Culture at Fox News: Governance Failure or Something Worse?

Editor’s note: This article originally appeared on SCCE’s Compliance & Ethics Professional November 2016 edition.

Much has been written about the allegations of significant and pervasive harassment that have been leveled at Roger Ailes and the culture he created at Fox News. There are a variety of culture lessons that can be learned from exploring the information revealed by the internal investigation and the statements by various Fox employees as that information comes to light.

In addition, there is a significant governance conversation to be had, and the basis of one piece of it comes from an article in the Wall Street Journal of the settlement paid out to long-time Fox employee Laurie Luhn. That piece includes this line: “According to 21st Century Fox, the parent company of Fox News at that time—News Corp—was unaware of that settlement.”

Unaware of that settlement. Let that sink in for a moment. Remember that this was a settlement paid to a long-term employee to resolve allegations of long-term harassment by the CEO. She was paid a little more than $3 million.

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