Anderson's Business Law and the Legal Environment 20th Edition by David Twomey,Marianne Jennings

Exercise 13

Suzy Wetlaufer, editor of the Harvard Business Review , interviewed former General Electric CEO Jack Welch for a piece in the business magazine. In December 2001, she asked that the piece be withdrawn because her objectivity might have been compromised. Those at the magazine did another interview and published that interview in the February issue of the magazine. Editorial director of the magazine, Walter Kiechel, who supervised Ms. Wetlaufer, acknowledged as true a report in the Wall Street journal about an alleged affair between Ms. Wetlaufer and Mr. Welch and that Mr. Welch's wife had called to protest the article's objectivity. Mr. Welch refused to confirm or deny an affair with Ms. Wetlaufer, who was divorced. Some staff members asked that Ms. Wetlaufer resign from her $277,000-per-year job, but she refused. Their objections were that she compromised her journalistic integrity. Mr. Kiechel, on the other hand, noted that she did "the right thing in raising her concerns." 24
Businesses also enjoy freedom of speech protections under the First Amendment. The First Amendment provides that "Congress shall make no law... abridging the freedom of speech... " 22
The U S. Supreme Court has clarified the free speech rights of business through classification of the types of business speech. One form of business or commercial speech is advertising. This form of speech in which businesses tout their products is subject to regulation and restriction on form, content, and placement, and such regulation has been deemed constitutional. (See Chapter 25 and 33 for more information on the regulation of advertising.) However, there are other forms of commercial speech. Businesses do have the right to participate in political processes such as creating political action committees and supporting or opposing ballot initiatives. Businesses often take positions and launch campaigns on ballot initiatives that will affect the taxes they will be required to pay.