TEXT C No company likes to be
told it is contributing to the moral decline of nation. "Is this what you
intended to accomplish with your careers" Senator Robert Dole asked Time Warner
executives last week. "You have sold your souls, but must you corrupt our nation
and threaten our children as well" At Time Warner, however, such questions are
simply the latest manifestation of the soul searching that has involved the
company ever since the company was born in 1990. It a self-examination that has,
at various times, involved issues of responsibility, creative freedom and the
corporate bottom line. At the core of this debate is chairman
Gerald Levin, 56, who took over for the late Steve Ross in 1992. On the
financial front, Levin is under pressure to raise the stock price and reduce the
company’s mountainous debt, which will increase to $17.3 billion after two new
cable deals close. He has promised to sell off some of the property and
restructure the company, but investors are waiting impatiently.
The flap over rap is not making life any easier for him. Levin has
consistently defended the company’s rap music on the grounds of expression. In
1992, when Time Warner was under fire for releasing Ice T’s violent rap song Cop
Killer, Levin described rap as a lawful expression of street culture, which
deserves an outlet. "The test of any democratic society," he wrote in a Wall
Street Journal column, "lies not in how well it can control expression but in
whether it gives freedom of thought and expression the widest possible latitude,
however disputable or irritating the results may sometimes be. We won’t retreat
in the face of any threats." Levin would not comment on the
debate last week, but there were signs that the chairman was backing off his
hard-line stand, at least to some extent. During the discussion of rock singing
verses at last month’s stockholders’ meeting, Levin asserted that "music is not
the cause of society ills" and even cited his son, a teacher in the Bronx, New
York, who uses rap to communicate with students. But he talked as well about the
"balanced struggle" between creative freedom and social responsibility, and he
announced that the company would launch a drive to develop standards for
distribution and labeling of potentially objectionable music.
The 15-member Time Warner beard is generally supportive of Levin and his
corporate strategy. But insiders say several of them have shown their concerns
in this matter. "Some of us have known for many, many years that the freedoms
under the First Amendment are not totally unlimited," says Lute. "I think
it is perhaps the case that some people associated with the company have only
recently come to realize this." (458 words) In face of the recent attacks on the company, the chairman ______.
A.stuck to a strong stand to defend freedom of expression B.softened his tone and adopted some new policy C.changed his attitude and yielded to objection D.received more support from the 15-member board