Communication lessons from Facebook’s data crisis
When facing a loss of consumer trust, it’s imperative to respond quickly
and efficiently—and to choose the right spokesperson for the job. How
has the social media giant performed?
By
When it was revealed that Facebook was engaged in a situation of alleged
data misuse by Cambridge Analytica, the world was shaken by the lack of
transparency and eerie silence that followed the breaking news, capturing
international headlines. The company turned what could have been a case of
proactive issue management in 2015—when it learned of this data
problem—into a full-blown,
reactive crisis.
We live in an age of 24-hour digital connectivity with an expectation for
immediate response time, especially when it comes to the tech giant that
has defined the social realm. Facebook’s approach to the situation is a
classic scenario of taking a back seat when a company could have—and should
have—been the driver at the onset of an issue.
Here are four takeaways following the Facebook debacle that companies of
all sizes can learn from:
1. Don’t gamble with a potential crisis.
When a company is faced with a controversial decision, though it isn’t
currently a crisis, it could easily become one. Know that however the dice
rolls can have ultimate future consequences.
Facebook was at a crossroads in 2015 when it learned that user data
acquired by Cambridge Analytica was misused. Even though an agreement was
made between the two parties that Cambridge Analytica would delete the
information, it left Facebook vulnerable to exposure and ridicule regarding
transparency.
A company choosing to withhold information in a heated situation should
always be prepared for the chips to fall either way. That means, having
plans in place for all possible outcomes, and being able to execute
promptly.
2.
Project transparency to foster trust.
Facebook was challenged by a “lesser of two evils” situation, whereby the
company could have proactively admitted to third-party access to consumer
data when it occurred, or the latter chosen path of withholding information
that became publicly revealed through other sources years later. Its loss
in public trust, due to a lack of transparency, is aa bigger loss than
whataver gains it achieved by putting off admission of a mistake at the
onset.
In an Entrepreneurs column,
Forbes
notes that “the most valuable business commodity is trust.” Trust is an
immeasurable currency, both externally and internally; once lost, a company
must climb a mountain of challenges to reestablish its integrity.
3. Provide a response within 24 hours.
It is not always feasible to respond to a crisis immediately, especially
when a need for legal counsel exists. Yet, the longer a company waits to
publicly address an issue, the less control they maintain of their public
perception: Silence breeds skepticism.
In the case of Facebook, its silence for multiple days allowed headlines to
overshadow the company’s voice. The aftermath resulted in a social campaign
encouraging users to delete their accounts, a tank of Facebook’s stock
value, an investigation by the Federal Trade Commission and other
intangible losses.
A crisis should first be addressed within 24 hours. While a company may not
be able to divulge detailed information, an initial statement must express
the main points of acknowledging the situation, a sense of urgency in
resolving the issue and empathy to demonstrate humanity in the
organization.
4.
The face of a crisis can shape its future.
The first voice to speak on behalf of a company will have a lasting impact.
The selected spokesperson must have a stance of authority that meets the
expectation of its audience (i.e. customers/clients, stakeholders).
This is especially the case when involving a high-profile company leader
such as Mark Zuckerberg, who appeared to remain in the shadows for days
before addressing the public. Rather, the first spokesperson to comment on
behalf of Facebook was its VP and deputy general counsel Paul Grewal. The
consumer outrage that followed this approach demonstrates that the public
can be highly critical of, not only the actual crisis at hand, but also by
whom the matter is communicated.
What are you taking away from Facebook’s crisis of trust, PR Daily
readers?
Vanessa Fioravante is a co-principal of
ANDER & Co.
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