1. Economic Pressures ANd Social responsibility
Whitney Arthofer
Elliott Davidson
Stephen Liske

2. Economic Pressures versus Moral Obligations
Some suggest that when profit motives compete against altruistic motives, commercial interests always prevail
Profit is not immoral
The problem occurs when commercial interests are allowed to dominate social obligations

3. Economic Pressures versus Moral Obligations
Balancing economic pressures against duties to others
Can’t always give way to noble causes like moral idealists propose
Economic Pressures come from
Financial Supporters
The competition
The public
These are interdependent
Economic concerns in one area can impact other areas

4. Economic Pressures versus Moral Obligations
Media are in a unique position in the American economic system
Advertising
Constitutional Protection
Viewed as servants of the public interest
This role goes far beyond commercial interests
However, media are big business and economic pressures influence their decision making

5. Media’s financial interests and public’s interests are reflected in three areas
1. Concentration of media ownership
2. Alliance of mass media and marketing
3. Advertising

6. Concentration of Media Ownership
Many media outlets are owned by a few big corporations
Newspapers
In 1930, 84% were independent
In 1998, 20% (of 1,500) were independent
Gannett Company, Newhouse Newspapers, Tribune Company, Knight- Ridder, and Times-Mirror own most daily papers

7. Concentration Of Media Ownership
Ideas vs. Profit & Loss statements
In favor of media concentration
Pooling of economic resources equals a better product
Chain Ownerships has allowed many newspapers to stay afloat
Against Media Concentration
Obsession of cutting cost to maximize profits is hurting readers and viewers
Stockholders trump readers
Major TV networks are the properties of non-journalistic corporate enterprises
Disney and ABC
CBS and Westinghouse Electric

8. Alliance Mass Media & Marketing
Mass media has adopted marketing/economic strategies
Tension between business values and journalism values
Mark Willes review
To compete in todays economic arena a business must master marketing
O.J. Simpson case/Carnival cruise stranded
-The marketing concept holds that all departments, including news, must contribute to the financial well-being of the organization
-Recent survey of 140 editors and news directors showed that more than 75 percent of the respondents believed that entertaining readers and viewers comes before educating them.
-“Throughout the paper editors are sitting down with delegates from circulation, marketing, research, and advertising to develop new sections, to establish targets and goals for revenue and readership.”

9. Alliance Mass Media & Marketing
Con side – marketing concept has “democratize” journalism
Stations use consultants’ advice or audience survey data to determine content
Audience receives what they want over what they need
Seinfeld, The Apprentice, and Friends considered cultural phenomenon's
Money must be generated
Marketers fear that large numbers of low-income readers will undermine
-”the fact that business decisions drive news decisions is a “virtue” because it gives the public a significant voice in shaping the news agenda.
-TV Shows are cultural phenomenons and therefore newsworthy.
-Money has to be generated in order for these stations to stay in business and for actual news to be publicized in the future.
-marketing directors at many newspapers fear that large numbers of low-income readers would undermine the appeal of the demographics on which high advertising rates are based.

10. Alliance Mass Media & Marketing
Utilitarian
Pro’s vs Con’s
Care Theory
Take into account people who are vulnerable and dependent on his/her care

11. Challenges of Cyberspace
Commercialization
Search engines allow owners to pay for prominent placement
Editorial judgment v.s advertising online
Ads (banners to pop-ups now search engines)
Novices can’t tell the difference
Solution – listing labeled as “paid”

12. The Role Of Advertising
Gives mass media financial independence from government and political interests
Creates media dependence on commercial sector
Economic pressures from advertising
Quantity of ads determines amount of space left for news, entertainment
There is ripple effects when advertisers cut budgets
More money that is spent on cable ads means less money is spent on network ads
News divisions are affected and the quality of content suffers because they don’t have resources

13. The Role of Advertising
Direct pressure on media managers
Advertisers don’t want unflattering stories
They pull ads if they become targets of negative publicity
Pressure may be subtle
Women’s magazines rely on cigarette ads
Study revealed less stories about hazards of smoking in these magazines
Smaller organizations may succumb to the pressure
Larger institutions can withstand advertiser onslaught because they have more money

14. Challenges of CyberSpace
Utilitarian
Pro’s vs Con’s
Care Theory
- Take into account people who are vulnerable and dependent on his/her care

15. Case Study
GE is by no means a hands off owner of NBC. Lee and Solomon in their book Unreliable Sources have detailed how GE insisted on the removal of references to itself in an NBC program on substandard products. Todd Putnam, editor of National Boycott News, tells of how he was approached by the NBC's Today Show to do an interview about consumer boycotts. Their biggest boycott at the time was against General Electric and its nuclear defense contracts. The Today show was reluctant and unsure of whether or not to have him mention boycotts against any large corporation preferring him to rather talk about "a boycott that was 'small,' 'local' and 'sexy'.“