestrated by White Dot, tough controls on the BBC to reverse Investment Forum, also highlights for is building support for TV Turnoff Week.20 the process of ‘dumbing down’ that some pension fund trustees the key social, ethical critics believe has occurred in recent years. and environmental risks that could have ‘Media literacy’ — the ability to understand In Sweden, regulators have gone even a material impact on media companies’ the way the media works, to spot bias further in pushing ahead with bans on shareholder value.24 It warns investors that in news and to recognise accurate and advertising certain products to children. shareholder value could be put at risk by impartial news coverage 21 — is increasingly media companies dominated by a chief recognised as a core skill alongside English, executive or chairman who is also a major maths and science for people immersed Socially Responsible Investors shareholder — because strategic decisions in the media culture. This has become a may be aligned with the ambitions of the favourite theme for a number of NGOs. Morley Fund Management’s Media Sector management, rather than those of Common Sense Media, for example, an Guidelines note that ‘the exploration of the shareholders. Also, as audiences fragment, independent US non-profit organisation, indirect impacts of media companies via ‘creative departments must be adaptable aims to provide information to parents so the messages they convey . . . is yet to be to communicating with an ever widening that they can decide for themselves what tackled by the industry on a broad scale’. 23 range of cultures and interests’ in order to their children should or should not watch. They also list the criteria used to screen maximise audience figures and advertising stocks to determine their suitability for revenues. investment. Inclusion or exclusion is made on the basis of:

2.3 Key CSR Issues for the Media Industry CSR issues

Investing in and Social and Impartial and supporting staff environmental balanced output issues promoted

Data Health, safety Freedom of Corporate protection and security expression governance Common to all sectors Charitable Human rights Transparent Culturally Unique to media sector issues promoted ownership diverse output Community Plurality Privacy investment Treatment of Digital divide Informing Creative freelancers public opinion independence With distinct implications for media sector Customer Education Citizenship relationships Entertainment Piracy/theft Integrity of Transparent and gaming information and responsible editorial policy Supply chain Intellectual Audience integrity property and needs reflected copyright in output Valuing Regulatory creativity Environmental compliance and Media management self-regulation literacy

Source: KPMG LLP (UK) adapted from ‘Key CSR Issues for the Media Industry’, KPMG and Media CSR Forum, February 2004. SUSTAINA_15577 21/5/04 5:37 pm Page 9

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Peer Pressure 2.1 Does Trust Matter? Following disillusionment among Middle Eastern audiences with the The M&E sector, at least in the UK, was Lack of trust — or, indeed, of credibility — western media’s news agenda, the recently stung into action to identify its is, as one media executive put it, ‘the emergence of Al Jazeera as an important relevant CR issues after scoring poorly in biggest challenge facing the industry’. international news source is an example a survey conducted by the business group For The New York Times, the issue of trust of the trend. Founded in 1996 by the Business in The Community (BiTC). As rightly has become particularly heated following Qatar government as an independent recognised by the group, judging the CR a series of scandals in 2003, leading voice in the Arab world, Al Jazeera is performance of an M&E company against to an apology from its publisher for unusual in that part of the world in the CR performance of an oil company is what he called ‘an abrogation of trust being free from censorship and equivalent to comparing apples with pears. between the newspaper and its readers’. government control. The network’s The key issues and relevant indicators are The apology followed revelations about European subscribers have doubled since very different. stories made up by one of the paper’s the start of the Iraq war in 2003. journalists. As a result, the newspaper Partly in response to this, the Media CSR appointed an internal ethics monitor Trust is crucial for entertainment Forum, which includes a range of media and a public editor (or ombudsman) to companies as well. Disney is a brand for companies, was set up to work alongside critique the paper. which this is abundantly clear. Consumer KPMG 25 to identify what the key CR issues trust — and family trust in particular — are for the industry. Figure 2.3 shows the Trust can be seen as an essential is core to what it does. As David Shore, initial mapping of the issues. characteristic of successful businesses, director of the Trust Initiative at the particularly when operating in a highly Harvard School of Public Health, points CEOs within the industry also believe that competitive landscape. Philip Meyer, out, ‘Disney is not in the attractions or the sector’s role in society 26 is becoming Knight Professor of Journalism at the the movie business, it's in the trust an increasingly pressing issue. The World University of North Carolina, frames the business.’ 28 Economic Forum (WEF) recently found challenge this way: ‘What the new media that ‘media executives recognise the multi- forms need to capture is the favoured faceted role of media in business and position in our heads as the trusted society as large corporate entities, but also source. There isn't much room in all our as very influential in political and cultural heads. The battle should be fierce.’ life across borders.’ But the WEF team concluded that this is a set of issues for which the M&E sector currently does not feel fully prepared (see Figure 2.4). 27

2.4 How Prepared is the M&E Sector? Preparedness Low High Medium High Innovation

Evolving Role of M&E in Society Creation Catching Up of Winning to Networked Digital Consumers Medium Models Regulation & Consolidation International -ization

Low

Magnitude 0231456

Timing (Years)

Source: Adapted from World Economic Forum, Media & Entertainment Industry Monitor, 2003. SUSTAINA_15577 21/5/045:37pmPage10 % 10 20 30 40 50 60 70 80 90 © Peter Frischmuth/StillPictures SustainAbility /WWF-UK . ScoresforM&ECompanies 3.1 3 Against Benchmarks 43 Leaders, Laggards 62 19 32 BSkyB UK 24 BBC UK 24 Pearson UK 22 Vivendi Universal FR hog h okn ls Page 10 Through theLookingGlass 13 Reuters FR 10 Time Warner US 08 Walt Disney US 00 00 00 00 Viacom US

Mediaset IT

News Corporation AUS/US

GR02 Average

GR02 Leader

Media Sector Average

Media Corporation SUSTAINA_15577 21/5/04 5:37 pm Page 11

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The media plays a crucial role in Main Findings The focus for most M&E reports is on holding public and private institutions the direct effect of their immediate to account. Air time and column inches A handful of media and entertainment operations, rather than on content and are a critical factor in the success of companies have been reporting for some programming. While operational issues many NGO campaigns. But how do time. EMI, for example, although outside clearly need to be addressed, the major media and entertainment companies the scope of our benchmark, has incorpor- impact of the sector is increasingly themselves perform in addressing and ated what would have been its 11th seen to lie in this second area. reporting on their own impacts? environmental report into a full social responsibility report. Time Warner, Interestingly, for a sector that typically To better understand how M&E companies highlighted in Good News & Bad for has a low environmental footprint, many see their responsibilities 29 — and what having no report, has also now published reports score strongest on environmental they are doing about them — we reviewed its first social responsibility report. 32 performance (Figure 3.3). The BBC report, the CR reports of 10 companies in the for example, is focused almost exclusively sector. These are intended to be broadly However, it is also clear that M&E on the environment. 34 BSkyB also scored representative of the M&E sector in Europe companies must significantly improve strongly in this area, although the report and the US, taking into account the size their reporting. To put the scores shown in still fails to address impacts associated of the companies, geography, ownership Figure 3.1 into perspective, we compared with its programming. Vivendi Universal, structure and core businesses. 30 them with the results of Trust Us 33 Global however, is planning in its next report Reporters 2002 (GR02). This exercise shows to move forward and tackle the tough These M&E sector reports were assessed clearly that even the best media reporters question of the specific responsibilities using the UNEP/SustainAbility benchmark are well below average across the corporate of a media company. Vivendi Universal’s methodology, first used in 1994 and community as a whole. 2003 Sustainable Development Report 35 subsequently refined in close cooperation discusses the social responsibilities with large numbers of report producers BSkyB (owned by News Corporation), of media companies as well as their and users. 31 with 31 per cent, would have just made it relationship with the community at into the Top 50 in our Trust Us GR02 report. large. The report focuses on three key The lowest scoring report, by The Walt areas of social responsibility: Disney Company (8 per cent), is some way — responsibility with regard to minors; off. Three companies do not report at group — responsibility to reflect diversity; and level: News Corporation, Viacom and — responsibility to education. Mediaset. M&E reports from the US tend to score poorly because they rarely raise their eyes much above the relevant company’s philanthropic activity.

3.2 Breakdown of Score / Total Score Overall category erformance

40 P Management Quality

30 Context and Commitments Accessibility and Assurance

00 00 00

% IT FR FR US US US UK UK UK BBC AUS/US BSkyB earson Reuters Viacom P Mediaset alt Disney W Time Warner Time Warner Vivendi Universal News Corporation SUSTAINA_15577 21/5/04 5:37 pm Page 12

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Critical Issues For example, a fundamental part of the BSkyB has at least made some efforts job of its editor-in-chief is ‘to ensure our in this direction. For example, it has Governance editorial output complies with the Trust measured the extent of subtitling on Sky Principles’. Guardian Newspapers Ltd News. It has also set itself future targets Reports are generally weak on measuring (not included in the benchmark survey) to help drive increased levels of subtitling how the respective company performs also explicitly states that its Living Our in the company’s programmes. against governance structures, including Values report is intended to ensure that both regulatory charters or licences and the company’s operations are consistent voluntary values, codes or polices (e.g. with the values of the Scott Trust, its Design and Communication editorial, environmental or social). For ownership company. example Granada (now merged with When exploring a sector whose business Carlton to form ITV plc and not included Time Warner also reports on performance is to engage viewers, listeners and readers, in the benchmark survey) has an ethical against a number of internal policies we would have expected to see some statement that clearly acknowledges covering freedom of expression, responsible innovative and creative reporting, with its accountability for potential influence guidance on entertainment and consumer the media being used effectively to on public perception with regard to choice, although this coverage is fairly communicate positions on corporate the environment. However, in its 2002 cursory. responsibility. We were disappointed. social responsibility report, there is no The clear challenge for the M&E sector consideration of how it has performed is to lead with their efforts to engage against this management standard. Performance members of the public on corporate responsibility issues. The reports we reviewed mostly failed Reports are generally descriptive and to disclose what standards, principles or qualitative, lacking useful performance As Solitaire Townsend of Futerra codes of conduct the reporting companies indicators. This is perhaps unsurprising Sustainability Communications puts it, use to address content or editorial issues given that the CR agenda is relatively new ‘the media sector is packed with creative (e.g. political bias, violence or adult to most media companies. The challenge people who might be able to bring these entertainment). Several reports do for the sector is to develop relevant dry reports to life, experiment and do acknowledge their ‘gatekeeper’ respon- indicators for some of the intangible CR what no company has done before — sibilities, but discussion of these issues, such as the influence companies engage the public with their CSR.’ responsibilities is generally sketchy. have on their audience, how they contribute to wider media ‘literacy’ and how their Reuters is the company whose report products help to inform public opinion stands out in this regard. It details how about key issues, in addition to metrics the Reuters Trust Principles are enshrined relevant to their governance, policies and applied in the company. and related systems.

3.3 Breakdown of Performance Score Performance category Social Economic 40 Environmental Multi-dimensional

00 00 00

% IT FR FR US US US UK UK UK BBC AUS/US BSkyB earson Reuters Viacom P Mediaset alt Disney W Time Warner Time Warner Vivendi Universal ews Corporation SUSTAINA_15577 21/5/04 5:37 pm Page 13

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Emerging Good Practice Coverage of Social and Environmental Reuters undertakes journalistic training — Issues workshop topics include international, It is not however all bad news. Listed below business and environmental news, conflict are some examples, taken from websites The BBC states that because of its legal and post-conflict reporting and health and reports, of how M&E companies are obligation to be impartial, it cannot take reporting. Reuters also contributes to addressing the critical indirect impacts of on the role of environmental campaigner, public awareness and understanding of their activities. particularly where there are political issues environmental issues through its reporting involved — although what it can do is meet and provision of news and pictures to its responsibility to educate, inform and to the Planet Ark environmental website. Transparent and Responsible be factual and accurate in its environmental Editorial Policy coverage. It states in its report that it Walt Disney provides public service produces a wide range of programmes announcements dedicated to the The BBC’s editorial values cover impartiality, and media covering diverse aspects of reduction of pollution and promoting accuracy, fairness, giving a full and fair view environmental, sustainable development recycling and waste minimisation for of people and cultures, editorial integrity and wildlife protection issues. Earth Day. and independence, respect for privacy, respect for standards of taste and decency, BSkyB has a commitment to ‘assess how avoiding the imitation of antisocial and to further our corporate responsibility Diverse Output criminal behaviour, safeguarding the aspirations in relation to the output of welfare of children, fairness to interviewees, our channels’. The BBC has a diversity database to respect for diverse audiences in the UK, and help programme makers find new faces independence from commercial interests. Pearson 36 sees newspapers and online and voices that better reflect the full sites as an important channel for helping diversity of UK society. The database Reuters’ news operations are based on to shape the debate on key social issues lists contributors and experts who have the Trust Principles, which stipulate that and has published indices of corporate either minority or specialist interests on integrity, independence and freedom from responsibility and environmental manage- mainstream issues (e.g. architecture from bias must be upheld at all times. Editorial ment for a number of years. For the past a multi-cultural perspective) or expertise policy also includes its position on covering 10 years, the Financial Times has supported in minority or specialist fields (e.g. wars or conflicts. Directors and employees campaigning organisations such as Business access for people with disabilities). commit to upholding the Trust Principles in the Community and the International And, following a commitment to provide when they sign the Reuters Code of Business Leaders Forum to bring their high-profile mainstream disability Conduct on joining the company. work to a wider audience. The FT has also coverage, the BBC is developing a teamed up with Dorling Kindersley to ‘portrayal policy’ and action plan that Time Warner reports that it is dedicated publish Everybody’s Business, a handbook includes training for staff, encouraging to journalism that is free from outside that helps managers to put corporate producers to include disabled people influence and control, and that respects responsibility on the mainstream business in its programming (e.g. in studio people’s right to know. Journalism is agenda. Through its Longman brand, it has audiences and participants in chat founded upon a tradition of innovation, published a range of books which tackle shows) and monitoring the treatment integrity and independence — values laid HIV/AIDS and related issues. of disability issues on screen. down by the co-founder, Henry Luce.

‘We produce progressive and ‘Overall transparency on corporate enlightened newspapers, as well as responsibility activities and performance writing regularly about corporate social is poor, with much of the reporting responsibility. [In reporting], we wanted patchy, descriptive, and biased away to reassure ourselves — and others — from performance data. The good news that we measure up to the high is that this situation seems to be standards our editorials expect of improving.’ other companies.’ My-Linh Ngo ‘Living Our Values’ SRI Analyst The Guardian Henderson Global Investors Ltd SUSTAINA_15577 21/5/04 5:37 pm Page 14

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BSkyB, through the Broadcasting and Digital Divide Time Warner, through its Foundation, Creative Industries Disability Network has a focus on ‘building 21st century (BCIDN), is committed to increasing the As part of its Broadcaster’s Disability literacy’ which involves ‘the ability to presence of disabled people on air and Network Action Plan, the BBC aims to manage information, to use new and in its offices. It also reports that it has increase access to its services, including traditional technology, to communicate undertaken awareness training for committing to 100 per cent subtitling effectively’. The Foundation held a summit producers regarding the portrayal of by 2008 on digital terrestrial channels. in collaboration with the Bertelsmann disability. Foundation to examine the new meaning BSkyB is the only company to have an of literacy in the information age. Time Warner makes brief reference in indicator on subtitling (and audio its report to the ‘broad and rich range of description). It is committed to increase [Time Warner] products and services which subtitling on Sky News to 80 per cent. reflect the diverse races, religions, sexual The company also states that it is a orientations, backgrounds, interests and member of the VISTA (Virtual Interface cultures’ of its customers. One of Time for Set-Top box Agent) project, which Warner’s Values is diversity: ‘We attract researches ways disabled people can and develop the world’s best talent — access broadcast services. The company seeking to include the broadest range also has a commitment to ensure the of people and perspectives.’ positive portrayal of disability in the media.

Entertainment and Gaming Media Literacy

BSkyB is working with GamCare to develop BSkyB recognises that if children are to a code of practice on interactive gambling, understand fully and be able to judge what and is committed to working with all they are watching, they need to develop betting partners within the Sky Active critical and discerning attitudes. It is service to support them in adopting the involved with Media Smart, established Code of Practice for Interactive Gambling. by advertising businesses to help primary school children interpret and understand Vivendi Universal, through its Canal+ advertising. Group, has been working with the French Ministry of Culture and Communication to protect viewers from broadcasts of X-rated films.

‘Our CSR report comes out daily — although, yes, perhaps we should have more in it about sustainable development issues.’ Robin Esser Daily Mail SUSTAINA_15577 21/5/04 5:37 pm Page 15

SustainAbility / WWF-UK Through the Looking Glass Page 15 4 Who Pulls the Strings?

Our survey of M&E sector reporting In addition to the sensitivity of any such Consolidation and Scale (Chapter 3) suggests that most M&E links in a presidential election year, there companies need to do more, and that were allegations that Disney’s decision The growing concentration of the M&E their reporting needs to evolve. might have been shaped by concerns about industry is well documented. Around the One reason why the pressures on the the film’s likely effect on relations with world, a small number of very large sector are likely to grow is that public Jeb Bush, the president’s brother and companies dominate news and entertain- concern is being fuelled by the wave governor of Disney’s home state, Florida. ment. In the US, for example, five of consolidation that has created a Similarly, there has been a great deal companies — Viacom (owner of CBS), number of hugely powerful M&E giants. of press coverage recently of the Bush Disney (ABC), News Corporation (Fox), This in turn affords some of these administration’s attempts to silence General Electric (NBC) and Time Warner — giants considerable political leverage. debate about its record on climate change, control about 75 per cent of the production which has been sparked by the Hollywood of primetime television viewing. Figure 4.1 The sensitivity of such issues was blockbuster The Day After Tomorrow. sketches ownership patterns in the sector. underscored recently by the controversy around Disney’s hesitation to allow its Whatever the facts of the matter, such With this concentration, inevitably, comes subsidiary Miramax to release Fahrenheit controversies are guaranteed as the influence and power. As activist Jeremy 9/11, the latest film by Michael Moore. worlds of politics, business and the Rifkin argues in The Age of Access, 38 ‘the As the Financial Times reported, the political media increasingly collide and interlace. old giants of the Industrial Age — Exxon, sensitivity of the film, ‘exploring alleged In this chapter, we look at the issues of General Motors, USX and Sears — are giving links between the family and government consolidation, scale and leverage, before way to the new giants of cultural capitalism of President George W. Bush and prominent turning to three areas where M&E — Viacom, Time Warner, Disney, Sony, Saudis, including relatives of Osama bin companies will need to focus: transparency, Seagram, Microsoft, News Corporation, Laden,’ meant that Disney was concerned accountability and governance. General Electric, Bertelsmann and PolyGram. about allowing it into cinemas under [These companies] are locked in an epic its brand. 37 struggle to control the communications channels and cultural resources that together will make up much of the commercial sphere in the 21st century.’ SUSTAINA_15577 21/5/04 5:37 pm Page 16

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One source of influence these companies Others, however, argue that such Barry Diller, chairman and CEO of exert is through their role as ‘gatekeepers’ concerns are overblown, that size does IAC/InterActiveCorp (formerly of Fox Inc in an increasingly networked economy. not necessarily imply compromised quality. and Paramount Pictures Corporation) argues Sumner Redstone of Viacom has spotlighted The bottom line, they say, is that owner that consolidation is inevitable, but that the benefits, as he sees them, of mega- interference is probably the exception rather regulation is needed to maintain a share media monoliths: ‘The crossover benefits than the rule. And the owner of a larger of the market as independent. As he put it among Viacom divisions are almost endless. media company may be just as likely — in a Newsweek column, ‘At least 30 per cent We can show Paramount movies on or unlikely — to interfere with content of all programming by any definition should thousands of screens around the world, as the owner of a small company. be independent [that is not owned by the including our own. We can turn our books programme distributor].’ 42 A point echoed into movies, our movies into television For many NGOs, a more critical issue is by Andrew Graham, a board member at the shows, and we can sell, air and syndicate commercial interference in media and UK’s Channel 4, who has asserted that the those television shows on our stations as entertainment. Indeed, the cross-overs BBC should hold at least 30 per cent of the well as others. We can publish the music that Redstone described so enthusiastically market in the UK to provide ‘critical mass’ of the sound tracks and advertise and raise real concerns over the influence such and act as a quality setter. 43 merchandise it all over the globe. We can commercial interests can have on what cross-sell across the MTV Network, CBS, media companies choose to cover and My-Linh Ngo, an SRI analyst at Henderson Infinity; we can cross-promote, as MTV did how they do so. More generally, David Global Investors Ltd, takes a slightly for Survivor on CBS; we can be the best Edwards, author of Free to be Human different tack, suggesting that ‘with place for advertisers since we have the best and editor of Medialens, cites research increasing de-regulation, consolidation platforms in outdoor advertising, radio, that demonstrates that media projects is a reality, seen to be necessary for a cable and television.’ 39 ‘unsuitable for corporate sponsorship company’s global competitiveness, but tend to die on the vine.’ A point that is [particularly with regard to the broadcasting backed up by the Pew Centre for People sector] it is essential that this occurs with Is Consolidation a Problem? and the Press which found in 2000 that the right systems and policies in place to more than one third (35%) of nearly 300 ensure individual companies and their For some commentators, this type of US journalists said that news that would subsidiaries can maintain product and consolidation is the problem. As Ben hurt the financial interests of a news service quality, impartiality and integrity’. Bagdikian argued in The Media Monopoly, organisation often or sometimes goes That in turn underscores the key role of ‘the deeper social loss of ‘giantism’ in the unreported, while slightly fewer (29%) governments and regulators. media is not in its unfair advantage in say the same about stories that could profits and power; this is real and it is adversely affect advertisers. 41 serious. But the gravest loss is in the self- serving censorship of political and social ideas, in news, magazine articles, books, broadcasting and movies.’ 40

‘More than one third (35%) of nearly 300 US journalists said that news that would hurt the financial interests of a news organisation often or sometimes goes unreported.’ SUSTAINA_15577 21/5/04 5:37 pm Page 17

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2003 Revenues 2003 Revenues 2003 Revenues 2003 Revenues 2003 Revenues 2003 Revenues $39.6 billion $30.1 billion $28.4 billion $26.6 billion $19.8 billion $17.5 billion Chair/CEO Chair/CEO Chair/CEO Chair/CEO Chair/CEO Chair/CEO Richard Parsons Jean-René Fourtou George Mitchell/Michael Eisner Sumner Redstone Gunther Thielen Rupert Murdoch Employees Employees Employees Employees Employees Employees 80,000 61,815 112,000 117,750 73,221 37,000

Film/Television Film Film Film Television Film Theatres Production/Distribution Production/Distribution Production Networks 20th Century Fox, Fox Warner Bros. International Theaters Universal Studios, Universal Walt Disney Pictures, Touchstone Paramount Pictures, MTV Films, 11 across Europe Searchlight Pictures, Fox Network Pictures, October Films (majority Pictures, Hollywood Pictures, Nickelodeon Movies, BET Films, Television Studios The WB interest), Universal Studios Caravan Pictures, Miramax Films, Paramount Home Entertainment Radio Cable Channels Home Video, United International Buena Vista Home Video, Buena Other Networks Television HBO, CNN, TBS, Turner South, Pictures (33% international Vista Home Entertainment, United Cinemas International 8 across Europe Satellite TNT, Cartoon Network, Turner distribution), Cinema Buena Vista International (50%), Famous Players theatre Production/Distribution DirecTV (largest Satellite TV Classic Movies, Time Warner Cable International BV (49% video chain, Blockbuster Video 260 programs reaching 250+ provider in US), BskyB (UK) , Production/Distribution distribution) Television million viewers worldwide. FOXTel (Australia), Phoenix Warner Bros, Warner Bros Studios, Theatres Networks Television Largest non-US TV distributor Television (China), Sky Italia WB Television, Hanna-Barbera Cineplex Odeon Corporation ABC Networks in the world. (Italy) Cartoons, Telepictures Productions, (42%), Cinema International Cable Channels CBS, UPN Cable Witt-Thomas Productions, Castle Corporation (49%), United ABC Family, The Disney Channel, Cable Channels Music Fox News Channel, Fox Rock Entertainment, Warner Cinemas International (49%) Toon Disney, SoapNet, ESPN Inc. MTV, MTV2. Nickelodeon, BET, BMG: Arista Records, BMG Movie Channel, FX, National Home Video, New Line Cinema, (80%, includes ESPN & ESPN2, Nick at Nite, TV Land, NOGGIN, Ariola, BMG Canada, BMG Japan, Geographic Channel, SPEED Fine Line Features, Turner Original Television ESPN News, ESPN Now, ESPN TNN, VH1, Spike TV, CMT, BMG Ricordi, BMG UK & Ireland, Channel, Fox Sports Net, Fox Productions Production/Distribution Extreme, Classic Sports Network, Comedy Central, Showtime, Jive Records, Milan Records, Sports (17 local/regional cable CANAL+ (51%, European pay-TV ESPNHD), A&E Television (37.5%, The Movie Channel, Flix, RCA Records, RCA Label Group — stations), Sunshine Network, Music provider), Universal Television with Hearst and GE), The History Sundance Channel Nashville, RCA Victor Group, Madison Square Garden Warner Music Group: Atlantic, Big Group (production and Channel (with Hearst and GE), Local Stations Tablao, Windham Hill, Zomba Network, FOXTEL, SKYPerfecTV, Beat, Breaking, Igloo, Lava, Mesa / distribution), Brillstein-Grey Lifetime Television (50%, with Over 35 local TV stations, Music Group. Bertelsmann STAR, Stream Bluemoon, Modern, Rhino Records, Entertainment (50%, Hearst), Lifetime Movie Network including WCBS in New York and owns copyrights to more than Local stations Elektra Entertainment Group, production), Multimedia (50% with Hearst), E! Entertain- KCBS in Los Angeles 700,000 songs 34 stations including 2 each Asylum, Warner Brothers Records, Entertainment, USA Networks ment (with Comcast and Liberty Production/Distribution in NY, LA and Chicago. Warner Nashville, Warner Alliance, Inc. (43%), Universal Pay Media) Spelling Television, Big Ticket Publishing Warner Resound, Warner Sunset, Television (international International Channels Television, King World Books Radio Reprise, American Recordings, distribution), plus partial The Disney Channel UK, Productions Random House Publishing: Fox Sports Radio Network Giant, Qwest, Warner Music ownership of: HBO Asia Telecine The Disney Channel Taiwan, Alfred A. Knopf, Ballantine, International, WEA Telegram (Brazil) Cinecanal (Latin The Disney Channel Australia, Radio Bantam Dell Publishing Group, Music America), Showtime (Australia) The Disney Channel Malaysia, Infinity Broadcasting: over 175 Broadway, Crown Publishing Festival Records, Mushroom Publishing Star Channel (Japan), Telepiu The Disney Channel France, AM and FM stations located in Group, Doubleday, Pantheon, Records Books (Italian pay television) The Disney Channel Middle East, 22 states in the nation's largest Random House UK, Transworld, Time-Life Books: Time-Life The Disney Channel Italy, markets Sudamericana, C. Bertelsmann, Publishing International, Book-of-the-Month Music The Disney Channel Spain, Karl Blessing Verlag, Goldmann, Newspapers Club, Paperback Book Club, History Universal Music Group: MCA ESPN Inc. International Ventures, Publishing Siedler Verlag, Wolf Jobst Sielder US: New York Post. UK: News Book Club, HomeStyle Books, Records, MCA Records Nashville, Sportsvision of Australia (25%), Simon & Schuster: Pocket Books, Verlag, Plaza & Janes (50%), International, News of the Crafter's Choice, One Spirit Polygram, Motown, Decca ESPN Brazil (50%), ESPN STAR Scribner, The Free Press, Fireside, Grijalbo Mondadori (50%) World, The Sun, The Sunday International, Little Brown and Records, Deutsche Grammophon, (50%) — sports programming Touchstone, Washington Square Magazines Times, The Times of London. Company, Bulfinch Press, Back GRP Recording Company, throughout Asia, Net STAR (33%) Press, Archway, Minstrel, Pocket US: Family Circle, Fast Company, Australasia: Daily Telegraph, Bay Books, Warner Books, Warner Geffen/DGC Records, Universal owners of The Sports Network of Pulse Inc., Fitness Parents, YM. Fiji Times, Gold Coast Bulletin, Vision, The Mysterious Press, Records, Rising Tide, Interscope Canada Europe: 20 additional titles. Herald Sun, Newsphotos, Warner Aspect, Warner Treasures, Records, Hip-O Records, Production/Distribution Internet Newspapers Newspix, Newstext, NT News, Leisure Arts, Sunset Books, TW Kids Universal Music and Video Buena Vista Television, MTVi Group, CBS Internet Group, 5 newspapers in Germany and Post-Courier, Sunday Herald Magazines Distribution, Universal Music Touchstone Television, Walt Nickelodeon Online, BET.com Eastern Europe Sun, Sunday Mail, Sunday Time, Fortune, Business 2.0, Life, International, MCA Music Disney Television, Walt Disney Tasmanian, Sunday Territorian, Sports Illustrated, Inside Stuff, Publishing, Interscope Music Television Animation Theme Parks Others Sunday Times, The Advertiser, Money, People, Who Weekly, Publishing, All Nations Catalog, Local Stations Paramount Theme Parks Arvato AG: printing, services The Australian, The Courier- Entertainment Weekly, The Ticket, Universal Concerts (concert 10 stations including KABC (Los (incl. logistics, multimedia and Mail, The Mercury, The Sunday InStyle, Southern Living, Progressive promotion) Angeles), WABC (New York City), Others IT), calendar publishing, specialty Telegraph, Weekly Times Farmer, The Parent Group, Sunset, WLS (Chicago), WJRT (Flint), The Viacom Outdoor Group (TDI publishing, storage media, Magazines The Health Publishing Group, Internet KFSN (Fresno), KTRK (Houston), Worldwide, Westwood One) and ‘knowledge management’ InsideOut, donna hay, Asiaweek (Japan), Dancyu (Japan), Production WPVI (Philadelphia), WTVD DirectGroup: direct-to-consumer SmartSource, The Weekly Wallpaper (UK), Field & Stream, Universal Studios New Media (Raleigh-Durham), KGO (San media commerce of Bertelsmann Standard, TV Guide (partial) Freeze, Golf Magazine, Outdoor Group, Universal Studios Online, Francisco), WTVG (Toledo) AG, such as book clubs, music Books Life, Popular Science, Skiing Universal Interactive Studios clubs and eCommerce Harper Collins Publishers, Magazine, Snowboard Life, Ride (software and video games), Radio Regan Books, Zondervan BMX, Today's Homeowner, Verge, Universal Digital Arts, Interplay Radio Disney, ESPN Radio Yachting Magazine (majority ownership — video (syndicated programming) and Sports Teams game producer), Vizzavi over 60 local US stations. Los Angeles Dodgers, New York Internet (European multi-access portal) Knicks (partial ownership), AOL: America Online, AOL Instant Websites Music New York Rangers (partial Messenger, AOL.com portal, AOL Universal.com, Education.com, Buena Vista Music Group, ownership), Los Angeles Kings Europe, AOL MovieFone Flipside.com, GetMusic (online Hollywood Records (popular (partial ownership), Los Angeles Others music retailer), @viso (50% with music and soundtracks for Lakers (partial ownership) Netscape Communications, Softbank), Allocin, Bonjour.fr, motion pictures), Lyric Street Others Winamp, CompuServe Interactive, Ad2-One, Atmedica, Scoot, Records (Nashville based country Dodger Stadium, Staples ICQ, Spinner.com, iAmaze, EMusic.com, Duet (with Sony), music label), Mammoth Records Center (partial ownership), Amazon.com (partial), Quack.com, MP3.com (popular and alternative music Madison Square Garden DrKoop.com, Legend (Chinese, label), Walt Disney Records (partial ownership) National 49%), Africana.com Rugby League (Australia), Internet Broadsystem, Fox Interactive, Services Production/Development NDS, News Interactive, News Road Runner, Warner Publisher Disney Interactive, ABC Internet Outdoor, Nursery World Services, Time Distribution Services, Group, ESPN Internet Group Pathfinder Websites Retail ABC.com, ABCNews.com, Warner Bros. Stores & Products Oscar.com, Disney.com, Theme Parks Family.com, ESPN.com, Warner Brothers Recreation Soccernet.co (60%), NFL.com, Enterprises NBA.com, NASCAR.com, Sports Toysmart.com (partial), Go Atlanta Braves, Hawks, Thrashers, Network Goodwill Games, Turner Sports, Philips Arena 4.1 Media Ownership Others Turner Learning, CNN Newsroom (for classrooms), Turner Adventure Learning, Turner Home Satellite

Source: This is not intended to be compre- hensive but is based on information collated by Free Press www.freepress.net/ownership SUSTAINA_15577 21/5/04 5:37 pm Page 18

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4.2 Without Fear or Favour: This is leading to growth in the Checks and Balances: Advertising and its Bearing amount of ‘subversive advertising’ The Media and Government on Content such as product placements or newspaper advertorials, sometimes This is where the issue of political leverage Advertising represents an increasingly masking as editorial. comes to bear. The influence of commerce important feature in the wider media — Messages to children is perhaps on media content is obviously a concern, sector. This is not only from the pers- the most controversial area of but more troubling is the sometimes pective of the impact that advertisers can advertising. Michael Moore, for unhealthily close relationship between have on the content and tone of news example, in his best-selling book politics and the media. A century ago, and entertainment, but also because Stupid White Men, drew attention to historian Thomas Carlyle characterised the of the role that advertising plays in Channel One’s practice of providing press as an additional branch of government promoting consumption more broadly. educational material to US schools — a ‘Fourth Estate’. 47 Separating these Among the specific concerns are: when 80 per cent of the content powers is clearly as essential for media and — The dependence of many media on comprises advertising and government as it is for party politics, the advertising income, which creates promotions. 46 legislature and the judiciary. a tension between editorial values and the needs of advertisers. In contrast, The Guardian in the UK It is tempting to think that in mature As one interviewee put it, ‘if GM reveals in its Living Our Values report democracies the media and government has a 6 per cent stake in a media that it faced a dilemma over have achieved a clear separation and company, they are not going to whether to retain adult chatline independence from each other. But, pull the Hummer ads.’ 45 advertisements which contribute according to a 2003 Harris poll, 72 per cent — The boundaries between content £350,000 in annual revenue but of of the American public believes that the and advertisements are becoming which more than half of its news media has too much power and blurred. Technologies that allow readership disapproves. Ultimately, influence in Washington DC. 48 And in the viewers to fast forward through the company chose to drop the UK, the Hutton Report exposed the tactics commercial breaks are forcing adverts on account of ‘a sense of employed by the government in trying to advertisers to become more duty to the reader and the influence the BBC. sophisticated in how they reach community’. their target audiences. Rupert Murdoch, head of News Corporation, probably provides the most prominent recent example of an uncomfortable closeness between media and government. He has long been criticised for his often overt role in influencing politics and political processes. ‘If Murdoch didn’t own (at the time) 36 per cent of the newspapers supporting a Conservative government, he would never have got where he is,’ claimed Michael Grade, a former member of the BBC Board of Governors and now the new chairman. 49

‘For Berlusconi, TV is exclusively a medium to make money, a large advertising mine to be tapped. Programmes are spaces to fill between ads.’ 44 Furio Colombo Editor, L’Unit SUSTAINA_15577 21/5/04 5:37 pm Page 19

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Subsequently, Murdoch switched his Transparency and Accountability He lists 60 ‘media accountability systems’ support to New Labour — and found the that provide means for journalists to listen UK’s 2002 Communications Bill turned Resolving such issues is largely a political to the public and improve services. Among out to suit his interests (suspiciously) well. challenge. But whoever owns a given the examples: Bruce Page in The Murdoch Archipelago M&E company, increasing transparency —the use of websites to teach the talks of a government head of department is one key way of ensuring that it is more public how to evaluate the media explaining why the recommendations of an accountable to stakeholders. As a minimum, (e.g. www.gradethenews.org); independent committee on digital television such companies should ensure they — media reporters assigned to keep had been ignored: ‘The requirements of can demonstrate that the selection and watch on the industry and give the Downing Street were perfectly clear. development of key services or products public full, unprejudiced reports Nothing was to be done which might are free from hidden influence. In this (e.g. David Shaw of The Los Angeles upset Murdoch and his friends.’ 50 regard, transparency would include: Times); — outlining policies and safeguards for — watchdog agencies set up by media- editorial independence; related industry to filter contents ‘Berlusconismo’ — providing information on any political and provide ethical guidelines orientation; (e.g. Bureau de Vérification de la Close relationships between media and — declaring sources of funding, Publicité in France); and government have reached new heights in biggest advertisers, sponsors and — ombudsmen or readers’ editors Italy, where the term Berlusconismo has production subsidies; (now common appointments by entered the vocabulary. Prime Minister — communicating information on the the UK broadsheets). Silvio Berlusconi owns Italy’s three main company’s policies (editorial, code private television channels and its largest of conduct, ethics, advertising) and But how far should M&E companies go? publishing house, raising issues about on the degree of compliance; The authors of Environmental Change: conflicts of interest. — ensuring that advertisements are Communicating the Issues 53 note that clearly identified; the requirement for the media to adhere In 2003, for example, the state television — instituting procedures for complaints to due impartiality ‘means the freedom to company RAI banned a satirical item on and imposing penalties for misleading be impartial about matters of politics or Berlusconi following pressure from the reporting; and culture within a socially agreed framework’. Prime Minister. Opposition politicians — making public any lobbying activities, But the authors also stress that ‘a broad- denounced the move as censorship. More direct and indirect. caster is not expected to be impartial recently, in May 2004, the chairwoman of about theft or murder, for instance. RAI resigned, citing the ‘illegal conditions’ That said, holding M&E companies account- Being neutral on sustainable development under which the board was forced to able for their wider influence is far from is not exercising due impartiality, it only operate, given Berlusconi’s dominant straightforward. Professor Claude-Jean legitimises an indefensible view way influence. 51 Furio Colombo, editor of Bertrand of the French Institute of the outside the international consensus’. (See L’Unit, has argued that RAI’s subservience Press is an advocate of accountability as an panel 4.3) to Berlusconi effectively gives him 90 essential way of developing the trust that is per cent control of Italian television: necessary if the media are to perform their ‘[Berlusconi] controls information so proper function in democratic societies. that people think what he wants them to think. Mussolini used tanks, Berlusconi uses his control of the media.’ 52

‘I owe a lot to my early years in the advertising world. I just wish we could have put all that energy and imagination into something better than flogging cars and fags.’ Lord Puttnam SUSTAINA_15577 21/5/04 5:37 pm Page 20

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4.3 Impartiality and the Media Governance That said, actions M&E companies can take on their governance include: The BBC’s charter requires the There was little consensus among our — setting up a board-level committee corporation to cover ‘even-handedly interviewees concerning the role corporate with responsibility for dealing those issues that are generally accepted governance should play in addressing such with corporate responsibility issues, as being legitimate areas of public issues. For some, editorial independence was including commercial and political debate’. 54 The authors of Environmental sacrosanct. ‘The board does not and should independence; Change: Communicating the Issues offer not have much control — it’s the editors — in parallel, setting up independent wider recommendations for how M&E who have control and they should not be advisory groups, with participation companies should tackle environmental influenced,’ argued Robin Esser of the UK’s from NGOs, audience representatives, and other corporate responsibility issues. Daily Mail. Michael Grade (at the time of the financial community and other Among other things, they suggest that our discussion a member of the board of stakeholder groups to reinforce companies: governors at the BBC and now appointed such committees; — cover environmental issues across chairman) was equally adamant: ‘It should — articulating the company’s core a range of programming, from news not come from the board. This is a ‘hearts values and putting in place systems to current affairs to entertainment and minds’ business — you need the editors that embed these values; and campaigns; and producers.’ — using external standards of corporate — find ways of representing complex governance to establish best practices environmental problems in an While this is understandable, experience (e.g. Higgs Code of Corporate accessible, relevant and interesting elsewhere suggests that corporate Governance in the UK); and manner; responsibility programmes do not work — declaring the interests of board — cover global as well as national without high-level support from the CEO members, including the nature and and local environmental agendas; and the board. M&E companies may claim extent of interests in other media — give a balanced view of scientific ‘special status’, but they also operate within companies and other market sectors. research; a social framework. Corporate governance — examine the economic and plays a key role in aligning corporate The problem often isn’t so much that these political aspects of environmental practices with the relevant norms and guidelines and policies don’t exist, but that problems; and values. where they do, they are not adequately — support the effective regulation implemented. According to Steve Rendall, of advertising. Various interviewees stressed the a senior analyst at FAIR, 55 ‘in the media constraints imposed by current M&E sector industry today you have what companies business models. So, for example, Oliver say about how they behave, how they Karius of Zurich-based Sustainable Asset actually do behave, and how they should Management notes that companies in behave. The three are entirely different.’ this highly competitive sector find it very hard to break out of the ‘ratings loop’. Responsible companies need clear policies, If they fail to supply what the audience but they also need to report publicly on wants, their ratings go down, triggering how they are implemented. Indeed, the potential negative feedback such as sector could take a leaf out of the books reduced advertising revenues. of companies such as Johnson & Johnson and Unilever, who have learned to report not just on their values and governance systems, but also on their implementation — and on the impact that these policies have. To give some sense of practical next steps, Chapter 5 builds on current best practice to sketch out a ‘manifesto’ for M&E companies.

'In the media industry today you have what companies say about how they behave, how they actually do behave, and how they should behave. The three are entirely different.' Steve Rendall FAIR SUSTAINA_15577 21/5/04 5:37 pm Page 21

SustainAbility / WWF-UK Through the Looking Glass Page 21 5 The Media Manifesto

Other sectors of business and industry So what should M&E companies do? Media Manifesto have found themselves forced to face To encourage discussion, we offer our tougher transparency and accountability ‘Media Manifesto’ (See panel overleaf). For corporate responsibility programmes demands than the media. This is the risk The key point is that these sectors currently to engage and work effectively, they for the M&E sector, in several senses. lag behind many others, not simply because need to be aligned and integrated with True, the societal changes facing these they have less of a direct impact but also existing corporate cultures. But to help sectors are rated by the World Economic because they have been slow to pick up drive the necessary changes, they must Forum (Figure 2.4) as less urgent than on the importance of their profound also be long-sighted and creative. Each problems such as internationalisation indirect impacts. M&E company or organisation will have and evolving digital business models, but its own particular ways of addressing the the level of potential risk is seen to be This is clearly the start of an urgent and issues discussed in Through the Looking relatively high and industry preparedness important journey for the sector. The route Glass — and will need to define what to respond relatively low. and final destination may still be unclear, corporate responsibility means for them but what is guaranteed is that we have and their operations. But some clues very little chance of successfully addressing have emerged in terms of evolving the major social and environmental issues good practices. Our ‘Media Manifesto’ that confront our planet without the contains some key points and questions wholehearted and enthusiastic commitment to facilitate the discussion on what of the M&E sector. corporate responsibility means for the sector. SUSTAINA_15577 21/5/04 5:37 pm Page 22

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5.1 Media Manifesto 1 2 3 Spotlight Retune Broadcast, Impacts Priorities Narrowcast

Key Points Too often, as we have seen, Many M&E companies, perhaps A central key benefit provided M&E companies think of direct most, have adopted statements by the media is transparency impacts — particularly positive of their ethical and/or business in the worlds of government, direct impacts — and imagine principles. Vivendi Universal is business and civil society. that the challenge can be committed to ‘living’ its values. To play that role credibly adequately addressed with To ensure these values are more and to the best effect, M&E a few recycling schemes and than just words, it publishes companies themselves need public service announcements. Programme de Vigilance which to be transparent. No-one would argue that the sets out rules of conduct for sort of special spots that MTV living its values. Think of CBS, which was has done on HIV/AIDS, for criticised when its 60 Minutes example, should be dropped, Gannett (The US’s largest current affairs programme but such philanthropy should newspaper group) has guidelines promoted a book published by not blind us to the over- for the ethical conduct of Simon & Schuster, owned by whelming importance of the newsrooms and procedures in CBS owner Viacom. As a result, indirect impact of the M&E place to monitor compliance. CBS has decided to inform companies. However, such statements can viewers of any potential lack traction unless constantly conflicts of interest. Sometimes reinforced and, even if they such information can be have traction, they may be broadcast, but increasingly overtaken by events. best practice sees M&E companies narrowcasting, often on digital channels, to particular stakeholder groups.

Questions for the Media What are the significant Do we have an up-to-date set Given the priority issues indirect impacts of our content of ethical business principles? identified under 1 and 2, above, in terms of the full spectrum of Are they endorsed by the board? where do we need to be most corporate responsibility issues? Are they aligned with the open and accountable? How do How can we measure and emerging CR agenda? How are we currently perform? Where manage them better? Where is staff encouraged to apply these does CR reporting fit in? Where best practice emerging in the principles in their work? Where is best practice emerging? M&E sector and elsewhere? is best practice emerging? SUSTAINA_15577 21/5/04 5:37 pm Page 23

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4 5 6 7 Engage Audiences Communicate Reality Check If the System’s and other Internally Broke, Help Fix It Stakeholders

Transparency can be passive Companies and other The M&E industry prides itself As new issues emerge, public and it can be active. The best organisations are like chains — on offering us an escape from policy regulating the M&E companies seek to engage they are as strong as their reality, but reality is still out sector must evolve. Take their stakeholders, not just their weakest link. Given the effect there. The opportunity to offer a proactive stance on key customers, in active debate of slip-ups in the global successful content addressing issues, helping to develop about the challenges and media world, even on the issues spotlighted in Through self-regulatory initiatives desired responses. The Guardian M&E companies that have the Looking Glass will grow. where appropriate. Be newspaper, for example, surveys helped create it, internal transparent about such readers to assess the relevance communication, education, Success is not guaranteed, but initiatives and about wider of its coverage. training and incentives are relevant content is breaking out lobbying activities. 59 increasingly important. of the graveyard slots. Target Wherever possible, work with During coverage of environ- Corporate responsibility and the right audience: if there is a civil society organisations mental issues, Radio TV Hong sustainable development prime-time show that advocates to ensure that public policy Kong provides information on content will increasingly be the purchase of a gas-guzzling proposals win broad support. what people can do to drive needed in journalism and car then a program about car change 56 — and the evidence editorial courses. choice and climate change In the UK, for example, suggests that there is an should also get a prime-time slot. the Broadcasters’ Disability appetite among young people Gannett, the largest US Network is an initiative for such information. newspaper group, has an online Experiment: if DIY and archae- that addresses disability as it news department providing ology can be made entertaining, relates to the media industry. A study by ad agency McCann- guidance on where to find so can sustainable development. This is not simply a matter of Erikson found that while their information and expert advice Brazil’s TV Globo covers caring for the disabled, but initial awareness may be low, on environmental issues. environmental issues in soap also of achieving a more young people are interested in And BSkyB produces an internal operas, making the issues accurate representation of sustainable development, and tabloid newspaper (backed up relevant to people’s lives. people with disabilities in believe that the media should with intranet pages and e-mails) On climate change, Discovery the media. be more proactive in prompting to communicate its CR priorities Communications offers The people to act on major issues. 57 and performance to employees. Great Warming, and Twentieth The UK Media CSR Forum Century Fox The Day After has identified what it sees Tomorrow. 58 Other relevant box are the key corporate respon- office hits have included Erin sibility issues for the sector. Brokovich and The Insider. Individual businesses now But consider what can be done have to set the issues in to make the connections to context, identify which are action for viewers. material to their business and develop meaningful Be upbeat: When such coverage indicators against which is included, provide feedback on performance can be measured progress. As Futerra puts it: ‘Help in the future. us feel good about the things we already do. Pat us on the back. Tell us how things we have already done have made a difference.’

With which stakeholders do Do we know where the weakest Where is the dramatic interest Do our public policy people we currently engage effectively? links are likely to be? Do our in emerging CR and SD issues? understand the new agenda? Which should we invest more employees understand the How does current and planned Are they proactively engaging effort in? How might this be agenda — and the implications? programming measure up? policymakers in helpful ways? done? Where is best practice Do key courses cover both risks Where is best practice emerging? What great ideas are not quite emerging? and opportunities? Where is making the grade — and how best practice emerging? can we give them a following wind? Where is best practice emerging? SUSTAINA_15577 21/5/04 5:37 pm Page 24

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Source: Adbusters, Journal of the Mental Environment, March/April 2004. No.52

Centres of Excellence Fairness and Accuracy in Reporting Reporters sans Frontières US France Adbusters www.fair.org www.rsf.org Canada A national media watch group that Works to improve press freedom www.adbusters.org offers well-documented criticism of worldwide, by defending journalists A global network of artists, activists, media bias and censorship. and other media professionals who writers, pranksters, students, educators have been imprisoned or persecuted and entrepreneurs who want to advance The Media Channel for doing their work, fighting to reduce the new social activist movement of the US the use of censorship, and keeping the information age. www.mediachannel.org public opinion and media informed. A non-profit, public interest website Campaign for Press and dedicated to global media issues. Tocsin Broadcasting Freedom It encourages diverse perspectives and France UK aims to inspire debate, collaboration www.tocsin.net www.cpbf.org.uk and citizen engagement and action. French-speaking media watchdog Campaign for a media which is that aims to explain to the public more accountable to the people it is Media Smart and professionals the issues at stake meant to serve; the break-up of media UK in media coverage, traditional and concentration to promote greater media www.mediasmart.org.uk electronic. diversity rights of citizens to redress A media literacy programme, initially unfair coverage; and the rights of focused on advertising, the objective The Television Trust for the journalists to report freely. is to provide children with the tools Environment to help them understand and interpret UK European Institute for the Media advertising. Funded by a number of www.tve.org Europe corporate sponsors. An independent production and www.eim.org distribution non-profit company, Think-tank for research and strategy Media Tenor specialising in environment, concerning developments in European Germany development, health and human media and communications. www.mediatenor.com rights issues. All its films for Founded by journalists to provide an broadcast are made on a strictly objective resource for information on editorially-independent basis. media content trends. SUSTAINA_15577 21/5/04 5:37 pm Page 25

Endnotes 17 ‘Public Rates Nursing as Most Honest 35 Vivendi Universal’s 2002 report was and Ethical Profession’, Gallup Organization, benchmarked as its 2003 Sustainable 01 The Living Planet Report is WWF’s periodic 1 December 2003 Development Report was not available update on the state of the world’s www.gallup.com at the time of going to press. ecosystems such as forests and oceans — as 18 While the media companies may not be 36 Pearson is an international media company measured by the Living Planet Index — and trusted, individual newscasters and media with businesses in education (Pearson the human pressures on them through the celebrities may enjoy significant amounts Education), business information (Financial consumption of renewable natural resources of public trust. Times) and consumer publishing (Penguin). and issues such as climate change gas 19 Adbusters, Journal of the Mental 37 Christopher Parkes and Tim Burt, emissions – as measured by the Ecological Environment, March/April 2004, No.52. ‘Disney Embroiled in Row Over Moore Footprint. There is a cause and effect link 20 www.whitedot.org Film’, Financial Times, 6 May 2004. between the two measures. 21 Adam Sherwin, ‘Learning to Watch TV 38 Jeremy Rifkin, The Age of Access: www.panda.org/news_facts/publications/ As Important as Mathematics’, The Times, How the Shift from Ownership to Access general/livingplanet 21 January 2004. is Transforming Capitalism, Penguin 02 Christine Lamb and Mohammed Shehzad, 22 In the UK, for example, content and Books, 2000. ‘Taliban Use the Devil’s Weapons’, partiality is regulated by Ofcom which 39 Sumner Redstone with Peter Knoebler, Sunday Times, 2 May 2004. has responsibility for regulation across A Passion to Win, Simon and Schuster, 2001. 03 Westminster Media Forum Keynote television, radio, telecommunications 40 Ben H. Bagdikian, The Media Monopoly, Seminar on Corporate Social Responsibility: and wireless communication services. Beacon Press, 2000, pp. 35–36. CSR and the Media, 11 March 2004. www.ofcom.org.uk 41 David Edwards and Caspar Henderson, 04 ‘Society and Media’, The Ecologist, 23 Morley Fund Management ‘Media Sector ‘Can We Trust the Media on the Environ- December 2002/January 2003. Guidelines’, September 2003, ment?’, The Ecologist, June 2000, and 05 SustainAbility, Ketchum and UNEP, www.morleyfm.co.uk http://people-press.org/reports/ Good News & Bad: The Media, Corporate 24 The UK Social Investment Forum / Just display.php3?ReportID=39 Social Responsibility and Sustainable Pensions ‘Media: Potentially Material Social, 42 Barry Diller, ‘Is Big Media Bad?’ Development, SustainAbility, London, 2002. Ethical and Environmental Risks’, 2004, Newsweek, Issues 2004. 06 This involved a literature review and www.uksif.org 43 Andrew Graham, ‘The BBC is Under consultation with leading figures in 25 KPMG in the UK is part of a strong global Seige and With it Democracy Itself’, industry, government and civil society network of member firms providing audit, The Guardian, 1 September 2003. (See Acknowledgements). tax and advisory services. 44 John Carlin, ‘All Hail Berlusconi’, 07 Sustainable development refers to 26 This is understood to include: balancing The Observer, 18 January 2004. development which meets the needs of mission and market challenges; the media 45 The Humvee ‘Hummer’ is a military people today without compromising those being used as a vehicle for others’ vehicle with high fuel consumption that of future generations. messages; and access and availability. has now been adapted for civilian needs. 08 Claude-Jean Bertrand, The Role of 27 World Economic Forum, Media and 46 Michael Moore, Stupid White Men, Media Owners in Western Democracies, Entertainment Industry Monitor, WEF, 2003. Penguin Books, 2002. www.eim.org 28 Quoted in ‘What Would Walt Do?’, 47 Thomas Carlyle, The French Revolution, 09 The UNDESA 10-Year Framework of The Christian Science Monitor, 1837. Programmes for Sustainable Consumption December 4, 2003. 48 ‘Large Majorities of Americans Continue and Production agreed at Marrakech, 29 Although reporting is not a proxy for to Think That Big Companies, PACs, Morocco, 16–19 June 2003. performance, understanding how companies News Media and Lobbyists Have Too Much 10 Peter Deselaers, Tune in to AIDS Fight, define and address their responsibilities Power and Influence on Government’, UN Tells World Media, can be a vital tool to help hold them to The Harris Poll #16, 17 March 2003. www.unaids.org account. At the same time, the very process 49 Bruce Page, ‘How Rupert Took on the 11 Steve Hilton, ‘Responsibility in the of reporting can aid companies in clarifying World’, The Observer, 24 August 2003. Mainstream Media’, Ethical Corporation, their CR ambitions and in measuring and 50 Bruce Page, The Murdoch Archipelago, 30 December 2002. embedding CR within their organisations. Simon & Schuster, 2003. 12 See the Collevecchio Declaration for an 30 We confined our analysis of corporate 51 ‘Italy Media Boss Quits in Protest’, NGO vision for a sustainable financial reporting to Europe and the US mainly BBC News, 4 May 2004, sector. because of a lack of resources, but also www.bbc.co.uk www.banktrack.org because most of the major media and 52 John Carlin, ‘All Hail Berlusconi’, 13 SustainAbility, Ketchum, UNEP, entertainment conglomerates are based in The Observer, 18 January 2004. Good News & Bad: The Media, Corporate these two regions. Many examples are from 53 Vincent Porter and Martin Sims, Social Responsibility and Sustainable the UK, which has emerged as a hot-spot Environmental Change: Communicating Development, SustainAbility, London, 2002. for CR activity in this sector. Nevertheless, the Issues, International Institute of 14 European Association of Communication we acknowledge this as a flaw and Communications, 2003. Agencies (EACA), United Nations encourage others to help fill the gaps. 54 www.bbc.co.uk/info/policies/charter Environment Programme and SustainAbility, 31 SustainAbility’s benchmarking methodology, 55 Fairness and Accuracy in Reporting Opportunity Space, EACA, 2003. www.sustainability.com/trust-us www.fair.org 15 Though research does suggest that, at least 32 Sound Values, 2003, 56 www.rthk.org.hk/about/envirreport in the news media, journalists are unhappy www.emigroup.com 57 McCann-Erikson WorldGroup and with their profession (see for example 33 SustainAbility, Trust Us: The Global United Nations Environment Programme Sandra Haurant, ‘Vocational Workers are Reporters 2002 Survey of Corporate Can Sustainability Sell?, 2002. More Fulfilled’, The Guardian, 19 March Sustainability Reporting, 2002, the second 58 www.thedayaftertomorrow.com 2004). benchmark of sustainability reporting, 59 Simon Caulkin and Joanna Collins, 16 The role of these and other NGOs was looked in detail at the top 50 reports The Private Life of Public Affairs, widely seen as being central in defeating produced by companies around the world. Green Alliance, 2003. the attempt by media companies to get www.sustainability.com/trust-us Politics and Persuasion, SustainAbility the Federal Communications Commission 34 The BBC states in Environment Report and GPC, 2001. to allow a greater concentration of 2002/2003 that it intends to publish its media ownership in the US. first corporate social responsibility report in 2004. SUSTAINA_15577 21/5/04 5:37 pm Page 26

Publication Details Acknowledgements Credits

Through the Looking Glass: SustainAbility and WWF-UK thank the Research and Writing Corporate Responsibility in the following for their insight and input: Jules Peck, WWF-UK Media and Entertainment Sector Nick Bent, UK Department for Culture, Seb Beloe, SustainAbility First Edition 2004 Media and Sport; Shelley Billik, Warner Francesca Müller, SustainAbility ISBN 1-903168-10-4 Bros; Meg Brown, Just Pensions; Michelle Frances Scott, SustainAbility Crozier, Warner Bros; Kate Dunning, © SustainAbility Ltd and WWF-UK 2004. EMI Group; Robin Esser, Daily Mail; Information Design All rights reserved. The views of the Peter Goldmark, Environmental Defense; Rupert Bassett authors do not necessarily represent those Michael Grade; Michael Hastings, BBC; +44 (0)7958 629290 of WWF-UK. No part of this publication may Richard Hooper, Ofcom; Oliver Karius, SAM be reproduced, stored in a retrieval system Sustainable Asset Management; My-Linh Photography or transmitted in any form by any means, Ngo, Henderson Global Investors Ltd; Lord Still Pictures electronic, electrostatic, magnetic tape, Puttnam; Steve Rendall, FAIR; Martin Sims, +44 (0)20 8858 8307 photocopying, recording or otherwise, International Institute of Communications / Corbis without permission in writing from the St Mary’s College, University of Surrey; +44 (0)20 7644 7400 copyright holders. Any errors of fact or Dr Joe Smith, Open University/Cambridge judgement are ours. If you detect any, Media and Environment Programme; Print please let us know. Ben Stimson, British Sky Broadcasting Ltd; Calverts Co-operative Pascale Thumerelle, Vivendi Universal; +44 (0)20 7739 1474 Tim Toulmin, Press Complaints Commission; Solitaire Townsend, Futerra Sustainability Communications; Charles Wilson, former chairman of Channel 4.

SustainAbility also thanks Mark Ridsdill for all his work at the early stages of the report and John Elkington for his work on the final draft.

WWF-UK also thanks David Cowdrey, Peter Denton, Oliver Greenfield, Dax Lovegrove, Caroline Moulder and Sally Nicholson for their comments.

WWF SustainAbility www.wwf.org www.sustainability.com

WWF is the world’s largest and most Founded in 1987, SustainAbility is experienced independent conservation the longest established international organisation. Its mission is to stop the consultancy specialising in business degradation of the planet's natural strategy, corporate responsibility and environment, and to build a future in sustainable development. From the which humans live in harmony with outset the company has been a hybrid: nature, by conserving the world's biological part strategic management consultancy, diversity; ensuring that the use of renew- part world-class think-tank, part able natural resources is sustainable; energetic public interest group. and promoting the reduction of pollution and wasteful consumption.

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