A group opposed to what it calls “corporate tax cheats” and “unfair public service cuts” issued a fake press release under General Electric’s name, claiming GE the company would donate $3.2 billion to add jobs and aid the U.S. economy.
It then issued its own press release, praising GE’s actions.
The AP acknowledged its mistake, killing the story in less than an hour and later saying reporters didn’t do enough to verify the release before writing about it. (Notice that the AP story doesn’t mention US Uncut, probably figuring that the group didn’t deserve any more attention.)
It’s not the first time fake press releases have dogged media; Reuters was among that fell prey to a fake in October 2009. Poynter’s Romenesko points out other examples.
The Wall Street Journal’s Marketwatch noted that GE’s stock price fell after the bogus press release, saying “there probably are several lawyers already looking into it, either on behalf of the company or its shareholders,” and that federal regulators look dimly upon such shenanigans involving publicly traded companies.
The impetus comes from a New York Times story claiming that GE paid no federal taxes in 2009. The company denies the claim; the truth lies somewhere within a complicated tax code, GE’s efforts to keep taxes as low as possible, and the company’s lobbyists who work to have tax code written in their favor.
What are the ethical implications? Consider:
♦ Is it ethical do lie in order to do what you think is a greater good? (If you buy this teleological argument, what do you think John Stuart Mill might say?)
♦ If it’s OK to lie, should you use a third-party (such as a news organization) to advance your lie to a bigger audience?
♦ If you were the company’s PR head, how might you respond (if at all) to the hoax? Is it possible to make the public feel sympathetic for General Electric?
♦ At what level of moral development is US Cut operating? They might argue that they are operating at a high level, claiming it’s OK to break societal norms to draw attention to a bigger. Do you agree?
♦ Is this an ethical issue for the Associated Press and other media who fell for the gag? Why or why not?