PBS NewsHour; February 29, 2012 3:00pm-4:00pm PST

Captioning sponsored by MacNEIL/LEHRER PRODUCTIONS

>> Ifill: NORTH KOREA AGREED TODAY TO TEMPORARILY STOP NUCLEAR TESTING, URANIUM ENRICHMENT AND MISSILE LAUNCHES AND TO ALLOW FOREIGN MONITORING OF ITS MAIN REACTOR COMPLEX. GOOD EVENING, I'M GWEN IFILL.

>> Woodruff: AND I'M JUDY WOODRUFF. ON THE "NEWSHOUR" TONIGHT, WE ASSESS WHAT THESE STEPS, COMING TWO MONTHS AFTER THE DEATH OF LONG-TIME RULER KIM JONG IL, MEAN FOR RESTARTING THE MULTI-NATIONAL DISARMAMENT- FOR-AID TALKS.

>> Ifill: THEN, WE TURN TO PRESIDENTIAL POLITICS, AS THE CANDIDATES PIVOT TO SUPER TUESDAY, WHEN VOTERS IN TEN STATES WILL SELECT MORE THAN 400 CONVENTION DELEGATES.

>> Woodruff: PAUL SOLMAN REPORTS ON COMPANIES WHO DEFINE SUCCESS AS DOING GOOD DEEDS AS WELL AS MAKING MONEY.

>> WHAT THIS LOOK, OR EVEN THIS ONE HAS TO DO WITH SOCIALLY CONSCIOUS BUSINESS.

>> Ifill: IN MOSCOW, MARGARET WARNER TALKS WITH WITH ALEXEI NAVALNY, A LEADING REFORMER, FOUR DAYS BEFORE THE RUSSIAN PRESIDENTIAL ELECTIONS.

>> Woodruff: AND WE CLOSE WITH AN UPDATE ON THE NEWS CORP STORY, AS JAMES MURDOCH STEPS DOWN AS HEAD OF THE SCANDAL RIDDEN NEWSPAPER ARM OF THE COMPANY.

>> Ifill: THAT'S ALL AHEAD ON TONIGHT'S "NEWSHOUR." MAJOR FUNDING FOR THE PBS NEWSHOUR HAS BEEN PROVIDED BY:

>> AND BY THE BILL AND MELINDA GATES FOUNDATION. DEDICATED TO THE IDEA THAT ALL PEOPLE DESERVE THE CHANCE TO LIVE A HEALTHY PRODUCTIVE LIFE. AND WITH THE ONGOING SUPPORT OF THESE INSTITUTIONS AND FOUNDATIONS. AND... THIS PROGRAM WAS MADE POSSIBLE BY THE CORPORATION FOR PUBLIC BROADCASTING. AND BY CONTRIBUTIONS TO YOUR PBS STATION FROM VIEWERS LIKE YOU. THANK YOU.

>> Woodruff: FROM WASHINGTON AND PYONGYANG CAME WORD TODAY OF A NEW DEAL TO FREEZE NORTH KOREA'S NUCLEAR PROGRAM. IT WOULD COME IN EXCHANGE FOR FOOD ASSISTANCE FROM THE U.S. SECRETARY OF STATE HILLARY CLINTON CONFIRMED THE AGREEMENT AT A CONGRESSIONAL HEARING THIS MORNING.

>> TODAY'S ANNOUNCEMENT REPRESENTS A MODEST FIRST STEP IN THE RIGHT DIRECTION. WE, OF COURSE, WILL BE WATCHING CLOSELY AND JUDGING NORTH KOREA'S NEW LEADERS BY THEIR ACTIONS.

>> Woodruff: UNDER THE DEAL, NORTH KOREA AGREED TO PUT IN PLACE A MORATORIUM ON LONG-RANGE MISSILE LAUNCHES AND TO SUSPEND WORK TO ENRICH URANIUM AT ITS YONGBYON NUCLEAR FACILITY. THE NORTH ALSO PROMISED TO ALLOW THE RETURN OF U.N. NUCLEAR INSPECTORS TO VERIFY ITS CLAIMS, FOR THE FIRST TIME SINCE 2009. FOR ITS PART, THE UNITED STATES WILL PROVIDE SOME 240,000 METRIC TONS OF FOOD AID. THE AGREEMENT FOLLOWED TALKS IN CHINA LAST WEEK, BETWEEN U.S. AND NORTH KOREAN NEGOTIATORS. IT WAS THE FIRST SUCH MEETING SINCE NORTH KOREA'S LONGTIME RULER KIM JONG IL DIED IN DECEMBER AND WAS SUCCEEDED BY HIS SON, KIM JONG UN. SECRETARY CLINTON TODAY CALLED IT A REMINDER THAT THE WORLD IS TRANSFORMING.

>> THE UNITED STATES-- I WILL BE QUICK TO ADD-- STILL HAS PROFOUND CONCERNS. BUT ON THE OCCASION OF KIM JONG IL'S DEATH, I SAID THAT IT IS OUR HOPE THAT THE NEW LEADERSHIP WILL CHOOSE TO GUIDE THEIR NATION ONTO THE PATH OF PEACE BY LIVING UP TO ITS OBLIGATIONS.

>> Woodruff: THIS IS NOT THE IN 1994, FORMER PRESIDENT JIMMY CARTER-- ACTING FOR THE CLINTON ADMINISTRATION-- BROKERED A DEAL FOR PYONGYANG TO SHUT DOWN NUCLEAR PLANTS IN EXCHANGE F U.S. AID IN BUILDING ELECTRICAL POWER PLANTS. THE YONGBYON PLANT REMAINED CLOSED UNTIL 2002 WHEN BOTH SIDES ACCUSED THE OTHER OF NOT LIVING UP TO THE AGREEMENT. FROM THERE, THE NORTH WENT ON TO TEST-FIRE LONG-RANGE MISSILES AND CONDUCT ITS FIRST UNDERGROUND NUCLEAR TEST. IN 2007, THE BUSH ADMINISTRATION, ALONG WITH SOUTH KOREA, RUSSIA, CHINA AND JAPAN NEGOTIATED A NEW HALT TO NORTH KOREA'S NUCLEAR PROGRAM. THIS TIME, NORTH KOREA AGAIN AGREED TO DISABLE THE COMPLEX AT YONGBYON, AND IT RECEIVED ONE MILLION TONS OF FUEL. THE DISABLING WAS HALTED MONTHS LATER THOUGH, AFTER THE U.S. AND NORTH KOREANS WERE UNABLE TO AGREE ON VERIFICATION MEASURES. GIVEN THAT HISTORY, WHITE HOUSE SPOKESMAN JAY CARNEY WAS ASKED TODAY ABOUT PROSPECTS FOR THIS NEW ARRANGEMENT.

>> THE AGREEMENTS THAT THE NORTH KOREANS HAVE MADE ARE VERY WELCOME, BUT OBVIOUSLY THEY NEED TO BE FOLLOWED UP BY ACTIONS. AND COMMITMENTS TO DO SOMETHING ARE ONE THING; ACTUALLY DOING THEM ARE ANOTHER. SO WE WILL PURSUE THIS POLICY AREA WITH THAT... WITH THAT APPROACH IN MIND.

>> Woodruff: FOR NOW, WORD THAT NORTH KOREA WILL STEP BACK FROM NUCLEAR WEAPONS WORK, WAS WELCOMED TODAY IN JAPAN AND SOUTH KOREA. FOR MORE ON ALL OF THIS WE GET TWO VIEWS. FORMER U.S. AMBASSADOR TO SOUTH KOREA DONALD GREGG. HE'S NOW CHAIRMAN EMERITUS OF THE BOARD OF THE KOREA SOCIETY. AND BALBINA HWANG, A VISITING PROFESSOR AT GEORGETOWN UNIVERSITY WHO WAS A KOREA SPECIALIST AT THE STATE DEPARTMENT DURING THE LAST BUSH ADMINISTRATION. AND WE THANK YOU BOTH FOR BEING HERE. AMBASSADOR GREGG, TO YOU FIRST, HOW BIG A BREAKTHROUGH IS THIS?

>> I THINK THIS IS VERY SIGNIFICANT. IT A TEST FIRST MAJOR STEP FORWARD TAKEN BY THE TWO COUNTRIES SINCE PRESIDENT OBAMA CAME INTO OFFICE. AND IT ALSO, I THINK, SAYS A LOT ABOUT THE WAY THE KIM JONG-UN REGIME IN NORTH KOREA IS GOING TO OPERATE. THEY'RE A VERY HIERARCHICAL COUNTRY, AND IT'S INTERESTING TO ME THAT KIM GAY WAN WHO HAS BEEN PROMOTED IS HAPPY TO MEET WITH GWEN DAVIS, A LOWER RANK THAN THE MAN HE SUCCEEDED, STEVE BOSWORTH. SO THERE WAS NO TALK OF HIERARCHY, THERE WAS JUST TALK ON ISSUES THAT HAD LONG DIVIDED US AND WHICH WE WERE ABLE TO TALK ABOUT SINCE KIM JONG-UN CAME INTO POWER.

>> Woodruff: BALBINA HWANG, DO YOU AGREE THIS IS A BIG BREAK THROUGH?

>> I DON'T, UNFORTUNATELY. I WOULD HESITATE TO CALL IT A STEP IN THE RIGHT DIRECTION. THE PROBLEM IS THE BAR HAS BEEN MOVED SO FAR BACKWARDS THAT EVEN IF WE RETURN TO WHERE TALKS STALLED IN OCTOBER, 2008, I'M NOT SURE THIS STATEMENT TODAY GETS US TO THAT POINT. IT'S CERTAINLY LEANING IN THE RIGHT DIRECTION AND I THINK IT'S A POSITIVE SIGN BUT I HESITATE TO READ TOO MUCH INTO THIS.

>> Woodruff: WHAT ABOUT AMBASSADOR TKPWR +*EL GREGG'S PT YOU HAVE RANKING OFFICIALS ON THE NORTH KOREAN SIDE THAT ARE WILLING TO MEET WITH LESS RANKING FOLKS FROM THE U.S. SIDE.

>> I'M NOT SURE THAT'S QUITE THE CALCULATION. GLEN DAVIES WAS THE AMBASSADOR FOR I.A.E.A. OF THE UNITED STATES IN VIENNA SO HE DOES CERTAINLY IS AMBASSADORIAL STATUS. I THINK THE MORE IMPORTANT POINT HERE IS TO MAKE SURE WE DON'T READ TOO MUCH INTO THIS BEING A TREMENDOUS SIGN OF KIM JONG-UN'S NEW REGIME AND THAT THIS IS A TREMENDOUS SIGN OF CHANGE. BECAUSE, IN FACT, THE STATEMENT REVEALS IT WAS ACTUALLY VERY CAREFULLY CRAFTED AND I THINK IT ACTUALLY SHOWS A GREAT DEAL OF CONTINUITY WITH THE OLD REGIME.

>> Woodruff: AMBASSADOR GREGG, WHAT DO YOU SEE, THOUGH, IN HERE, THAT GIVES YOU HOPE? YOU MENTIONED THE DIFFERENT LEVELS, THE OFFICIALS WHO CAME, THE SENSE THAT THIS NEW REGIME IN NORTH KOREA WANTS TO TALK. WHAT ELSE DO YOU SEE IN HERE THAT GIVES YOU HOPE?

>> WELL, PART OF IT IS THE NEW ATTITUDE SHOWN BY AMBASSADOR DAVIES. HE WELCOMED THE SIGNS OF CONTINUITY WHICH THE THINGS THAT HE HEARD FROM KIM GAE HWAN. AND ALSO THE AGREEMENTS THAT THE NORTH KOREANS HAVE SET IN PLACE ARE GOING TO TEST HOW QUICKLY THEY ARE WILLING TO IMPLEMENT THESE NEW STEPS. IT'S UP TO THEM TO REACH OUT TO THE I.A.E.A. TO ARRANGE PROCEDURES FOR INSPECTIONS AT I DON'T THINK BEE I DON'T THINK. THEY'VE BEEN TOLD NO FOOD WILL BE DELIVERED UNTIL THERE ARE MONITORS SET UP IN INSIDE NORTH KOREA. NOW THE KOREANS WHEN THEY WANT TO DO SOMETHING CAN DO IT QUITE QUICKLY. I SAW THAT WHEN I ACCOMPANIED THE NEW YORK PHILHARMONIC ON THEIR VISIT TO NORTH KOREA THREE OR FOUR YEARS AGO. THE NORTH KOREANS MOVED VERY ADROITLY AND GAVE A WONDERFUL RECEPTION. SO WE WILL QUICKLY KNOW WHETHER THEY'RE SERIOUS ABOUT THESE AGREEMENTS BY THE SPEED WITH WHICH THEY WILL REACH OUT TO THE I.A.E.A. AND ARRANGE TO HAVE FOOD MONITORS PUT IN PLACE.

>> Woodruff: WHY ISN'T THAT, BALBINA HWANG, A PROMISING SIGN THAT SOMETHING COULD HAPPEN IN A POSITIVE DIRECTION AND QUICKLY?

>> CERTAINLY IT IS A POSITIVE SIGN. ON THE OTHER HAND, I THINK THERE'S A VERY LONG WAY TO GO BEFORE THIS LEADS TO ANY REAL PROGRESS IN TERMS OF THE OVERALL GOAL OF DEKNEW CLEARIZATION AND CERTAINLY EVEN KICK-STARTING THE ACTUAL SIX PARTY TALKS.

>> Woodruff: THAT'S A REFERENCE TO THE... THE MULTINATIONAL PROCESS THAT HAS BEEN IN PLACE FOR PRETTY MUCH THE LAST DECADE. THE PROBLEM IS EVEN IF THE I.A.E.A. INSPECTORS COME IN, IT'S UNCLEAR FROM THE NORTH KOREAN STATEMENT-- WHICH IS QUITE DIFFERENT FROM THE U.S. STATE ISSUED TODAY-- ON WHETHER OR NOT THAT EVEN BRINGS US BACK TO WHERE THE SIX PARTY TALKS STALLED IN OCTOBER, 2008. IT DOES NOT SPECIFICALLY STATE PLUTONIUM WHICH IS THE PROBLEM WITH THE ACTUAL NUCLEAR WEAPONS THEY HAVE TODAY.

>> Woodruff: IN FACT, AMBASSADOR GREGG, AS WE UNDERSTAND IT, THE NORTH KOREAN STATEMENT DIDN'T MENTION URANIUM, IT DIDN'T MENTION PLUTONIUM. WHAT'S THE SIGNIFICANCE OF THAT?

>> WELL, THAT'S VERY SIGNIFICANT BECAUSE THE NUCLEAR WEAPONS THEY HAVE PRODUCED HAVE BEEN PRODUCED THROUGTHROUGH PLUTONIUM, NOT UR. SO IT'S CLEAR FROM WHAT AMBASSADOR DAVIES HAS SAID IS THAT OUR GOAL IS TO GET AT DENUCLEARIZATION OF NORTH KOREA. BUT THESE STEPS ARE IN THE RIGHT DIRECTION AND I WOULD STOUGT BALBINA AND OTHERS WHO ARE SO DEEPLY SKEPTICAL THAT WE STOP LOOKING BACKWARD TO WHERE WE HAVE BEEN BUT LET'S LOOK FORWARD TO WHERE WE CAN GO AND WHAT HAS BEEN AGREED TO IN BEIJING SETS A VERY CLEAR PATH TOWARD PRELIMINARY STEPS THAT CAN LAY THE BASIS FOR SIGNIFICANT NEGOTIATIONS ON DENUCLEARIZATION IN THE FUTURE. BUT THAT'S GOING TO TAKE TIME. IT ISN'T GOING TO HAPPEN IMMEDIATELY BECAUSE THERE ARE DECADES OF MISTRUST BETWEEN OUR TWO COUNTRIES THAT WE HAVE TO OVERCOME. BUT THIS IS A REALLY MAJOR STEP IN THE RIGHT DIRECTION IN MY VIEW.

>> Woodruff: WHAT ABOUT THAT AS AN APPROACH, LOOKING AHEAD RATHER THAN BACK?

>> CERTAINLY WE SHOULD DO THAT. BUT ALSO HISTORY HAS MUCH TO TEACH US AND I THINK THE POINT HERE IS IN THIS STATEMENT ONE VERY IMPORTANT MISSING PIECE WAS NO MENTION ABOUT INTERKOREAN RELATIONS. NOW, I KNOW THE U.S. STATE DEPARTMENT...

>> Woodruff: WITH SOUTH KOREA?

>> THAT IS CORRECT, IMPROVING RELATIONS BETWEEN NORTH KOREA AND SOUTH KOREA. NOW THE STATE DEPARTMENT HAS SAID THAT THAT WAS INCLUDED IN THE DIALOGUE WITH... IN BEIJING WITH THE NORTH KOREANS AND THAT THE U.S. POSITION HAS NOT CHANGED ON THAT. HOWEVER, I'M NOT CERTAIN HOW MUCH OF A PRIORITY THAT IS AND THAT CONCERNS ME A GREAT DEAL.

>> Woodruff: AMBASSADOR GREGG, WHAT DO YOU LOOK FOR NEXT TO GIVE YOU A SENSE OF WHETHER THIS AGREEMENT MAY BEAR FRUIT EVENTUALLY?

>> WELL, I THINK IT'S IMPORTANT FOR THE UNITED STATES TO MAINTAIN VERY GOOD RELATIONS WITH SOUTH KOREA AND IT'S INTERESTING TO ME THAT THE SOUTH KOREANS HAVE APPROVED THIS AGREEMENT. I ALSO LOOK FOR REACTIONS FROM WITHIN NORTH KOREA TO WHAT HAS BEEN AGREED TO BECAUSE WE'VE ALL BEEN SAYING CAN KIM JONG-UN REALLY MAKE IT AS A NEW LEADER? HE'S LESS THAN 30 YEARS OLD. BUT THE INFORMATION OF THIS AGREEMENT... THE IMPLEMENTATION OF THIS AGREEMENT WILL VALIDATE HIS LEADERSHIP IN NORTH KOREA IF IT BRINGS FOOD TO MOTHERS AND SMALL CHILDREN THAT WILL BE TAKEN AS EVIDENCE IN NORTH KOREA THAT HE IS A SUCCESSFUL LEADER WHO'S ESTABLISHING BETTER RELATIONS WITH THE OUTSIDE WORLD THAN NORTH KOREA HAS HAD FOR SOME TIME. SO I THINK THERE ARE POSITIVES TO THIS AGREEMENT BOTH IN PYONGYANG AND THE UNITED STATES AND SOUTH KOREA AS WELL.

>> Woodruff: JUST BRIEFLY, WOULD YOU AGREE THOSE ARE THE NEXT STEPS TO LOOK FOR?

>> THEY ARE, BUT I WOULD CAUTION ABOUT THE FOOD AID. IF, IN FACT, WE ARE PREFACING OUR SHIPMENTS OF FOOD AID BASED ON MONITORING, IF NORTH KOREA CANNOT MEET THOSE REQUIREMENTS THEN FROM THE MESSAGE THAT KIM JONG-UN SENDS TO HIS PEOPLE IS THAT THE UNITED STATES RENEGED ON THE DEAL. SO, AGAIN, IT IS... WE HAVE TO BE QUITE CAREFUL WITH ALL OF THESE STEPS AND MEASURES.

>> Woodruff: WELL, WE THANK YOU BOTH. BREAKING AND ENTERING KNOW WHAT HWANG, DONALD GREGG.

>> Ifill: STILL TO COME ON THE "NEWSHOUR": THE REPUBLICAN DELEGATE PUZZLE; BUSINESS WITH A CONSCIENCE; AN OPPOSITION VOICE FROM RUSSIA AND UPHEAVAL AT RUPERT MURDOCH'S NEWS CORP. BUT FIRST, WITH THE OTHER NEWS OF THE DAY. HERE'S HARI SREENIVASAN.

>> Sreenivasan: AT LEAST NINE PEOPLE WERE KILLED IN THE MIDWEST EARLY TODAY AS AN OUTBREAK OF TORNADOES RIPPED ACROSS THE REGION. MORE THAN 30 OTHERS WERE HURT, AND A SERIES OF SMALL TOWNS SUFFERED HEAVY DAMAGE. THE VIEW FROM THE AIR OVER HARRISBURG, ILLINOIS WAS ONE OF NEAR-TOTAL DEVASTATION. ENTIRE ROOFS WERE STRIPPED OFF HOMES, WALLS CAVED IN ON OTHERS AND OTHER BUILDINGS WERE UNRECOGNIZABLE JUST PILES OF SHREDDED LUMBER.

>> IT'S A HORRIFIC EVENT THAT'S HAPPENED TO US HERE IN HARRISBURG. THE LOSS OF LIVES, THE INJURIES, THE DEVASTATION IS JUST. IT'S VERY PROFOUND AND IT'S HEARTBREAKING TO TELL YOU THE TRUTH.

>> Sreenivasan: CREWS WERE ALREADY AT WORK CLEARING DEBRIS WHILE STUNNED RESIDENTS SEARCHED THROUGH WHAT WAS LEFT OF THEIR HOMES. THE COMMUNITY OF 9,000 HAD TAKEN A DIRECT HIT FROM A STORM, WITH PEAK WINDS OF 170 MILES AN HOUR.

>> IT'S UNBELIEVABLE. I CAN'T BELIEVE THE MEASURE OF DAMAGE IT DID TO THIS BUILDING. IT'S LIKE THERE WAS NO STRUCTURE AND IT JUST TOOK IT COMPLETELY OUT. I MEAN AS YOU CAN TELL IT'S TOTAL DEVASTATION.

>> Sreenivasan: THE DEADLY STRING OF STORMS TREKKED STEADILY EASTWARD AS THE DAY WORE ON, BEGINNING IN SMALL TOWNS IN KANSAS, AND MOVING THROUGH MISSOURI, ILLINOIS AND KENTUCKY. IN ALL, THE NATIONAL WEATHER SERVICE REPORTED AT LEAST 16 TORNADO SIGHTINGS. ONE OF THEM HIT THE WELL-KNOWN MUSIC THEATER TOWN OF BRANSON, MISSOURI.

>> THERE'S EIGHT TO NINE MILE TRACK OF DAMAGE. BOUNCED ALONG HERE AND DID SIGNIFICANT DAMAGE.

>> Sreenivasan: IN NEIGHBORING KANSAS, NEARLY 40% OF THE TOWN OF HARVEYVILLE WAS DAMAGED.

>> ALL OF A SUDDEN THE WINDOWS

>> Sreenivasan: THE STORMS WERE SPAWNED WHEN A BROAD COLD FRONT COMING OFF THE ROCKY MOUNTAINS SLAMMED INTO WARM, HUMID AIR OVER THE EASTERN HALF OF THE U.S. IN SYRIA, GOVERNMENT TROOPS AND TANKS PUSHED INTO A REBEL-HELD AREA IN THE BATTERED CITY OF HOMS. IT APPEARED TO HERALD A GROUND OFFENSIVE TO RECAPTURE THE NEIGHBORHOOD OF BABA AMR. THAT SECTION OF THE CITY HAS BEEN UNDER HEAVY BOMBARDMENT FOR MORE THAN THREE WEEKS. THE U.N. NOW ESTIMATES THAT MORE THAN 7,500 PEOPLE HAVE DIED IN SYRIA SINCE THE UPRISING BEGAN, ONE YEAR AGO. EGYPT HAS LIFTED A BAN ON ALLOWING SEVEN AMERICANS-- EMPLOYED BY PRO-DEMOCRACY GROUPS-- TO LEAVE THE COUNTRY. THE SEVEN WERE CHARGED WITH USING ILLEGAL FOREIGN FUNDING TO INCITE UNREST AGAINST EGYPT'S MILITARY LEADERS. IN RESPONSE, THE U.S. THREATENED TO CUT OFF NEARLY $1.6 BILLION IN AID. NINE OTHER AMERICANS WERE ALSO CHARGED. THEY'VE ALREADY LEFT EGYPT. THE U.S. ECONOMY IS DOING BETTER THAN THE FEDERAL RESERVE EXPECTED. FED CHAIRMAN BEN BERNANKE TOLD A HOUSE HEARING TODAY THAT THE DROP IN UNEMPLOYMENT HAS EXCEEDED PROJECTIONS. AT THE SAME TIME, HE SAID THE FED EXPECTS THAT TREND TO SLOW, AS THE YEAR PROGRESSES.

>> NOTWITHSTANDING THE BETTER RECENT DATA, THE JOB MARKET REMAINS FAR FROM NORMAL: THE UNEMPLOYMENT RATE REMAINS ELEVATED, LONG-TERM UNEMPLOYMENT IS STILL NEAR RECORD LEVELS, AND THE NUMBER OF PERSONS WORKING PART TIME FOR ECONOMIC REASONS IS VERY HIGH.

>> Sreenivasan: BERNANKE LEFT OPEN THE POSSIBILITY OF UPGRADING THE FED'S ECONOMIC OUTLOOK. WALL STREET SAW IT AS A SIGNAL THAT THE CENTRAL BANK WILL TAKE NO FURTHER ACTION TO BOOST GROWTH AND THAT SENT STOCK PRICES FALLING. THE DOW JONES INDUSTRIAL AVERAGE LOST 53 POINTS TO SLIDE BACK UNDER 13,000. IT FINISHED AT 12,952. THE NASDAQ FELL NEARLY 20 POINTS TO CLOSE BELOW 2,967. THERE WAS MORE TODAY ON DISCLOSURES THAT REMAINS OF SOME VICTIMS FROM THE 9/11 PENTAGON ATTACK ENDED UP IN A LANDFILL. A 2002 MEMO SHOWED THE DISPOSAL WAS BASED ON WRITTEN GUIDANCE FROM DAVID CHU. HE WAS PENTAGON PERSONNEL CHIEF AT THE TIME, UNDER DEFENSE SECRETARY RUMSFELD. ALL INDICATIONS ARE THAT UNIDENTIFIED REMAINS WERE INCINERATED, THEN TAKEN TO A LANDFILL. PENTAGON OFFICIALS SAY THE PRACTICE ENDED IN 2008. FOR THE FIRST TIME, A HIGH-VALUE DETAINEE AT GUANTANAMO HAS REACHED A PLEA DEAL. A PAKISTANI MAN-- MAJID KHAN-- ADMITTED TODAY THAT HE HELPED PLOT AL-QAEDA ATTACKS. U.S. MILITARY PROSECUTORS SAID HE HAD TALKED OF TRYING TO BLOW UP FUEL TANKS IN THE U.S., AND OF ASSASSINATING PERVEZ MUSHARRAF, THE FORMER PRESIDENT OF PAKISTAN. KHAN HAS BEEN HELD FOR NEARLY A DECADE. HE HAS AGREED TO TESTIFY AGAINST OTHER DETAINEES, IN EXCHANGE FOR A REDUCED SENTENCE. SINGER DAVY JONES, WHO STARRED WITH "THE MONKEES" IN THE 1960s, DIED TODAY, OF A HEART ATTACK, IN INDIANTOWN, FLORIDA. JONES AND THREE OTHERS WERE RECRUITED IN 1966 FOR A T.V. SHOW ABOUT THE ADVENTURES OF A POP BAND. IT LASTED TWO YEARS. THE MONKEES HAD A STRING OF HITS, INCLUDING "LAST TRAIN TO CLARKSVILLE" AND "DAYDREAM BELIEVER." DAVY JONES WAS 66 YEARS OLD. THOSE ARE SOME OF THE DAY'S MAJOR STORIES. NOW, BACK TO GWEN.

>> Ifill: WE TURN NOW TO THE PRESIDENTIAL CAMPAIGN AS THE CANDIDATES TURNED THEIR ATTENTION TO NEXT WEEK'S BIG SUPER TUESDAY CONTESTS. MITT ROMNEY BEAT RICK SANTORUM BY JUST THREE POINTS IN MICHIGAN LAST NIGHT. BUT THAT DIDN'T STOP HIM FROM HIS VICTORY LAP.

>> WE DIDN'T WIN BY A LOT, BUT WE WON BY ENOUGH, AND THAT'S ALL THAT COUNTS. ( CHEERS )

>> Ifill: EVEN THAT NARROW WIN OVER A STIFF SANTORUM CHALLENGE PROVED ENOUGH TO HEAD OFF WHAT WOULD HAVE BEEN AN EMBARRASSING LOSS FOR ROMNEY IN HIS HOME STATE. A CLEARCUT WIN IN ARIZONA AWARDED ROMNEY 29 DELEGATES, AND MICHIGAN OFFICIALS SAID THE CLOSE FINISH THERE WOULD GIVE EACH CANDIDATE 15 DELEGATES EACH. WITH TEN STATES VOTING ON SUPER TUESDAY NEXT WEEK, ROMNEY MOVED ON TO THE NEXT BIG POTENTIAL PRIZE TODAY-- OHIO.

>> THE REASON I WON YESTERDAY IN MICHIGAN AND IN ARIZONA WAS BECAUSE I'M TALKING ABOUT THE ISSUE PEOPLE CARE MOST ABOUT-- AND I UNDERSTAND THAT ISSUE PERSONALLY. AND THAT'S THE ECONOMY AND JOB CREATION, BALANCING BUDGETS. THE SKILL OF CREATING MORE JOBS, WITH LESS DEBT AND SMALLER GOVERNMENT IS SOMETHING I UNDERSTAND. WHEN THE MEDIA ASKED PEOPLE COMING OUT OF POLLS YESTERDAY WHY THEY VOTED FOR ME, WHAT THEIR INTERESTS WERE, THOSE PEOPLE THAT CARED MOST ABOUT THE ECONOMY AND JOBS VOTED FOR ME.

>> Ifill: SANTORUM TOOK HIS CAMPAIGN TO ANOTHER SUPER TUESDAY STATE, TENNESSEE. HIS STRONG MICHIGAN SHOWING, HE SAID, PUT WIND AT HIS BACK.

>> WE WENT OUT THERE WITH A POSITIVE, HOPEFUL MESSAGE. A MESSAGE ABOUT JOBS, A MESSAGE ABOUT ENERGY, A MESSAGE ABOUT FAITH AND FAMILY AND THE IMPORTANCE OF THAT AS FOUNDATIONAL INSTITUTIONS OF OUR COUNTRY AND YOU KNOW WHAT, THE PEOPLE OF MICHIGAN ACROSS THE BOARD, ACROSS THE BOARD, RESPONDED TO THAT. AND WE'RE OUT OF HERE TODAY,

>> Ifill: NEWT GINGRICH AND RON PAUL DID NOT CONTEST MICHIGAN OR ARIZONA. FOR GINGRICH, THE PATH TO REVIVAL RUNS THROUGH THE SOUTH. HE SPENT TODAY IN GEORGIA, THE STATE HE REPRESENTED IN CONGRESS.

>> WE NEED TO STAND UP AND WE NEED TO WIN THIS. AND I THINK THE WAY WE WIN IT IS WE DRAW VERY BROAD DISTINCTIONS. SO IF YOU HELP ME NEXT TUESDAY AND NEXT TUESDAY IS VERY IMPORTANT, GEORGIA IS THE BIGGEST STATE IN DELEGATES IN SUPER TUESDAY. WE HAVE A REAL CHANCE HERE TO SEND A SIGNAL TO THE COUNTRY, BUT WE NEED YOUR HELP TO DO IT.

>> Ifill: AND PAUL SPENT LAST NIGHT IN VIRGINIA, WHERE ONLY HE AND ROMNEY QUALIFIED FOR THE BALLOT.

>> WE STILL ARE WINNING A LOT OF DELEGATES, AND THAT'S WHAT COUNTS!

>> Ifill: 419 DELEGATES WILL BE UP FOR GRABS NEXT TUESDAY. TO CLINCH THE NOMINATION, THE REPUBLICAN PARTY'S EVENTUAL NOMINEE HAS TO COLLECT 1,144 DELEGATES. SO FAR, NO ONE IS EVEN CLOSE. AS OF LAST NIGHT, MITT ROMNEY LEADS WITH 135. NEWT GINGRICH HAS 32. RICK SANTORUM HAS 19. AND TEXAS CONGRESSMAN RON PAUL HAS EIGHT. ANOTHER 126 DELEGATES ARE NOT BOUND TO ANY ONE CANDIDATE, FOR A CLOSER LOOK AT THE CONTESTS AHEAD AND WHAT'S AT STAKE, WE'RE JOINED BY JOSH PUTNAM, POLITICAL SCIENCE PROFESSOR AT NORTH CAROLINA'S DAVIDSON UNIVERSITY. HE RUNS THE POLITICAL BLOG, "FRONTLOADING HQ," AND THOSE ARE HIS DELEGATE ESTIMATES. AND "NEWSHOUR" POLITICAL EDITOR CHRISTINA BELLANTONI. CHRISTINA, AFTER LAST NIGHT, AFTER SEEING WHAT ROMNEY DID IN ARIZONA AND MICHIGAN, IS IT SAFE TO CALL HIM THE FRONT-RUNNER AGAIN.

>> I THINK SO, YEAH. PARTICULARLY WHEN YOU LOOK AT THE MAP. IT'S VERY DIFFICULT FOR ANY OF THESE OTHER CANDIDATES TO REALLY FORGE A PATH FORWARD BECAUSE HE CAN COLLECT IN THIS SLOW BUILD TOWARD HAVING THAT MAGIC NUMBER, EVEN THOUGH IT COULD TAKE MONTHS AND MONTHS.

>> Ifill: BUT WINNING DELEGATES DOESN'T... WINNING ELECTIONS, AS HE DID YESTERDAY, DOESN'T NECESSARILY EQUAL WINNING DELEGATES. THERE'S A DISCONNECT THERE SOMEWHERE.

>> YEAH, THERE IS. AND I THINK THAT'S WHAT SUPERTUESDAY IS REALLY GOING TO TAKE A LOOK AT THAT. IT'S HOW MANY STATES, WHAT TYPES OF STATES IS HE ABLE TO WIN? CAN HE WIN IN OHIO, WHICH IS A VERY SIMILAR ELECTORATE TO MICHIGAN, WHICH HE WAS ABLE TO PULL OUT THIS VERY SMALL WIN. OR IS HE ABLE TO WIN ANY OF THESE SOUTHERN STATES? WILL HE EVEN COMPETE IN THE SOUTHERN STPHAEUTS WHAT POINT IS HE TRYING TO PROVE ABOUT HIS STRATEGY OTHER THE NEXT WEEK.

>> Ifill: JOSH PUTNAM IN NORTH CAROLINA, YOU KEEP TRACK OF THIS A LOT. TELL US HOW YOU ADD UP YOUR NUMBERS, HOW YOU KEEP TRACK OF WHICH STATES, WHICH DELEGATES WIN AND HOW AND WHAT DIFFERENCE IT MAKES AT THIS STAGE.

>> WELL OBVIOUSLY WE'RE VERY EARLY THE PROCESS RIGHT NOW. WE'RE... WE'VE BEEN STUCK IN BETWEEN THIS KIND OF MOMENTUM SORT OF CONTEST AND ONE WHERE WE'RE COUNTING DELEGATES AND IT'S BECOMING MORE AND MORE CLEAR THAT WE'RE AT THE... ON THE LATTER HALF OF THAT, FOCUSING ON THOSE DELEGATES. SO THEY'RE... WITHOUT GETTING TOO FAR DOWN INTO THE WEEDS HERE, WE'VE GOT A FEW DIFFERENT WAYS THAT WE CAN LOOK AT DELEGATES. ONE, WE'RE LOOKING AT THE ONES THAT ARE BOUND ACCORDING TO THE RULES, THE STATE PARTY RULES IN EACH INDIVIDUAL STATE. AND THAT'S MORE DEFINED IF PRIMARY STATES LEEK WHAT WE SAW LAST MIGHT OUT OF MICHIGAN AND ARIZONA. IT'S MORE CLEARLY DEFINED THAN WHAT WE'RE SEEING IN CAUCUS STATES WHERE THE RULES ARE LESS DEFINED AND, YOU KNOW, WHERE THE DISCREPANCY IN SOME OF THESE COUNTS LIE RIGHT NOW-- MINE VERSUS OTHERS. ADDED ON TO THIS IS SOMETHING SIMILAR TO WHAT WE SAW IN 2008 ON THE DEMOCRATIC SIDE, THE DISCUSSION ABOUT SUPERDELEGATES. OF COURSE, IN THE REPUBLICAN SIDE THEY'RE REFERRED TO AS AUTOMATIC DELEGATES. THERE ARE ONLY THREE IN EACH STATE. MOST OF THOSE THREE PER STATE ARE UNBOUND FREE TO CHOOSE WHICH EVER CANDIDATE THEY WANT TO. IN SOME STATES THEY'RE BOUND ACCORDING TO STATE PARTY RULES.

>> Ifill: FOR EXAMPLE, LAST NIGHT IN MICHIGAN IT WAS CLEAR BY THE END OF THE EVENING, ANYWAY, THAT MITT ROMNEY HAD WON BUT IT WASN'T CLEAR UNTIL ALMOST THE END OF THE DAY TODAY HOW MANY DELEGATES HE WON. AND NOW WE'RE HEARING 15 DELEGATES FOR HIM, 15 DELEGATES FOR SANTORUM. IS THAT BECAUSE THEY'RE APPORTION BID CONGRESSIONAL DISTRICT?

>> YES. AGAIN, SOMETHING THAT DIFFERS IN THE REPUBLICAN PARTY VERSUS THE DEMOCRATIC PART GEE THAT WE DON'T HAVE A FLAT OR UNIFORM PROPORTIONALITY ACROSS ALL STATES. IN THE REPUBLICAN SIDE IT'S SOMETHING THEY'VE LEFT UP TO THE STATE PARTIES TO DECIDE, HOW THEY WANT TO ALLOCATE THESE DELEGATES AND IN MICHIGAN LAST NIGHT WHAT WE SAW WAS SOME OF THEM WERE ALLOCATED, THE CONGRESSIONAL DISTRICT VOTE AND THAT WAS A WINNER-TAKE-ALL ALLOCATION, TWO PER DISTRICT. AND THEN THE REMAINING TWO DELEGATES THAT THEY HAD OUT OF THEIR PENALIZED 30 WERE PROPORTIONAL. THAT MITT ROMNEY GOT ONE AND RICK SANTORUM GOT THE OTHER. AND THAT'S WHAT WE SEE IN SEVERAL OTHER STATES.

>> Ifill: CHRISTINA, WE HEARD NEWT GINGRICH SAY TODAY "GEORGIA, IF YOU GIVE ME YOUR VOTES, I'LL HAVE THE MOST DELEGATES ON SUPERTUESDAY." WE HEARD RON PAUL SAY "HEY, WE'RE STILL COUNTING DEBT GHATS." ASSUMING THAT'S HOW THESE CANDIDATES ARE NOW PLOTTING THEIR STRATEGY ABOUT WHERE TO DO GO?

>> THAT'S EXACTLY WHAT THEY'RE DOING AND THE GINGRICH FOLKS HAVE A LOT RIDING ON GEORGIA. THEY THINK HE'LL DO WELL IN THE SOUTH, THEY'LL THINK HE CAN WIN OVER THESE CONSERVATIVE VOTERS. THEY'VE COMPARED IT TO A LOT TO SOUTH CAROLINA WHICH WAS HIS LAST REAL VICTORY, HIS ONLY VICTORY. THEY BASICALLY SEE IF HE CAN TAKE A BIG NUMBER IN GEORGIA HE MIGHT DO WINNER TAKE-ALL AND HAVE A HUGE DELEGATE PRIZE THERE. THE SANTORUM PEOPLE FEEL SAY THEY FEEL CONFIDENT IN GEORGIA. THEY THINK THEY CAN KEEP HIM UNDER THAT 50%, GINGRICH, AND GET A BUNCH OF DELEGATES THERE. THEN THEY'RE LOOKING AT TENNESSEE AND OKLAHOMA. THESE STATES THEY REALLY THINK THEY CAN AMASS DELEGATES AND THEY ALSO ARE ALL CONTESTING THESE CAUCUSES.

>> Ifill: SO WE SAW SANTORUM TODAY IN TENNESSEE, ROMNEY IN OHIO, WE SAW RON PAUL IN VIRGINIA AND NEWT GINGRICH IN GEORGIA. ARE THOSE BASICALLY THE FOUR STATES WE'RE WATCHING FOR THE NEXT WEEK?

>> OHIO IS THE BIGGEST TEST AND THE GINGRICH AND PAUL PEOPLE ARE CALLING IT A MITT/RICK REMATCH OF MICHIGAN. BUT IT'S A VERY IMPORTANT STATE. IT'S OBVIOUSLY A BATTLEGROUND STATE IN THE GENERAL ELECTION, A STATE THAT'S EQUIVALENT FOR SANTORUM TO WHAT ROMNEY'S MICHIGAN WAS. IT'S CLOSE TO PENNSYLVANIA, A LOT OF THE VOTERS THAT SHOULD GO WITH HIM, HE'S GOT A BIG LEAD THERE, WHAT'S GOING TO HAPPEN. BUT THESE OTHER STATES IN THE MIDDLE OR WHERE SOME OF THEM ARE GOING TO BE CONTESTING BUT I'D REALLY WATCH TENNESSEE AND GEORGIA THEN OKLAHOMA IS THE OTHER BIG PRIZE.

>> Ifill: JOSH PUTNAM, ALMOST SINCE THIS CAMPAIGN BEGAN WE STARTED RACING TO THE END, WHEN WOULD IT END? WHAT WE DON'T KNOW IS HOW LONG IT WILL TAKE TO GET TO THAT 1, 144 NUMBER. WHAT'S YOUR ESTIMATE?

>> WELL, I'D SAY IT'S PROBABLY ABOUT 515 ON MAY 15. THERE'S NO REAL GOOD ANSWER TO THAT. GIVEN THE FACT THAT WE'VE GOT A MUCH DIFFERENT CALENDAR IN 2012 RELATIVE TO WHAT WE SAW IN 2008 THAT WE'VE GOT A MUCH MORE EVENLY DISPERSED CALENDAR IN TERMS OF THE CONTEST, THIS IS LIKELY TO PLAY OUT UNTIL AT LEAST APRIL IF NOT BEYOND THEN.

>> Ifill: BECAUSE,... YOU'RE SAYING-- PICKING UP ON WHAT CHRISTINA SAID, THE STATES THESE CANDIDATES ARE FOCUSING ON DON'T NECESSARILY DELIVER DELEGATES THAT GETS THEM... THAT ALLOWS THEM TO SEW THINGS UP?

>> IT GETS BACK TO WHAT CHRISTINA SAID AT THE BEGINNING OF THE DISCUSSION HERE IS THAT WHAT WE'RE LOOKING AT IS JUST A VERY SLOW INCREMENTAL BUILD OF DELEGATES ACROSS THIS CONTEST AND IF THE WAY THE DELEGATES HAVE BEEN ALLOCATED THUS FAR PROJECTS ON TO THE REST OF THE CONTEST, MITT ROMNEY EVER SO GRADUALLY ADDS TO THAT TOTAL FROM WEEK TO WEEK. BUT IT TAKES US A WHILE TO GET TO THAT 1,144 NECESSARY TO WRAP UP THE NOMINATION.

>> Ifill: CHRISTINA, TODAY WE... JUST WATCHING THE WAY THE CAMPAIGN UNFOLDED POST-MICHIGAN, POST-ARIZONA, WE SAW THAT MITT ROMNEY IS NOT AT ALL LET UP ON RICK SANTORUM. HE'S LANDED ON HIM WITH ALL FEET TODAY, THEN WE HEARD THAT RICK SANTORUM RAISED $9 MILLION THIS MONTH. SO THIS FIGHT IS JUST BEGINNING.

>> IT REALLY IS. THAT'S WHERE ROMNEY'S RESOURCES DO ALLOW HIM TO JUST TOUCH ON ALL OF THESE SUPERTUESDAY STATES. WE'LL SEE RESULTS FROM TEN STATES NEXT WEEK. SO HE MIGHT DO SOME FLY AROUND. BUT SANTORUM HAVING THE MONEY TO COMPETE AND COUPLED WITH A SUPERPAC THAT HAS A MILLIONAIRE BEHIND IT, TWO MILLIONAIRES BEHIND IT HELPING HIM, HE MIGHT BE ABLE TO KEEP EVEN WITH ROMNEY IN THESE STATES SO THAT'S WHERE THE MONEY DOES MATTER AND GINGRICH, WE SHOULD ALWAYS POINT OUT, WOULDN'T EVEN BE IN THIS RACE IF IT WASN'T FOR HIS SUPERPAC STILL ABLE TO KEEP HIM IN FINANCIALLY.

>> Ifill: I'VE BEEN ON THOSE FLY-AROUNDS, THEY'RE NO FUN AT ALL. CHRISTINA BELLANTONI, JOSH PUTNAM, THANK YOU BOTH VERY MUCH.

>> Woodruff: NEXT, COMPANIES THAT ARE MAKING SOCIAL AND ENVIRONMENTAL CHANGE A PART OF THEIR LEGAL BUSINESS MISSION-- ONE THAT GOES BEYOND PROFITS. THE "NEWSHOUR'S" ECONOMICS CORRESPONDENT, PAUL SOLMAN, LOOKS AT WHAT'S BEHIND THE SMALL WAVE OF COMPANIES SIGNING ON. IT'S PART OF HIS ONGOING REPORTING: "MAKING SENSE OF FINANCIAL NEWS."

>> Reporter: CELEBRATING A NEW LAW IN NEW YORK STATE THAT WILL OFFICIALLY RECOGNIZE COMPANIES WITH A CONSCIENCE.

>> THERE'S NO REASON THAT YOU CAN'T CARE ABOUT THE WORLD AND ALSO CARE ABOUT YOUR OWN BUSINESS.

>> Reporter: THE FOLKS AT THE TRIBECA OFFICES OF NON-PROFIT "B" LAB ARE BEHIND THE LAW WHICH CREATES A NEW CORPORATE CLASS CALLED A BENEFIT CORPORATION. FIRMS THAT MAKE MONEY AND A POSITIVE IMPACT ON SOCIETY. SEVEN STATES HAVE ALREADY PASSED BENEFIT CORP LEGISLATION. "B" LAB COFOUNDER ANDREW KASSOY:

>> EXISTING CORPORATE LAW WAS BUILT FOR MAXIMIZATION OF SHAREHOLDER VALUE, THE LEGAL INNOVATION HERE IS THAT IDEA THAT THE DIRECTORS AND THE OFFICERS OF THE COMPANY ARE NOW PROTECTED TO BE ABLE TO CONSIDER A BROADER SET OF INTERESTS.

>> Reporter: THE LAW PROTECTS FIRMS THAT FILE AS BENEFIT CORPORATIONS FROM SHAREHOLDER LAWSUITS THAT COULD OTHERWISE CHARGE THEY DIDN'T MAXIMIZE PROFITS. "B" CORPS ARE LEGALLY MANDATED TO MAXIMIZE SOCIAL BENEFITS AS WELL. LONG BEFORE ANY LAWS WERE PASSED, KASSOY, ALONG WITH HIS FORMER STANFORD UNIVERSITY ROOMMATES, JAY COEN GILBERT AND BART HOULAHAN, CONCOCTED "B" LAB TO CERTIFY "B" CORPS, MAKING SURE THAT OMPANIES OFFICIALLY DOING GOOD ACTUALLY WERE.

>> EVERY COMPANY TODAY MARKETS ITSELF AS ONE OF THE GOOD GUYS. THE THING THAT "B" LAB DOES IS AS A NON-PROFIT IS DO A LOT OF THAT RESEARCH AND INDEPENDENT VERIFICATION ON BEHALF OF ALL THOSE CONSUMERS THAT WANT TO KNOW ABOUT THE COMPANY THAT STANDS BEHIND THE PRODUCT.

>> Reporter: "B" LAB RATES FIRMS ON HOW WELL THEY CARE FOR EMPLOYEES, THE ENVIRONMENT, THEY'RE COMMUNITY. IF THEY GET A SCORE OF 80 OR MORE OUT OF A POSSIBLE 200, THEY ARE CERTIFIED B CORPS AND CAN MARKET THEMSELVES AS SUCH. IN FIVE YEARS, SOME 500 COMPANIES HAVE BEEN CERTIFIED LIKE COUNTERTOP MAKER ICE STONE. ITS FACTORY IN THE BROOKLYN NAVY YARD DAY LIT TO SAVE ON ELECTRICITY. ITS PRODUCT MADE PARTLY OF GLASS DIVERTED FROM LANDFILLS. MADE USING RECYCLED WATER. ICE STONE'S WORKERS ARE PAID $15 AN HOUR MINIMUM IN A LOW-INCOME AREA TO DO ENVIRONMENTALLY FRIENDLY MANUFACTURING. C.E.O. DAL LAMAGNA FOUNDED, AND LATER SOLD, THE SOCIALLY RESPONSIBLE BATHROOM ACCESSORIZER TWEEZERMAN.

>> I WOULD ARGUE THIS IS EVEN BETTER FOR THE SHAREHOLDERS. FOR INSTANCE, I SOLD TWEEZERMAN FOR A LOT MORE MONEY THAN I WOULD HAVE SOLD IT HAD I OPERATED THE TRADITIONAL WAY, TO BE JUST AN EXPLOITATIVE OPERATOR.

>> Reporter: BUT LAMAGNA REALIZED FIRMS LIKE HIS NEEDED SOME PROTECTION WHEN HIS FRIENDS, BEN AND JERRY, HAD TO SELL THEIR ICONIC ICE CREAM COMPANY TO THE HIGHEST BIDDER FOR FEAR OF SHAREHOLDER SUITS.

>> THE "B" CORPORATION HAS ARRIVED TO GIVE US COVER, IN EFFECT; LEGAL COVER, SO THAT WE CAN OPERATE IN THIS WAY, WITHOUT HAVING SOME SHAREHOLDER SAYING, "HEY, WAIT A MINUTE. YOU CAN'T BE SELLING YOUR COMPANY FOR A DOLLAR LESS THAN THE MOST YOU CAN GET."

>> Reporter: AND, EVEN THE FOULEST OF THE FOWL ARE TREATED WELL HERE. WHAT'S THE OWL FOR?

>> THE OWLS GOT RID OF THE PIGEONS. WHEN I GOT HERE, THERE WERE 20 OR 30 PIGEONS IN THE FACTORY AND WE HAD TO GET RID OF THEM AND, YOU KNOW, WE'RE A "B" CORP SO WE'RE HUMANE! SO, I HUNG OWLS ALL OVER THE FACTORY. THE PIGEONS LINED UP AND THEY WALKED OUT THE DOOR.

>> Reporter: ICE STONE IS ONE KIND OF "B" CORP; REVOLUTION FOODS, ANOTHER. CO-FOUNDER KRISTIN RICHMOND:

>> WE'RE SERVING 120,000 HEALTHY MEALS A DAY, 80% OF WHICH ARE SERVED TO STUDENTS ON THE FREE AND REDUCED LUNCH PROGRAM.

>> Reporter: COOKS AT SEVEN CULINARY CENTERS AROUND THE COUNTRY PREPARE FRESH SCHOOL MEALS DAILY, USING NO ARTIFICIAL INGREDIENTS. WITH FRESH FRUIT AND VEGETABLES GALORE. EACH MORNING, THE MEALS ARE TRUCKED TO SCHOOLS LIKE POTOMAC LIGHTHOUSE IN NORTHEAST D.C. WHERE KIDS GET LOW-FAT, LOW-CAL ALTERNATIVES TO TODAY'S TRADITIONAL FARE. THOUGH THIS DAYS HEALTH FOOD WASN'T INSTANTLY RECOGNIZABLE.

>> MILK, BUTTER, SQUASH?

>> UH, SQUISH.

>> WE HAD PASTA, AND IT WAS REALLY GOOD, AND THE BUTTERSCOTCH. IT WAS GOOD. I ATE SOME OF IT.

>> Reporter: THE MYSTERY VEG? BUTTERNUT SQUASH. KHALA VALENTINE SAID SHE KNEW THE VALUE OF EATING WELL.

>> YOU WANT TO KEEP HEALTHY BECAUSE YOU DON'T WANT TO GET SICK BECAUSE YOU'RE EATING ALL THOSE FATTY FOODS AND DIE. SO THAT'S WHY YOU SHOULD EAT HEALTHY.

>> Reporter: FOR THE "B" CORP VISION TO BE LONG-LASTING, IT MAY DEPEND ON YOUNG PEOPLE STARTING NEW BUSINESSES EMBRACING IT. WARBY PARKER, FOR INSTANCE, A HIP EYEGLASS MAKER IN MANHATTAN'S SOHO THAT'S BROKEN THE BIG COMPANY STRANGLEHOLD ON THE PRESCRIPTION MARKET, SELLING DESIGNER SPECS FOR $95. CO-FOUNDER NEIL BLUMENTHAL:

>> THE DIRTY LITTLE SECRET IN THE EYEWEAR INDUSTRY IS THAT GLASSES AREN'T THAT EXPENSIVE TO MANUFACTURE. THE POWERS CONCENTRATED IN A FEW LARGE COMPANIES ARE KEEPING PRICES ARTIFICIALLY HIGH. AND WE THOUGHT THAT WE COULD COME IN, UNDERCUT THEM, JUST BY DOING IT SMARTER. WE THOUGHT THAT WAS AN INHERENT GOOD TO TRANSFER BILLIONS OF DOLLARS FROM THESE LARGE MULTINATIONAL CORPORATIONS TO NORMAL PEOPLE.

>> Reporter: WARBY PARKER NOW HAS A STAFF OF 50. THEY BUY CARBON CREDITS TO OFFSET THEIR POWER USE, KEEP AN EAGLE EYE ON CUSTOMER SATISFACTION. BUT PERHAPS THE MOST APPEALING ANGLE HERE? THE FIRM DONATES PRESCRIPTION EYEWEAR THROUGHOUT THE DEVELOPING WORLD. CO-FOUNDER DAVE GILBOA:

>> WE HAVE A BUY A PAIR, GIVE A PAIR PROGRAM. FOR EVERY PAIR OF GLASSES THAT WE SELL, WE DISTRIBUTE A PAIR TO SOMEONE IN NEED.

>> Reporter: AS FOR THE DAUNTING SELECTION OF FASHIONABLE FRAMES... WHAT WOULD I BE SAYING IF I WERE WEARING THESE?

>> YOU MIGHT BE SAYING THAT YOU'RE A HIPSTER FROM WILLIAMSBURG.

>> Reporter: A HIPSTER FROM WILLIAMSBURG, BROOKLYN?

>> YEAH, WE'RE NOT SURE IF THESE ARE THE EXACT RIGHT FRAME FOR YOU.

>> Reporter: AND THIS LOOK WOULD BE?

>> THIS WOULD BE INTELLECTUAL, REPORTER AT A WORLD FAMOUS TV SHOW.

>> Reporter: YEAH, RIGHT! LOOK, LIKE ALL "B" CORPS, THESE GUYS NEED TO HAWK THEIR WARES IF THEY'RE TO DO ANYTHING ELSE, SAYS "B" LAB CO-FOUNDER JAY COEN GILBERT.

>> WHAT "B" CORPS ARE DOING IS THEY'RE SAYING, "WE'RE GOING TO REDEFINE WHAT IT MEANS TO BE SUCCESSFUL IN BUSINESS. WE'RE PERFECTLY HAPPY TO MAKE MONEY. WE RECOGNIZE THAT THAT'S IMPORTANT, BUT WE'RE NOT HERE TO MAKE MONEY. WE'RE HERE TO MAKE A DIFFERENCE AND THE MONEY THAT WE MAKE HELPS FUEL THE DIFFERENCE WE CAN MAKE.

>> Reporter: BUT WAIT. SOCIALLY RESPONSIBLE FIRMS HAVE BEEN ABOUT TO MAKE THE DIFFERENCE MY ENTIRE CAREER. SO WHY IS THIS YEAR DIFFERENT? "B" LAB CO-FOUNDER BART HOULAHAN:

>> YOU HAVE ALL THE ELEMENTS OF A MARKET PLACE, YET IT WASN'T QUITE ACCELERATING AND THEN YOU PUT ON TOP OF IT THE FINANCIAL COLLAPSE, WHEN THE BROADER PUBLIC STARTED TO REALLY DOUBT BUSINESS AND YOU CREATE A POSITIVE ALTERNATIVE. ALL OF A SUDDEN, WE'RE PREACHING TO THE CHOIR.

>> Reporter: BACK AT THE "B" LAB PARTY, LAWYER ALLEN BROMBERGER WAS SKEPTICAL THAT SOCIAL MINDEDNESS SPELLS SUCCESS.

>> IF YOU HAVE TO PAY 39 CENTS MORE FOR WIDGETS TO BUY FROM A COMPANY THAT DOESN'T USE CHILD LABOR, YOU'RE NOT GOING TO BE ABLE TO HAVE THE CHEAPEST PRICE ON THE MARKETPLACE NECESSARILY. AND ULTIMATELY THIS STUFF IS ALL GOING TO BE DECIDED IN THE MARKET.

>> Reporter: SO THE MOVEMENT COULD BE SUCCESSFUL.

>> IT COULD WELL BE THAT IN TEN YEARS THIS IS JUST A STANDARD PART OF DOING BUSINESS IN AMERICA, AND NOBODY THINKS ANYTHING SPECIAL ABOUT IT.

>> Reporter: OR IT COULD BE.

>> OR IT COULD BE A FAD THAT CAME AND WENT. IT COULD BE THE MINISKIRT OF THE 2012. WHO KNOWS?

>> Reporter: AT THE MOMENT, THOUGH, THE MOVEMENT LOOKS LIVELY ENOUGH, WITH BILLS MAKING BUSINESS WITH A CONSCIENCE LEGAL, PENDING FROM COLORADO TO NORTH CAROLINA.

>> Woodruff: RUSSIA'S PRIME MINISTER VLADIMIR PUTIN, WHO IS RUNNING FOR PRESIDENT IN THIS COMING SUNDAY'S ELECTION, SAID HIS ENEMIES WERE PLANNING DIRTY TRICKS, INCLUDING BALLOT STUFFING AND EVEN MURDER IN AN ATTEMPT TO MAR THE VOTE'S OUTCOME. MARGARET WARNER IS IN MOSCOW AND SPOKE WITH ONE OF RUSSIA'S LEADING ACTIVISTS. THOUSANDS OF RUSSIANS TOOK TO THE STREETS PROTESTING WHAT THEY CHARGE WAS FRAUD IN WEEKEND PARLIAMENTARY ELECTIONS. AMONG THE LEADERS, 35-YEAR-OLD LAWYER AND ANTICORRUPTION BLOGGER ALEXEI NAVALNY. HE COINED THE NOW POPULAR DESCRIPTION OF PRIME MINISTER HAVE HAD A HERE PUTIN'S UNITED RUSSIA PARTY AS THE PARTY OF CROOKS AND THIEVES. NAVALNY AND OTHERS WERE ARRESTED ON THE FIRST DAY OF THOSE DEMONSTRATIONS, BUT BY CHRISTMAS EVE HE WAS OUT AND SPEAKING TO AN EVEN BIGGER ANTI-PUTIN RALLY. ALL THIS HAS BROUGHT WHITE-HOT FOCUS ON THIS COMING SUNDAY'S PRESIDENTIAL ELECTION AS PUTIN SEEKS TO RECLAIM THE TOP OFFICE. THOUGH POLLS SHOW NAVALNY IS THE MOST POPULAR OF THE OPPOSITION FIGURES, HE'S NOT ON THE BALLOT, BUT HE STAYED ACTIVE WITH A CAMPAIGN BRANDING PUTIN AS A CORRUPT AUTOCRAT WITH HIS WIDELY RED LIVE-JOURNAL BLOG OF GOVERNMENT CORRUPTION EXPOSEEÉS AND WITH A NEW PROJECT TO ENLIST VOLUNTEERS TO MONITOR POLLING PLACES THIS SUNDAY. I SPOKE WITH ALEXEI NAVALNY AT HIS OFFICE IN MOSCOW. THANK YOU FOR JOINING US. YOU WERE AT A RALLY IN ST. PETERSBURG AND YOU SAID THESE ARE NOT ELECTIONS, THIS IS THE REAPPOINTMENT OF PUTIN. WHAT DID YOU MEAN?

>> (translated): LITERALLY IT MEANS WHAT I SAID. THIS IS NOT AN ELECTION. THIS PROCEDURE IS AIMED AT ONLY ONE THING, THE APPOINTMENT OF PRIME MINISTER PUTIN ONCE AGAIN THE PRESIDENT, SEEMINGLY FOR LIFE.

>> Warner: FOR LIFE? IT'S JUST A SIX-YEAR TERM.

>> (translated): PUTIN HAS BEEN IN POWER SINCE '99, FROM THE MOMENT WHEN HE WAS APPOINTED ACTING PRIME MINISTER BY BORIS YELTSIN. NOW, FORMALLY HE'S NOT THE PRESIDENT BUT IN FACT HE'S A KIND OF CZAR, AUTOCRAT, UNFORTUNATELY HE CAN NOT IMAGINE FOR HIMSELF ANOTHER WAY OF EXISTENCE. ALL THE GHOSTS OF QADDAFI ARE HAUNTING HIM AND HE KNOWS EITHER HE WILL BE THE PRESIDENT OR SOMETHING UNFORTUNATE WILL HAPPEN TO HIM.

>> Warner: STILL, WHAT DOES IT SAY ABOUT RUSSIAN SOCIETY, DO YOU THINK, THAT YOU'VE HAD THIS INCREDIBLE OPPOSITION MOVEMENT ARISE IN, AT LEAST PUBLICLY, JUST THREE MONTHS.

>> (translated): SIX MONTHS AGO IF YOU HAD EVER ASKED ME WHETHER THIS WOULD HAPPEN IN THREE MONTHS I WOULD HAVE BEEN VERY SKEPTICAL ABOUT IT. NEVERTHELESS, IT HAPPENED SUDDENLY AND IT WASN'T ORGANIZED BY THE RUSSIAN OPPOSITION. PUTIN DID THIS. PEOPLE TOOK TO THE STREETS IN THEIR PROTEST TO AN OPEN AND PUBLIC HUMILIATION WHICH WAS IMPOSSIBLE TO ENDURE. TO VLADIMIR PUTIN TO HAVE FALSIFY IT HAD ELECTIONS SO PUBLICLY IT WAS IMPOSSIBLE TO IGNORE.

>> Warner: IS THERE AN IRONY HERE THAT THE 12 YEARS OF PUTIN AND THE ECONOMIC GROWTH THAT OCCURRED HAS HELPED CREATE THE VERY CLASS THAT WANTS TO GET RID OF HIM?

>> PUTIN CLAIMS CREDIT FOR ECONOMIC GROWTH AND ARGUING AFTER THE COLLAPSE OF THE '90s, NOW WE HAVE SEEN THE SO-CALLED PUTIN STABILITY. HOWEVER COMPARING RUSSIA WITH NEIGHBORING COUNTRIES WE SEE OTHER FORMER SOVIET UNION COUNTRIES GREW STRONGER SO PUTIN'S TIME IS A TIME OF LOST OPPORTUNITIES. RUSSIA HAS ENORMOUS GAS, OIL AND ENERGY RESOURCES AND PRICES ARE VERY HIGH. YES, PART OF THIS MONEY REMAINS IN THE COUNTRY AND LED TO THE CREATION OF THE MIDDLE-CLASS WHICH NOW TRIES TO GET RID OF PUTIN BECAUSE THEY UNDERSTAND THAT MOST OF THE MONEY WAS SIMPLY STOLEN BY HIM AND HIS FRIENDS.

>> Warner: SO WHAT HAVE YOU ACHIEVED WITH THIS SO FAR? I MEAN, EVEN IF, AS YOU SAY, IT'S A FOREGONE CONCLUSION PUTIN WILL WIN.

>> WE SEE THAT PUTIN AND MEDVEDEV HAVE ALREADY ANNOUNCED POLITICAL REFORMS AND WE HAVE REALIZED THAT THERE IS NO HUGE GAP BETWEEN THE POLITICAL ACTIVISTS AND THE PUBLIC. THOUSANDS OF PEOPLE CAME OUT TO THE STREETS AND WE FOUND THAT IN RUSSIA THERE IS THIS CRITICAL MASS OF PEOPLE THAT JUST WILL NOT ALLOW VLADIMIR PUTIN TO TREAT THEM AS HE HAS FOR THE LAST 12 YEARS.

>> Warner: PRIME MINISTER PUTIN AND HIS PARTY, THE KREMLIN, HAVE ALL ACCUSED THE WEST OF BEING BEHIND PROTEST MOVEMENTS, OF BEING BEHIND YOU. SPECIFICALLY THE U.S., THE STATE DEPARTMENT, THE C.I.A. WHAT DO YOU SAY TO THAT?

>> (translated): I'M QUITE AN ORDINARY CITIZEN WHO LIVES ON THE OUTSKIRTS OF MOSCOW .N MY CHILDREN GO TO A REGULAR MOSCOW SCHOOL AND KINDERGARTEN. MY LIFE IS COMPLETELY TRANSPARENT WHICH IS NOT THE CASE FOR PUTIN'S OFFICIALS WHOSE CHILDREN LIVE ABROAD, WHO HAVE ACCOUNTS IN SWITZERLAND, THE UNITED STATES AND GREAT BRITAIN. SO THE QUESTION ARISES: WHO IS MORE CONNECTED WITH THE WEST? THE OPPOSITION OR RUSSIAN CORRUPT RULING CLASS?

>> Warner: SO WHEN SUNDAY HAPPENS AND IF THE RESULTS ARE AS EVERYONE EXPECTS, ARE YOU PREPARED TO EXPECT THEM?

>> (translated): SINCE WE DO NOT RECOGNIZE THE ELECTION, WE WILL NOT RECOGNIZE THE ELECTION RESULTS. WE ARE QUITE CLEAR THAT ON MARCH 5, PUTIN WILL DECLARE HIMSELF THE PRESIDENT OF RUSSIA. IN FACT, HE WOULD CALL HIMSELF A CZAR AND AN EMPEROR. WE WILL NOT ACCEPT THIS AND WE WILL CONTINUE TO DEMAND POLITICAL REFORMS, NEW PARLIAMENTARY ELECTIONS WITHIN A YEAR AND NEW PRESIDENTIAL ELECTIONS WITHIN TWO YEARS.

>> Warner: SO DOES THAT MEAN RETURNING TO THE STREETS?

>> (translated): THE RUSSIAN OPPOSITION GROUPS HAVE ALREADY STATED THAT THEY WILL ENCOURAGE PEOPLE TO GO TO THE STREETS ON MARCH 5 AROUND BEYOND. I DO NOT KNOW WHAT THE SCALE OF THE PROTEST WILL BE BUT THE FACT THAT IT WILL CONTINUE IS QUITE OBVIOUS. IT DOESN'T MATTER HOW THEY COUNT THE VOTES BECAUSE ALL CANDIDATES SHOULD HAVE BEEN ABLE TO PARTICIPATE IN THE ELECTIONS.

>> Warner: ARE YOU SAYING THE PROTEST MOVEMENT JUST STAYS OUT IN THE STREETS OR DO YOU HAVE TO FORM A POLITICAL PARTY YOURSELF AND GET INTO THE PROCESS?

>> (translated): WE SHOULD BUILD UP OUR POLITICAL PROTESTS TO FORCE HIM TO DECLARE NEW ELECTIONS. OUR GOAL IS VERY SIMPLE AND IT ALLOWS US TO UNITE AGAINST THIS OPPONENT. WE WANT VERY SIMPLE THINGS: POLITICAL REFORM AND NEW ELECTIONS. POLITICAL REFORM MEANS THAT ALL THOSE WHO PREVIOUSLY WERE NOT ALLOWED TO TAKE PART IN THE ELECTIONS MUST BE APPROVED.

>> Warner: IF HE WERE TO LISTEN TO WHAT YOU'RE SAYING AND WHAT PEOPLE IN N THE STREET ARE SAYING, HOW WOULD YOU WANT HIM TO GOVERN DIFFERENTFULLY THE NEXT SIX YEARS? IS THERE A NERIO IN WHICH HE COULD LEAD REFORM?

>> (translated): THAT I BELIEVE SUCH A SCENARIO EXISTS AND I THINK THAT PUTIN, EVEN THOUGH HE'S A VERY CORRUPTED POLITICIAN, A GREEDY POLITICIAN AND A VERY POWER-HUNGARY POLITICIAN, HE'S A SMART, FLEXIBLE PERSON AND IF HE MAKES CERTAIN CHANGES WE WILL BE ABLE TO CARRY OUT THE PEACEFUL TRANSITION OF POWER, AVOID ANY VIOLENCE AND GUARANTEE FREEDOM AND SECURITY FOR VLADIMIR PUTIN. HE SHOULD TAKE A RISK AND GO FOR COMPETITIVE ELECTIONS.

>> Warner: YOU SAID SOMETHING ABOUT GUARANTEEING HIS OWN SAFETY. DO YOU MEAN HIS SAFETY FROM PROSECUTION?

>> (translated): YES, OF COURSE. NOW, WE HAVE A LOT OF EVIDENCE THAT VLADIMIR PUTIN AND HIS TEAM WERE PERSONALLY INVOLVED IN CRIMINAL ACTS AND, OF COURSE, HE SHOULD BE PROSECUTED. IN THIS REGARD, THERE IS CONSENSUS IN THE OPPOSITION FOR THE SAKE OF PEACEFUL TRANSFER OF POWER IN THE COUNTRY VLADIMIR PUTIN PERSONALLY AND HIS FAMILY SHOULD GET SOME KIND OF FREEDOM GUARANTEES.

>> Warner: DO YOU THINK THAT HE COULD INSTITUTE REFORMS AND ALSO WEED OUT CORRUPTION FROM WITHIN HIS SYSTEM?

>> (translated): UNFORTUNATELY, THIS IS IMPOSSIBLE BECAUSE CORRUPTION HAS BECOME THE CORE ON WHICH HE BUILT HIS POLITICAL POWER. IN HIS OPINION, CORRUPTION IS A VERY EFFICIENT WAY OF MANAGEMENT. FOR HIM, THERE IS NO PROBLEM IN HIS MINISTERS BEING BILLIONAIRES. THERE IS NO PROBLEM IN HIS GOVERNMENT BEING SO CORRUPT THAT EVERYBODY IN THE COUNTRY KNOWS ABOUT IT.

>> Warner: NOW, IF HE TAKES THE OTHER COURSE, HE WINS 60% OF THE VOTE AND HE DECIDES TO JUST CLAMP DOWN AND CONTINUE BUSINESS AS USUAL, THEN WHAT?

>> (translated): 100,000 PEOPLE IN THE STREETS OF MOSCOW. OF COURSE HE CAN TRY TO QUELL THE PROTESTS BY FORCE BUT REMEMBER THAT THIS SCENARIO, THIS SO-CALLED POWER SCENARIO, WAS ATTEMPTED ON DECEMBER 5 LAST YEAR WHEN HUNDREDS OF PEOPLE WERE ARRESTED, INCLUDING ME, AS WELL AS ON DECEMBER 6 WHEN HUNDREDS OF PEOPLE WERE BEATEN. BUT THE RESULT WAS THAT HUNDREDS OF THOUSANDS MORE PEOPLE TOOK TO THE STREETS.

>> Warner: AND ARE YOU PREPARED TO LEAD THOSE PROTESTS AS FAR AS THEY NEED TO GO?

>> (translated): ABSOLUTELY.

>> Warner: ALEXEI NAVALNY, THANK YOU VERY MUCH.

>> Ifill: FINALLY TONIGHT, THE CONTINUING FALLOUT AND WIDENING SCOPE OF INVESTIGATIONS INTO THE MURDOCH NEWSPAPER EMPIRE IN ENGLAND. IT'S THE SUBJECT OF INTERNATIONAL ATTENTION TODAY AFTER ANOTHER LEADERSHIP SHAKEUP TODAY. 39-YEAR-OLD JAMES MURDOCH HAS BEEN UNDER PRESSURE SINCE THE PHONE-HACKING SCANDAL ERUPTED IN BRITAIN LAST SUMMER. NOW, THE YOUNGEST SON OF RUPERT MURDOCH IS STEPPING DOWN AS EXECUTIVE CHAIRMAN OF NEWS INTERNATIONAL-- THE BRITISH NEWSPAPER DIVISION OF HIS FATHER'S MEDIA CONGLOMERATE. JAMES MURDOCH OVERSAW "NEWS OF THE WORLD," THE TABLOID ENGULFED -- AND ULTIMATELY DRIVEN OUT OF BUSINESS-- BY REVELATIONS THAT JOURNALISTS REGULARLY HACKED VOICEMAILS OF CELEBRITIES, POLITICIANS AND EVEN CRIME VICTIMS. MURDOCH AND HIS DEPUTIES ALL SAID THEY HAD NO IDEA WHAT WAS GOING ON.

>> I FEEL REGRET. CLEARLY, THE PRACTICES OF CERTAIN INDIVIDUALS DID NOT LIVE UP TO THE STANDARDS AND QUALITY OF JOURNALISM THAT WE BELIEVE IN, AND THAT I BELIEVE IN, AND THAT THIS COMPANY BELIEVES IN.

>> Ifill: BUT THE DISCLOSURES KEPT COMING. MURDOCH TWICE CHANGED HIS STORY ABOUT WHAT HE KNEW AND WHEN. SOME LAWMAKERS WERE LEFT INCREDULOUS AT THIS PARLIAMENTARY HEARING IN NOVEMBER.

>> MR. MURDOCH, YOU MUST BE THE FIRST MAFIA BOSS IN HISTORY WHO DIDN'T KNOW HE WAS RUNNING A CRIMINAL ENTERPRISE.

>> MR. WATSON, PLEASE. I THINK THAT'S INAPPROPRIATE, MR. CHAIRMAN.

>> Ifill: THE GROWING OUTCRY LED THE MURDOCHS TO SHUT DOWN "NEWS OF THE WORLD," AFTER 168 YEARS IN BUSINESS. MORE THAN A DOZEN OF ITS JOURNALISTS WERE ARRESTED AND TWO TOP EXECUTIVES RESIGNED, ALONG WITH LONDON'S POLICE COMMISSIONER, AS THE FALLOUT SPREAD. TWO DAYS AGO, THE POLICE OFFICIAL HEADING THREE CRIMINAL INVESTIGATIONS DETAILED A CULTURE OF ILLEGAL PAYMENTS FROM JOURNALISTS TO THOSE IN AUTHORITY.

>> PAYMENTS WERE BEING MADE TO PUBLIC OFFICIALS WHO WERE IN ALL AREAS OF PUBLIC LIFE. AND I'VE SAID THAT THE CURRENT ASSESSMENT REVEALS A NETWORK OF CORRUPTED OFFICIALS.

>> Ifill: THE COMPANY SAID TODAY JAMES MURDOCH, WHO REMAINS UNDER INVESTIGATION, WILL NOW SHIFT HIS FOCUS TO THE FAMILY'S TELEVISION BUSINESS. AND LAST WEEKEND, RUPERT MURDOCH LAUNCHED A NEW SUNDAY EDITION OF HIS LONDON NEWSPAPER "THE SUN"-- TO FILL THE VOID LEFT BY "NEWS OF THE WORLD'S" DEMISE. FOR MORE ON ALL THIS, WE TURN TO NED TEMKO, WHO WRITES FOR THE "LONDON OBSERVER." WELCOME BACK, NED. WHAT DO WE KNOW AT THIS HOUR ABOUT WHY JAMES MURDOCH STEPPED DOWN?

>> WELL, THE OFFICIAL VERSION IS HE HAS STEPPED DOWN TO CONCENTRATE ON THE TELEVISION SIDE OF MR. MURDOCH'S BUSINESS BACK IN THE UNITED STATES. BUT I DON'T THINK ANYONE HAS ANY DOUBT THAT IT ALSO REFLECTS THE STEADILY-BUILDING PRESSURE ON JAMES MURDOCH THE SON PERSONALLY, ON RUPERT MURDOCH, ON THE ENTIRE ENTERPRISE BY THESE GROWING CIRCLES OF ALLEGATIONS ABOUT ALL SORTS OF ETHICALLY QUESTIONABLE BEHAVIOR HERE IN BRITAIN.

>> Ifill: YOU TALK ABOUT ETHICALLY QUESTIONABLE BEHAVIOR, A LOT OF FALLOUT FROM THAT JUST IN THE PAST SIX MONTHS. DO WE KNOW WHETHER JAMES MURDOCH HIMSELF HAS BEEN OR IS LIKELY TO BE IMPLICATED DIRECTLY IN THESE SCHEMES?

>> I THINK THE LIKELIHOOD IS NO. CERTAINLY IN TERMS OF BEING PERSONALLY INVOLVED IN THINGS LIKE THE PHONE HACKING, THESE ALLEGED... IN FACT NOW RECOGNIZED CORRUPT PAYMENTS TO POLICE AND OTHER OFFICIALS, THAT DIDN'T HAPPEN ON JAMES MURDOCH'S WATCH. HE WASN'T IN CHARGE IN THE TIME. IT'S A LITTLE LIKE WATERGATE. THE ISSUE ISN'T THE CRIMES OR THE ALLEGED CRIMES IT'S THE ALLEGED COVERUP OR THE QUESTIONS OF BASICALLY WHO KNEW WHAT WHEN.

>> Ifill: TAKE HIM OUT OF THE SUCCESSION LOOP? IS IT ASSUMED BY MOVING TO THIS JOB-- WHICH NO ONE IS CERTAIN WHAT IT IS-- THAT HE IS NO LONGER IN LINE TO SUCCEED HIS FATHER, WHO'S 81 YEARS OLD?

>> I THINK THE WHOLE LEADERSHIP QUESTION IS NOW IN FLUX. HE WAS KIND OF THE CROWN PRINCE. WHEN HIS OLDER BROTHER REMOVED HIMSELF AND BASICALLY BASED HIMSELF IN AUSTRALIA A FEW YEARS AGO, IT WAS ASSUMED THAT JAMES MURDOCH EVENTUALLY WOULD TAKE OVER. TWO THINGS ARE NOW CLEAR: ONE, JAMES MURDOCH HAS REMOVED HIMSELF FROM THE U.K. OPERATION WHICH IN FINANCIAL TERMS IS A VERY, VERY SMALL BIT OF THE COMPANY. AND SECOND WIL OF ALL, THAT DESE RUPERT MURDOCH'S AGE, HE'S VERY MUCH GOT HIS HAND ON THE TILLER STILL. HE'S VERY ALERT. HE'S... IT WAS HE AFTER ALL WHO WAS THE MAIN FACE OF THIS NEW SUNDAY EDITION OF HIS "SUN REQUESTS NEWSPAPER WHICH LAUNCHED A WEEK AGO AND IN JAMES MURDOCH'S OWN STATEMENT TODAY IT WAS CLEAR THAT RUPERT MURDOCH WILL REMAIN INVOLVED IN THE U.K. OPERATION.

>> Ifill: NOW, SINCE LAST WE TALKED ABOUT THIS STORY THERE HAVE BEEN ARRESTS, THERE HAVE BEEN NO DISCLOSURES ABOUT HUNDREDS OF THOUSANDS OF DOLLARS IN PAYOFFS TO PUBLIC OFFICIALS. IS THERE ANY CLARITY YET ABOUT WHETHER THIS KIND OF BEHAVIOR WAS BUSINESS AS USUAL OR WHETHER IT WAS ILLEGAL? WHETHER IT WAS A LINE HERE THAT WAS CROSSED.

>> SADLY, I THINK BOTH ARE TRUE. IT DOES APPEAR TO HAVE BEEN BUSINESS AS USUAL AND, INDEED, JUST A COUPLE OF DAYS AGO AT THE JUDGE-LED INQUIRY, ONE OF THREE INQUIRIES THAT IS UNDER WAY INTO PRACTICES IN THE PRESS AND PRETTY MUCH HAS CONCLUDED THAT THERE WAS A LOT OF MISBEHAVIOR GOING ON. SUE ACRES, THE POLICE OFFICER IN CHARGE, SAID THAT THERE WAS A WIDE CULTURE OF PAYMENTS, FOR INSTANCE, NOT ONLY TO POLICE OFFICERS WHICH WAS ASSUMED BUT TO A WHOLE RANGE OF GOVERNMENT OFFICIALS. SO IT WAS BOTH WIDESPREAD AND IN A LOT OF WAYS IF ALL THESE ALLEGATIONS ARE TRUE OBVIOUSLY AGAINST THE LAW.

>> Ifill: YOU SAY THERE ARE THREE SEPARATE INVESTIGATIONS GOING ON. CAN YOU DESCRIBE WHAT THEY ARE?

>> YEAH, THE FIRST ONE IS AN INQUIRY SET UP BY A COMMITTEE IN THE HOUSE OF COMMONS. AND THAT WAS THE FIRST ONE. THEN THERE IS A... AN ONGOING INQUIRY SET UP BY THE GOVERNMENT AND CHAIRED BY A SENIOR JUDGE WHICH HAS BEEN HOLDING DAILY HEARINGS AND HAS ENSURED THAT MUCH AS NO DOUBT NEWS INTERNATIONAL WISHES ALL THIS WOULD GO QUIET FOR A WHILE WE GET ALMOST DAILY REVELATIONS. THEN THE THIRD INQUIRY IS A POLICE INQUIRY. IN 2006, THE POLICE LOOKED INTO THIS AND DID VERY LITTLE, BUT NOW IT'S CLEAR THE POLICE ARE VERY SERIOUS ABOUT IT, NOT ONLY IN TERMS OF UNCOVERING WHAT WAS GOING ON AT THESE VARIOUS NEWSPAPERS BUT MORE DISTURBINGLY FOR THE POLICE THE DEGREE TO WHICH POLICE OFFICERS AND... AS THE HA HEAD OF THE INVESTIGATION SAID, OTHER MEMBERS OF GOVERNMENT MAY HAVE BEEN PAID OFF ROUTINELY FOR STORIES BY THE SON OR THE... THE "SUN" OR THE "NEWS OF THE WORLD" WHICH WERE THE TWO TABLOID AND ARE THE TWO TABLOID TITLES OF RAOURPLT IN BRITAIN.

>> Ifill: AND AS YOU SAID, THIS IS DAILY HEADLINES, STILL, AFTER ALL THIS TIME IN THE MIDDLE OF ALL THIS RAOURPLT LAUNCHES AN EXPANDED PUBLICATION "THE SUN" ON SUNDAY. HOW HAS THAT BEEN RECEIVED SO FAR?

>> WELL, THIS REPLACES ESSENTIALLY THE "NEWS OF THE WORLD" WHICH WAS WERE WHERE THE FIRST ALLEGATIONS WERE TARGETED IN WHICH HE CLOSED HOPING IT WOULD KIND OF BRING THIS UNDER CONTROL. IT'S BEEN RECEIVED, I SUPPOSE, WITH MIXED REVIEWS. COMMERCIALLY IT SEEMS LIKELY TO MAKE A LOT OF MONEY BECAUSE IT'S BASICALLY A DAILY EDITION OF THE "SUN" WHICH IS THE LARGEST SELLING NEWSPAPER IN BRITAIN. IN TERMS OF ITS EDITORIAL CLOUT IT'S REALLY UP IN THE AIR BECAUSE PARTLY IN ORDER TO DEMONSTRATE HOW THE CULTURE AT NEWS INTERNATIONAL HAS CHANGED, RAOURPLT ANRUPERT MURDOCH AND OE BEEN SAYING IT WILL BE LESS SALACIOUS, SENSATIONAL AND HE'S BEEN AS GOOD AS HIS WORD. THE FIRST EDITION WAS FAIRLY TAME AND THAT'S THE GOOD NEWS, I SUPPOSE, FOR THE IMAGE OF NEWS INTERNATIONAL. THE MORE COMPLICATED THING IS A LOT OF PEOPLE BOUGHT THE NEWS INTERNATIONAL FOR THE SENSATION.

>> Ifill: NED TEMKO OF THE LONDON "OBSERVER," THANK YOU.

>> Woodruff: AGAIN, THE MAJOR DEVELOPMENTS OF THE DAY: NORTH KOREA AGREED TO A TEMPORARY HALT IN NUCLEAR TESTING, URANIUM ENRICHMENT AND MISSILE LAUNCHES AND TO ALLOW FOREIGN MONITORING OF ITS MAIN REACTOR COMPLEX. AT LEAST NINE PEOPLE WERE KILLED IN THE MIDWEST AS AN OUTBREAK OF TORNADOES RIPPED THROUGH THE REGION. AND THE REPUBLICAN PRESIDENTIAL CANDIDATES MOVED ON TO THE TEN SUPER TUESDAY STATES AFTER MITT ROMNEY WON IN ARIZONA AND MICHIGAN. AND TO HARI SREENIVASAN FOR WHAT'S ON THE "NEWSHOUR" ONLINE. HARI?

>> Sreenivasan: ALSO WITH THE END OF AMERICAN HEART MONTH, WE EXAMINE SOME COMMON MISPERCEPTIONS ABOUT CAUSES AND TREATMENTS OF CARDIAC PROBLEMS. THAT'S ON OUR HEALTH PAGE. ON OUR SOCIAL ENTREPRENEURSHIP PAGE, FIND A PROFILE OF THE PLAYING FOR CHANGE FOUNDATION-- A GROUP INSPIRED BY STREET MUSICIANS THAT IS HELPING PROVIDE MUSIC EDUCATION AROUND THE WORLD. ALL THAT AND MORE IS ON OUR WEB SITE: newshour.pbs.org. GWEN?

>> Ifill: AND THAT'S THE "NEWSHOUR" FOR TONIGHT. ON THURSDAY, WE'LL TAKE A LOOK AT ELECTIONS AND SOCIAL MEDIA. I'M GWEN IFILL.

>> Woodruff: AND I'M JUDY WOODRUFF. WE'LL SEE YOU ONLINE AND AGAIN HERE TOMORROW EVENING. THANK YOU AND GOOD NIGHT. MAJOR FUNDING FOR THE PBS NEWSHOUR HAS BEEN PROVIDED BY: AND BY THE ALFRED P. SLOAN FOUNDATION. SUPPORTING SCIENCE, TECHNOLOGY, AND IMPROVED ECONOMIC PERFORMANCE AND FINANCIAL LITERACY IN THE 21ST CENTURY. AND WITH THE ONGOING SUPPORT OF THESE INSTITUTIONS AND FOUNDATIONS. AND... THIS PROGRAM WAS MADE POSSIBLE BY THE CORPORATION FOR PUBLIC BROADCASTING. AND BY CONTRIBUTIONS TO YOUR PBS STATION FROM VIEWERS LIKE YOU. THANK YOU. Captioning sponsored by MacNEIL/LEHRER PRODUCTIONS Captioned by Media Access Group at WGBH access.wgbh.org

>> THIS IS "BBC WORLD NEWS AMERICA."

>> FUNDING FOR THIS PRESENTATION IS MADE POSSIBLE BY -- THE FREEMAN FOUNDATION OF NEW YORK, STOWE, VERMONT, AND HONOLULU, NEWMAN'S OWN FOUNDATION, AND UNION BANK.

>> AT UNION BANK, OUR RELATIONSHIP MANAGERS USE THEIR EXPERTISE IN GLOBAL FINANCE TO GUIDE YOU THROUGH THE BUSINESS STRATEGIES AND OPPORTUNITIES OF INTERNATIONAL COMMERCE. WE PUT OUR EXTENDED GLOBAL NETWORK TO WORK FOR A WIDE RANGE OF COMPANIES, FROM SMALL BUSINESSES TO MAJOR CORPORATIONS. WHAT CAN WE DO FOR YOU?

>> AND NOW "BBC WORLD NEWS AMERICA."