Overcoming ethical challenges

Ethical considerations for business reporters are not much different from those for reporters covering politics, sports or any other topic, but there are some special considerations and perhaps more opportunities for conflicts of interest to arise.

Product giveaways are a frequent enticement from companies looking for favorable coverage. While journalists may certainly accept the loan of a product to test or review it, the product should be returned to the company. Accepting gifts of computers, mobile devices or any such item can compromise the journalist’s objectivity and create a conflict of interest.

In many countries, journalists have a long tradition of accepting “envelopes” containing money, sometimes ostensibly to cover expenses. Most international news organizations forbid their employees from taking such gifts. But the tradition persists in media companies where reporters are paid little and regard the favors as a supplement to their salary.

Journalists who resist the temptation to take gifts or favors are in a much better position to win the trust of their audience and establish credibility.

Most major news organizations do not allow business reporters or their immediate families to own shares in the companies they cover, or any companies they might cover in the future. They must not privately divulge information they pick up in the course of covering companies to others who have some interest in the companies, whether investors, analysts or anyone else.

Share prices can move up or down solely on news or rumors, providing another reason journalists need to be especially careful about verifying all information thoroughly. Consumer views, investor actions and the reputation of managers and board members can all be affected by what appears in the media. That doesn’t mean reporters should be overly cautious, only that they need to apply the highest professional standards to their reporting and writing.

Such considerations also point to the critical importance of writing fair, balanced stories that adequately cover all sides.