📰Business and Economics Reporting Unit 10 – Investigative Techniques for Business Reporting

Key Concepts and Principles

• Investigative business reporting uncovers hidden information, exposes wrongdoing, and holds companies accountable
• Requires a deep understanding of business, finance, and economics to identify newsworthy stories
• Involves extensive research, data analysis, and interviews to gather evidence and build a compelling narrative
• Aims to inform the public, protect consumers, and promote transparency in the business world
• Relies on strong journalistic ethics, including accuracy, fairness, and independence from outside influences
• Often focuses on issues such as corporate fraud, financial misconduct, labor abuses, and environmental violations
• Can lead to significant impact, including regulatory changes, legal action, and shifts in public opinion

Research Methods and Data Sources

• Utilize public records (SEC filings, court documents, government databases) to uncover relevant information
• Analyze financial statements, including balance sheets, income statements, and cash flow statements, to identify irregularities or trends
• Conduct extensive online research using specialized databases (LexisNexis, Bloomberg, EDGAR) and search techniques
• Cultivate a network of sources, including whistleblowers, industry experts, and former employees, to obtain insider information
• Utilize data journalism techniques, such as web scraping and data visualization, to identify patterns and trends
• Collaborate with other journalists, researchers, and experts to share information and resources
• Verify the accuracy and reliability of all sources and data before publishing

Interviewing Techniques

• Develop a clear understanding of the story's focus and the information needed before conducting interviews
• Identify key sources, including company executives, employees, customers, and industry experts
• Prepare thoroughly by researching the subject matter and the interviewee's background
• Build rapport with sources to establish trust and encourage open communication
• Ask open-ended questions that encourage detailed responses and follow-up with probing questions to clarify or expand on key points
• Listen actively and take detailed notes to capture accurate quotes and information
• Verify the accuracy of information provided by sources and seek corroborating evidence
• Protect the confidentiality of sources when necessary and adhere to ethical guidelines for interviewing

Financial Statement Analysis

• Understand the three main financial statements: balance sheet, income statement, and cash flow statement
• Analyze the balance sheet to assess a company's assets, liabilities, and equity
• Examine the income statement to evaluate a company's revenue, expenses, and profitability
• Review the cash flow statement to understand a company's cash inflows and outflows from operating, investing, and financing activities
• Calculate key financial ratios (liquidity, solvency, profitability) to assess a company's financial health and performance
• Compare a company's financial statements over time and against industry benchmarks to identify trends and anomalies
• Look for red flags, such as aggressive accounting practices, related-party transactions, or significant changes in financial metrics
• Consult with financial experts, such as accountants or analysts, to gain additional insights and perspectives

Fact-Checking and Verification

• Verify the accuracy of all information, quotes, and data before publishing to maintain credibility and avoid legal issues
• Consult multiple sources to corroborate facts and identify inconsistencies or discrepancies
• Utilize fact-checking tools and resources (Snopes, PolitiFact, FactCheck.org) to verify claims and debunk misinformation
• Review original documents, such as contracts, emails, or financial records, to confirm the accuracy of information
• Seek comment from the subjects of the investigation to allow them to respond to allegations or provide additional context
• Maintain detailed records of all sources, interviews, and research to support the accuracy of the reporting
• Correct any errors or inaccuracies promptly and transparently to maintain trust with readers

Legal and Ethical Considerations

• Adhere to journalistic ethics, including accuracy, fairness, independence, and accountability
• Understand and comply with relevant laws, such as libel, privacy, and copyright, to avoid legal liability
• Protect the confidentiality of sources when necessary and honor any agreements made with sources
• Avoid conflicts of interest, such as accepting gifts or favors from sources or having a financial stake in the story's outcome
• Disclose any potential biases or limitations in the reporting to maintain transparency with readers
• Respect the privacy and safety of sources, particularly whistleblowers or vulnerable individuals
• Seek legal advice when necessary to navigate complex legal issues or potential risks
• Consider the potential impact of the reporting on individuals, companies, and society, and weigh the public interest against potential harm

Writing and Storytelling Strategies

• Develop a clear and compelling narrative that engages readers and communicates the significance of the story
• Use a strong lead that captures attention and sets the tone for the story
• Organize the story logically, using subheadings, bullet points, or other visual elements to break up long passages of text
• Incorporate vivid details, anecdotes, and quotes to bring the story to life and humanize the issues
• Explain complex financial or technical concepts in plain language that is accessible to a general audience
• Use data visualization, such as charts, graphs, or infographics, to illustrate key findings and trends
• Provide context and background information to help readers understand the significance of the story
• Conclude with a strong ending that summarizes the key points and leaves readers with a clear understanding of the story's impact and implications

Case Studies and Real-World Applications

• Enron scandal (2001): Investigative reporting exposed widespread accounting fraud and corporate corruption, leading to the company's bankruptcy and criminal convictions for top executives
• Wells Fargo fake accounts scandal (2016): Journalists uncovered a systemic practice of creating unauthorized accounts to meet sales targets, resulting in regulatory fines and leadership changes
• Panama Papers (2016): A collaborative investigation by journalists from around the world exposed a vast network of offshore tax havens and financial secrecy, leading to political resignations and policy reforms
• Theranos fraud (2015-2018): Investigative reporting revealed that the blood-testing startup had misled investors and the public about its technology, leading to the company's downfall and criminal charges against its founder
• Cambridge Analytica data scandal (2018): Journalists uncovered the unauthorized harvesting of Facebook user data for political targeting, leading to increased scrutiny of tech companies' data practices and privacy regulations
• Boeing 737 MAX crashes (2019): Investigative reporting revealed design flaws and regulatory failures that contributed to two deadly plane crashes, leading to the grounding of the aircraft and significant financial and reputational damage for Boeing
• Opioid epidemic (ongoing): Journalists have investigated the role of pharmaceutical companies, distributors, and doctors in fueling the opioid crisis, leading to lawsuits, settlements, and policy changes to address the public health emergency