Ethics

"Pick up The Wall Street Journal today, and the business pages are full of stories about the men and women who built the stock market bubble," writes business journalist Philip Longman. "But there's another sector of the economy, deeply implicated in the collapse, whose conflicts of interest, ethical lapses and naive enthusiasms have so far received little press attention: business journalism itself." Longman examines the conflicts of interest and delusions that led journalists to hype the stock market bubble.

If you're wondering how corporate America was able to bamboozle so many people into throwing their life savings away on worthless investments, part of the answer lies in the Private Securities Litigation Reform Act of 1995 (PSLRA), which was lobbied into law by the National Investor Relations Institute.

Life is tough these days for corporate executives, sighs US News & World Report. "After being lionized by investors and the media and showered with money and perks for the past decade, corporate officers and directors are now feeling the heat," writes Matthew Benjamin. "To many executives, the job may not be worth the hassle," and many are worried about the legal liabilities that now come with the job.

"After learning that some celebrities who talked on its news programs about their health problems were being paid by drug companies, CNN has issued a new policy and will tell viewers about the stars' financial ties to corporations," New York Times' Melody Petersen writes. In an August 11 Times article, Petersen revealed the widespread testimonial practice. Petersen reports stars like Lauren Bacall and Kathleen Turner "had been paid to help promote drugs or other medical products" on network morning "news" programs.