A FAKE QUICK COUNT BY TV ONE

BUSINESS ETHICSA FAKE QUICK COUNT BY TV ONEGROUP ASSIGNMENT

AJI SAPTAJI HASNAH NIKEN WULANDARI XAVIER HENRY VITTORICO ANDREAS(2015)

CHAPTER 1COMPANY OVERVIEW

1.1. Company ProfileTV One (formerly Lativi) is an Indonesian private television station. The television station was established on August 9, 2002 by businessman Abdul Latif. At that time, the concept of the preparation of the show is the highlight many problems that heresy, eroticism, crime news and some other light entertainment. Since 2006, the majority of its shares are also owned by the Bakrie Group which also has ANTV. On February 14, 2008, Lativi officially renamed the TV One, with a composition of 70 percent of the news; the rest is a combination of sports and entertainment programs. Abdul Latif is no longer in stock ownership TV One. TV One shareholding consists of PT Visi Media Asia at 49%, 31% PT Redal Universe, Good Response Ltd 10%, and 10% Promise Result Ltd. Director of TV One today is Ardiansyah Bakrie which is the youngest son from Aburizal Bakrie who own Bakrie Group and also the chairman of Golongan Karya Party (Golkar). Thursday, February 14, 2008, at 19:00 hours, its became a historic moment for TV One because for the first time they on airs. It was conducted by the President of the Republic of Indonesia, Susilo Bambang Yudhoyono, TV One became the first television station in Indonesia who get a chance to be unveiled from the Presidential Palace of the Republic of Indonesia. TV One progressively inspires Indonesian people aged 15 years and over in order to think ahead and make improvements for themselves and their communities through its News and Sports. Classify programs in the category of News One, Sport One, Info One, and the One Reality, TV One prove its seriousness in implementing these strategies by presenting innovative formats in terms of reporting and presentation programs. As a newcomer in the world News, TV One has prepared a new form of news that has never existed before. As Apa Kabar Indonesia, which is a program of information in the form of a light discussion with the hottest topics with the speakers and the public, broadcast live on the morning of the studio outside TV One. TV One news program packed with the title: Latest News, Morning News, Market News, News Afternoon, Evening News and News Night. Different packaging is also served by the evening news, showing the form of reports that deliver the news directly from the Central Bureau of Jakarta and Regional Bureau (Medan, Surabaya, Makassar) with impartial news weights among all Bureau. This program was awarded MURI (Indonesian Record Museum) as "Impressions News Direct Presented by 5 Presenters of 4 Different Cities in One Screen". While the evening news media in cooperation with the entire archipelago to produce a complete editorial, credible and dynamic. Impressions Sport TV One will include games broadcast live seed, ranging from the National Football League (Copa Indonesia), the European Football (Premier League and the Netherlands), the National Basketball League (IBL) and the National Volleyball (Pro League). TV One also serve Selected Entertainment programs that can provide inspiration for the audience to come forward and always think positive, without fooling element. At the beginning of this year, TV One has 26 base stations and at the end of the year will be 37 stations transmitting in various regions with the number of potential audience of 162 million viewers. Through these developments, the expected spread of the spirit of the TV One to promote the progress of a nation can be realized well.

1.2. Company Milestone Established : July 30, 2002 (as Lativi)

February, 2008 (as TV One)

Owner : PT Visi Media Asia (VIVA) Slogan : Saluran Penuh Nilai dan Makna (The Channel that is Full of Value and Meaning) (2002-2004) Pasti (Certainly) (2004-2006) Berani Beda (Dare to be Different) (2006-2008) Terdepan Mengabarkan (Leading to Report) (February 14, 2010 - March 2, 2012) Memang Beda (Truly Different) (February 14, 2008 2010, March 2, 2012-present) Live Report For Terrorist Arrest at Temanggung, 2009 Awarded by MURI (Museum Rekor Indonesia) : Impressions News Direct Presented by 5 Presenters of 4 Different Cities in One Screen, 2008 News Program Live Report From 6 Countries, 2011 Live Report On 33 Programs For 41 Hours Non Stop, 2011 Tina Talisa, as Presenter For Live Report On 33 Programs For 41 Hours Non Stop, 2011 Official TV Partner for FIFA World Cup 2014 Brasil, 2014 No 1 News TV in 2014 (based on AGB Nielsen Media Research), 2014

1.3. Company PositionTV One is the 8th Free-to-air (FTA) national television in Indonesia. Currently there are 13 FTA national televisions in Indonesia which are TVRI, RCTI, MNCTV, SCTV, ANTV, Indosiar, Metro TV, Trans7, Trans TV, TV One, Global TV, iNews TV, dan RTV.Picture 1. Number of FTA national television in IndonesiaFrom 13 FTA national televisions, the market or audience share during primetime is shown below.Picture 2. Audience Share of FTA national television in Indonesia

From audience share above, it can see that number one FTA national television in Indonesia is RCTI with TV One in the 9th position. But it has to be noticed that from top 9 national television positions, only TV One that its main focus is news (other news TV is Metro TV and iNews TV which cannot make it into top 9 positions). While RCTI still focus the audience share on soap opera, foreign programs, or local programs (reality show, music, and others). The same programs also applied for others TV except TV One. It means that TV One is the number one news TV in Indonesia, beat Metro TV and iNews TV.This condition also confirmed by AGB Nielsen Media Research in 2014 where 2014 is year of politics due to legislative election and presidential election. During legislative election on 9 April 2014, TV One reach the highest share (11,8%) among others TV in Indonesia with audience target men 25+ on ABC1 economic segment, during slot 13.00 18.00. This achievement repeated on presidential eclection on 9 July 2014 with higher percentage (14,1%) with audience target 15+ ABC1. The peak is when presidential election final decision court in Mahkamah Konstitusi (MK) on 21 August 2014, TV One watched by 16,6% audience from 15+ ABC1 segment.Actually its not only during presidential election when TV One gets the highest audience share because almost every important event / incident TV One always be number one. During 2014, TV One also consistent to be superior compares to others news television in Indonesia. From AGB Nielsen Media Research during January until August 2014, the data shown that audience shares of TV One on 15+ ABC1 segment always higher compare to other news television. The data tells that people of Indonesia choose more TV One to see the news rather than news on other TV. This data makes TV One more confidence to claim that they are really number one news television in Indonesia.

CHAPTER 2CASE STUDY

2. 2.1. Indonesias President ElectionPresidential election 2014 was held on 9 July 2014 and matched between former general Prabowo Subianto against the governor of Jakarta, Joko Widodo. This is the 3rd Indonesian direct presidential election after in the 1st and 2nd Susilo Bambang Yudhoyono won the election. Initially, Indonesia is working towards e-voting in hope of implementing the new system in the 2014 general elections. The basis of the e-voting system is electronic identity cards (e-KTP) which were expected to be ready nationwide by 2012 and has been tried in six districts/cities. However, the system was not ready for the election. Therefore, voters still voted on paper by punching a hole in one of the two candidates' photograph, number, or name. The ballots were then collected and counted at the village level, then city/regency level, province level, and finally the national level.Candidates for president are nominated as individuals (along with a vice-presidential running partner); however, support from the main political parties is likely to play a key role in influencing the result. Partly for this reason, the highly changeable map of political parties in Indonesia contributes to the uncertainty of political trends in the run-up to the presidential election. In recent years, the number of political parties contesting major elections (for both national and regional parliaments, and the presidential elections) has varied considerably.In 2004, 24 parties contested the national elections and 16 secured enough seats to be represented in the national parliament.In 2009, 38 parties contested the national elections and 9 secured enough seats to be represented in the national parliament.In 2014, 12 parties contested the national legislative elections and 10 secured enough seats to be represented in the national parliament.Below is the summary of registered parties support in the 2014 presidential election.Known asPartySupportingDPRseatsDPR seats%

GerindraPartaiGerakan Indonesia RayaNominee:PrabowoSubiantoRunning mate:HattaRajasaMajority coalition:Gerindra/Golkar/PPP/PKS/PAN/Demokrat353/56063.04%

GolkarPartaiGolonganKarya

PPPPartaiPersatuan Pembangunan

PKSPartaiKeadilan Sejahtera

PANPartaiAmanatNasional

PDPartaiDemokrat

PDIPPartaiDemokrasi Indonesia PerjuanganNominee:JokoWidodoRunning mate:JusufKallaMinority coalition:PDIP/Hanura/NasDem/PKB207/56036.96%

HanuraPartaiHatiNurani Rakyat

NasDemPartaiNasionalDemokrat

PKBPartaiKebangkitanBangsa

Table 1. Indonesia Parties Supports of President Candidate

2.2. President Elections Quick CountQuick count currently is common process during election held in Indonesia. It is conduct whenever theres a election for governor, mayor, legislative, or presidential. Quick count is the process of collecting information gathered by hundreds, or thousands, of volunteers. All information, or data, comes from the direct observation of the election process. Observers watch the electoral authorities as they administer the voting process and count the ballots. They record information, including the actual vote count, on standardized forms and communicate their findings to a central collection point. The result of quick count can publish several hours after the voting process start to count. The result is very fast comparing to official result which publishes several weeks after the election is done. Quick count can very reliable because it relies on direct observation of the vote and the count. The objectives of quick count during the election mostly are to deterring fraud, detecting fraud, and instilling confidence in the electoral process and official result. Some of independent pollsters like Kompas, Indikator Politik Indonesia, LSI (Lingkaran Survey Indonesia), Cyrus, Radio Republik Indonesia, LSN (Lembaga Survey Nasional, and SMRC are usually conduct quick count process during the election. The result of quick count by independent institute is usually not much different from official result like happen in legislative election 2014.Picture 3. Election Result Comparison between KPU (Official) and Quick Cunt PollstersUsually, people in Indonesia and participants of elections are acknowledged and trust the quick count result because it is a scientific method. However, the official result is still based on manual voting counting.

2.3. Quick Count by TV OneRight after the election on 9 July 2014, Joko Widodo announced his victory based on quick counts of votes from several zones; most of these independent pollsters indicated a Joko Widodo victory (5253% of votes to Prabowo's 4748%). Most of quick count result of independent pollsters like Kompas, RRI, SMRC, and LSI shows that Joko Widodo will be the next president.The problem of presidential election start when TV One announced that the result of their quick count all showing that Prabowo is the next president. TV One using 4 independent pollsters and all of it winning Prabowo as the president. The 4 independent pollsters are Indonesia Research Center (IRC), Jaringan Suara Indonesia (JSI), Lembaga Survey Nasional (LSN), and Puskaptis. The controversy appears. For the first time in the Indonesia elections history, people in Indonesia confuse about the result of the quick count.

SourceCandidateError

Prabowo Subianto - Hatta RajasaJoko Widodo Jusuf Kalla

CSIS-Cyrus Network 48.1%51.9%1.25%

Indikator Politik Indonesia (Metro TV news)47.05%52.95%0.20%

Kompas (Litbang)47.66%52.34%0.81%

Lingkaran Survei Indonesia46.43%53.57%0.42%

Pol Tracking46.63%53.37%0.22%

Populi Center 49.05%50.95%2.20%

Radio Republik Indonesia47.32%52.68%0.47%

Saiful Mujani Research Center(SMRC)47.09%52.91%0.24%

Indonesia Research Centre(IRC)51.11%48.89%4.26%

Jaringan Suara Indonesia(JSI)50.13%49.87%3.28%

Lembaga Survei Nasional50.56%49.44%3.71%

Puskaptis52.05%47.95%5.20%

Table 2. The Result of Presidential Election Quick Count

After the controversy, it is known that TV One only uses the pollsters which backed up Prabowo to become the next president. Indonesia Research Center (IRC)Its owned by Harry Tanoe (MNC Group) which supports Prabowo as the next president. Previously IRC already published questionable survey because they placed Hanura party in the top 3 toward legislative election. It is questionable because Harry Tanoe is the candidate for vice president from Hanura. Up to now, IRC doesnt have website which can accessed by public. Jaringan Suara Indonesia (JSI)The credibility of this institute is questionable. In their website, theres no information about what and who is JSI. Theres no office telephone number also, only hand phone number. This institute always placed Prabowo as the most popular president candidate on their survey result. But their survey result only reported the popularity of the candidate, minus electability. Lembaga Survey Indonesia (LSI)The institute is owned by Mahfud MD which also supports Prabowo as the next president. The most questionable result from LSN is the result of their quick count once exceeds 100%, which count Prabowo is 50,60% and Jokowi is 49,75% as the total result is 100,35%. The result appearing on TV One although revised later. PuskaptisThe credibility of this institute is also questionable. They use Wordpress (free blog) as their website and no update since April 2009. Puskaptis several times announced the wrong result of quick count like in Sumatera Selatan governors election (2008), West Java governors election (2008), and legislative election on 2009. The most controversy is Sumatera Selatan governors election on 2013 when Puskaptis suspected change their quick count result as requested by other party. The controversy in Sumatera Selatan caused mass violence.

From the background of the pollsters, TV station should know previously and which very questionable, TV One cannot avoid public accusation that they published fake quick count result.

CHAPTER 3CASE ANALYSIS

3. 3.1. Ethical IssuesThere are several ethical theories that will discuss related to this case and each point discusses in below. Stakeholders Vs. Shareholders Corporate Social Responsibility Corporate Governance The Role of Government Making it Stick (Sustainable Development)

3.1.1 Stakeholders vs. Shareholders

Picture 4. Stakeholders vs. ShareholdersFrom the picture in above, we can see that as a company is not only exposing internally but also will exposing externally and they will related not only with the employee but they will related to several aspects outside of their own company as described in above.In TV One case, we can see that TV One did unethical to choose un-credible pollsters to announce the result of quick count. TV One should know the background of pollsters and they decide to choose the pollster which only support to one candidate of president (Prabowo). This decision automatically makes TV One as un-neutral media and affected the stakeholders like:1. Customers (Audience), affected the customers have trust issues about the news from TV One.2. Political Group, cause fraud issues during the election because fake quick count made in specific order.3. Government, have to calm down the restless society and conduct investigation about fake quick count.4. Employee, feeling uncomfortable to work at TV One.5. Activist Group, suspect theres fraud issues during election.As a media company, TV One should think short term versus long term to see does company decision have a short term consequence or longer term consequence, especially in news announcement. Saul Gellerman has identified four commonly held rationalizations that can lead to misconduct (Ghillyer 2012, page 30).A belief that the activity is within reasonable ethical and legal limits that is, that its not really illegal or immoralA belief that the activity is in the individuals or the corporations best interest- that the individual would somehow be expected to undertake the activity A belief that the activity is safe because it will never be found out or publicized the classic crime and punishment issue of discoveryA belief that because the activity helps the company, the company will condone it and even protect the person who engages itThese theories can be related to the ethical issue in TV One case.

3.1.2 Corporate Social ResponsibilityCorporate social responsibility (CSR) may be defined as the actions of an organization that are targeted toward achieving a social benefit over and above maximizing profits for its shareholders and meeting all its legal obligations (Ghillyer 2012, page 66). CSR matters because it influences all aspect of business and businesses matter because they create much of the wealth and well being in society. As such, CSR is increasingly crucial to both business and societal success.There are some justifications for company to conduct CSR.1. MoralCompanies have a duty to be good citizens and to do the right thing. It means companies should achieve commercial success in ways that honors ethical values and respect people, communities and the natural environment.2. License To OperateCompanies should operate responsibly in such a way those social issues that matter to its stakeholders is taken care of to their satisfaction, to secure license to operate, derives from the fact that every company is need permission from government, communities, and other stakeholders to do business.3. ReputationCompanies need to do CSR initiatives because they will improve company image, strengthen its brands, enliven morale, and even raise the value of its stocks.4. SustainabilityCompanies should operate in ways that secure long term economic performance by avoiding short term behavior that is socially detrimental or environmentally wasteful and meeting the needs of the present without compromising the ability of future generations to meet their own needs.

For TV One case, we can see that TV One seems didnt concerned about moral, license to operate, reputation and sustainability. Their publishing for fake quick count not only makes people questioning about their moral, but also they risk their reputation as number one TV news in Indonesia. The trust issue from the public can endanger their license to operate and their sustainability which risk the career of thousand employees. Those CSR theories can also be related to the ethical issue in TV One case.3.1.3 Corporate GovernanceCorporate Governance is a system which guides how a corporation is controlled and governed to increase the business wealth and accountability with the main objective to increase shareholders value in the long run without sacrificing the interests of other stakeholders. Good Corporate Governance (GCG) basic principles in Indonesia are:1. TransparencyCompany is openness in managing the system and procedures to achieve objectives.2. AccountabilityEffective control based on balance of power (between authority and power).3. ResponsibilityRoles and authority of each function based on professionalism and performance, and the principle of business ethics.4. IndependencyNo intervention from other parties.5. FairnessFair treatment based on the stakeholders rights.Its clear that in TV One case they didnt implement GCG since they break all the basic principles of GCG. They become dependent media to one candidate of president (Prabowo) and they dont fair in the media publishing for election result. TV One dont have the responsibility as their role as a news media and doesnt care about professionalism.3.1.4 The Role of GovernmentIt is clearly seen that this case related to the role of government. When TV One announced the fake quick count result of presidential election, they should have known that there are many more credible pollsters out there which can give different result with their pollsters. It is important to TV One to follow the government regulation and refer to official association for survey which is Persepi (Perhimpunan Survei Opini Publik Indonesia). In this case, TV One didnt consult with Persepi for the pollsters they used. Although Puskaptis and JSI listed as Persepi member, TV One can also review the background of the pollsters and the result from their quick count result in the previous election before they decide which pollster they want to use. TV One clearly didnt have a good compliance program such as:1. Management oversight2. Corporate policies3. Communication of standards and procedures4. Compliance with standards and procedures5. Consistent discipline6. Response and corrective action(Ghillyer 2012).As mentioned and discussed, lack of this compliance program can make company a negative publicity and can result in significant trust issues and can make stock price declined, which is happened in TV One case.

3.2. Comparison Case Study3.2.1 Kenya, 2008After election in the end of year 2007, more than 1000 people had been killed and around 500.000 others driven from their homes or fled in fear. International report claimed that local language radio stations in Kenya were responsible for fanning ethnic hatred and fueling violence. Some local language radio stations have incited fear and hatred particularly at the height of the violence. Local language radio stations are routinely partisan and flout codes of ethics.

3.2.2 India, 2012During elections in May 2011 and March 2012 the Election Commission of India (ECI) took extraordinary step of forming district level monitoring bodies to closely track media coverage of the campaign process, to detect cases of paid news, which was viewed as electoral malpractice. In elections to five state assemblies in 2012, a total of 626 suspected cases of paid news were detected. A large number of the candidates have conceded that they did indeed buy space and time in the media to pitch favorable stories about themselves. They have agreed indeed, to the inclusion of the funds spent within their campaign accounts.

From comparison study case, we can see that media has the power to influence people. The worst situation can happen is mass violence which can cause murder. Media also can used to gain the power for politician in the wrong way. This can cause corruption and trust issue in the public opinion.3.3. Official Result of ElectionOn 22 July 2014, KPU (Komisi Pemilihan Umum) announced official result of presidential election and declared that Joko Widodo is the winner of the election with 53,15% while Prabowo only gain vote 46,85%. The official result from KPU is not much different with the result of credible pollster which didnt used by TV One. Meanwhile, all the result from TV One pollsters is wrong. Picture 5. Comparison of Official Result and Quick Count for Presidential ElectionThe result from KPU convinced people of Indonesia that TV One already publish fake quick count and the pollsters they used are un-credible institute. However, due to the controversy already happen, this fake quick count makes the Prabowo supporters claimed that they have cheated by KPU or Joko Widodo winning team because they still believe on the quick count which published by TV One.From the result, TV One has made a huge mistake and conducts unethical behavior by choosing un-credible pollsters and publishes it. They risk the company reputation as number one news television, their sustainability, and career of thousand employees only because they support one of president candidate (Prabowo). Following the result of KPU, Persepi also fired JSI and Puskaptis from their membership due to fake quick count and unethical behavior.

3.4. The Impact of Ethical IssueOne day after TV One publishes the result of quick count, the stock VIVA in the Jakarta Stock Exchange was decreased. At 11:40, the stock VIVA landslides 4.85 percent at Rp 255 per share. This is evident from the movement of shares of PT Visi Media Asia (VIVA) Bakrie Group that houses the TV One due to their publishing of fake quick count result.Picture 6. Indonesias Stock Exchange One Day after Presidential Election

The VIVA stock was having their lowest value in the stock exchange in 21 July 2014, one day before KPU announced the official result. This condition due to TV One still publishes fake quick count everyday although their news made controversy in Indonesia. However, their stock going back to normal after KPU announced the official result of election (on 22 July 2014) and declared that Joko Widodo is the winner of the election.

Picture 7. The Movement of VIVA Stock during Presidential Election

Not only their stock, the rating of TV One during July was decrease minus 4,8 or become 4,48. Their rating was below Metro TV who having increasing rating into 4,55 or increase 2,02 (based on AGB Nielsen Media Research). The movement of rating because people in Indonesia prefer to watch Metro TV during election period rather than TV One and its mostly because the fake quick count by TV One.

CHAPTER 4CONCLUSION AND RECOMMENDATION

4.1 Conclusion Right after the election on 9 July 2014, Joko Widodo announced his victory based on quick counts

4.2 RecommendationRight after the election on 9 July 2014, Joko Widodo announced his victory based on quick counts

Referenceshttp://v2.bakrieglobal.com/news/read/4132/tvOne-Memang-Nomor-Satu-Survei-Pemeringkatan-AC-Nielsen-Membuktikanhttp://redwing-asia.com/market-data-posts/indonesian-media-market-growth-opportunities-abound/NDI, the quick count and election observationhttp://www.indonesia-2014.com/read/2014/07/11/rekam-jejak-empat-lembaga-unggulkan-prabowo#.VTvjC8lKYYAhttp://www.bbc.co.uk/indonesia/berita_indonesia/2014/07/140716_persepipemiluGrysller, 2012http://www.bbc.co.uk/indonesia/berita_indonesia/2014/07/140716_persepipemiluTYRANNY OVER THE MIND: PAID NEWS AS ELECTORAL CRIME Dr. Madabhushi Sridhar, 2013http://quote.kontan.co.id/?q=VIVA#javascript:;http://www.merdeka.com/peristiwa/metrotv-sebut-quick-count-bikin-ratingnya-lewati-tvone.html