BUSINESS ETHICS

A FAKE QUICK
COUNT BY TV
ONE
GROUP ASSIGNMENT

AJI SAPTAJI HASNAH NIKEN

WULANDARI XAVIER HENRY
VITTORICO ANDREAS

CHAPTER 1
COMPANY OVERVIEW

1.1.

Company Profile
TV 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)

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
-

1.3.

February, 2008 (as TV One)

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
Company Position
TV 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 Indonesia

From 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 9 th 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 2
CASE STUDY

2.1.

Indonesias President Election

Presidential 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 1 st 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 vicepresidential 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

DPR
Party

Supporting

DPR seats

as

seats %

Gerindr

PartaiGerakan

Indonesia Raya
Majority

PartaiGolonganKar
Golkar
ya

Nominee: PrabowoSubi

coalition:

PartaiPersatuan

anto

Gerindra/Golkar/P

Pembangunan

Running

PP/PKS/PAN/De

PartaiKeadilan

mate: HattaRajasa

mokrat

PPP

63.04%

PKS
Sejahtera

353 / 560

PartaiAmanatNasio
PAN
nal
PD

PartaiDemokrat
PartaiDemokrasi

PDIP

Indonesia

Minority

Perjuangan

coalition:

PartaiHatiNurani

Nominee: JokoWidodo

Rakyat

Running

NasDe

PartaiNasionalDem

mate: JusufKalla

okrat

Hanura

PartaiKebangkitanB

PDI
P/Hanura/NasDe
m/PKB
207 / 560

PKB
angsa
Table 1. Indonesia Parties Supports of President Candidate

36.96%

2.2.

President Elections Quick Count

Quick 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 Pollsters

Usually, 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 One

Right 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.

Candidate
Erro
Source

Prabowo Subianto

Joko Widodo

- Hatta Rajasa

Jusuf Kalla

48.1%

51.9%

1.25%

47.05%

52.95%

0.20%

47.66%

52.34%

0.81%

46.43%

53.57%

0.42%

Pol Tracking

46.63%

53.37%

0.22%

Populi Center

49.05%

50.95%

2.20%

Radio Republik Indonesia

47.32%

52.68%

0.47%

Saiful Mujani Research

47.09%

52.91%

0.24%

CSIS-Cyrus Network

Indikator Politik Indonesia

(Metro TV news)
Kompas (Litbang)
Lingkaran Survei
Indonesia

Candidate
Erro
Source

Prabowo Subianto

Joko Widodo

- Hatta Rajasa

Jusuf Kalla

51.11%

48.89%

4.26%

50.13%

49.87%

3.28%

Lembaga Survei Nasional

50.56%

49.44%

3.71%

Puskaptis

52.05%

47.95%

5.20%

Center (SMRC)
Indonesia Research
Centre (IRC)
Jaringan Suara
Indonesia (JSI)

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.
Puskaptis
The 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 3
CASE ANALYSIS
3.1.

Ethical Issues
There 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. Shareholders

From 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 immoral

A 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 discovery

A belief that because the activity helps the company, the company will condone

it and even protect the person who engages it

These theories can be related to the ethical issue in TV One case.

3.1.2 Corporate Social Responsibility

Corporate 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.
Moral
Companies 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
2.

environment.
License To Operate
Companies 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

3.

business.
Reputation
Companies need to do CSR initiatives because they will improve company
image, strengthen its brands, enliven morale, and even raise the value of its

4.

stocks.
Sustainability
Companies 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 Governance
Corporate 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.

2.
3.

Transparency
Company is openness in managing the system and procedures to achieve
objectives.
Accountability
Effective control based on balance of power (between authority and power).
Responsibility
Roles and authority of each function based on professionalism and

performance, and the principle of business ethics.

Independency
No intervention from other parties.
5.
Fairness
Fair treatment based on the stakeholders rights.
Its clear that in TV One case they didnt implement GCG since they break all
4.

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 Government

It 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 oversight
2.
Corporate policies
3.
Communication of standards and procedures
4.
Compliance with standards and procedures
5.
Consistent discipline
6.
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 Study

3.2.1 Kenya, 2008
After 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, 2012
During 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 Election
On 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 Election

The 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 Issue

One 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 4
CONCLUSION AND RECOMMENDATION
4.1 Conclusion
Right after the election on 9 July 2014, Joko Widodo announced his victory
based on quick counts

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

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NDI, the quick count and election observation
http://www.indonesia-2014.com/read/2014/07/11/rekam-jejak-empat-lembagaunggulkan-prabowo#.VTvjC8lKYYA
http://www.bbc.co.uk/indonesia/berita_indonesia/2014/07/140716_persepipemilu
Grysller, 2012
http://www.bbc.co.uk/indonesia/berita_indonesia/2014/07/140716_persepipemilu
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