social media: corporate reputation at risk
TRANSCRIPT
Corporate Reputation at RiskSocial Media
Created by: Alex Schaerer
“As people spend more time on the Internet,managing reputation on social media becomes increasingly important for public relations” – Nielsen1
2.34B
1.87B
319M
Social Network Users Worldwide2
Active Facebook Users Worldwide2
Active Twitter Monthly Users2
Online,thesefactorsexperienceanewlevelofscrutiny:notonlydousersexpectorganizationstocommunicatehonestlyandopenly,buttheyhavethemeanstosearchanduncoverfactsthatorganizationswouldprefer tohide.3
The latest figures show that Internet users spend most of their time on social networks, and half of all social media users said that at least once a month they had expressed complaints or concerns about brands or services on social media.3
1. Damage tobrandreputation2. Disclosureofproprietaryand/orconfidential information3. Corporateidentitytheft4. Legal,regulatoryandcompliance violations4
4CorporateRisksAssociatedwithSocialMedia4
Nearlythree-quarters(71%)ofexecutivessurveyedwereconcerned aboutthepotentialrisksinvolvedintheuseofsocialmedia,buttheybelievetheriskscanbemitigatedoravoided.4
Having a very clear public relations strategy around social media communication is mission critical. The velocityand the visibility of social media communications is not to be underestimated.5
3 Ways the Web Has Changed the Business World6
1. The declining effects of traditional marketing
2. Decreasing customer trust
3. Increasing customer power due to more alternatives, more information and more transactions
Socialmediahaschangedthewaypeoplecommunicate intermsofpaceandreachofcommunication,thereforecontentonsocialmediacanturnintoathreat andthethreatcanturnintoarapidcommunicationcrisis.Theprevailingdilemmaorganizationsarefacingisthatwhiletheyrecognizetheimportanceofsocialmediainteraction,theytendtolackcorporatecapabilities tomanagecrisiscommunicationeffectively.6
Usersofsocialmediaapplicationsproducemostlyunverifiedinformation,whichtendtobeboth,trueandfalse.Theinformationcreatedandsharedbyuserscoulddiffersignificantly fromwhatorganizationspubliclydisclose.6
”Whenmarketersarenottransparentandconsumersdiscoverthesecretsourceforthemselves,theycanbecomequiteunhappywiththemessageand/orthemedia.Bynothavingtransparentmarketing,corporatereputationinturnbecomesflawedastheconsumernolongertruststhecompany.”7
Ofthegeneralpublicindicatedtheyproactivelyseekinformationaboutthecompaniestheydobusinesswith
72%OpinionElitesinvestigatecorporate
behaviorbeforebuying
53%
Consumersaredoingtheirhomework8
So… whatcancompaniesdo?Followthe6StepsforProtectingCorporateReputationintheSocialMediaAge9
1.Don’tPretenda Crisis Is Not Happening
Respondrightaway.Itisnolongeracceptabletowaithoursordaystorespondbackviasocialmedia.Timeisoftheessence,thereforeawellcraftedresponseiscrucialtoemployassoonasthecrisisbegins.9
2.Don’tMakeanEmptyGestureDonotfeedthepublicanapologyorexplanationthathasnomerit.Socialmediauserscapitalizeontheseresponsesandwilleatacompanyalive.9
3.Don’tRefuseto Backtrack“Socialmediashouldbeusedasatoolforhonestcommunication.Admityourmistake,andspeakdirectlytoyourcustomersabouthowyou'llbegoingbacktofixthings.”9
4.Develop Channels ofCommunication
EnsurethatcorporatechannelssuchasFacebook,Twitter,Blog,Instagrametc.arestrongandhaveapresencethatwillreachtheconsumers.9
5.Establish a CrisisCommunicationsResponseTeamCompaniesmustdrivethemessagingandresponse.Uselisteningplatforms,monitorsentiment,andestablishadedicatedteamtoinformandadviseinternalandexternalstakeholdersofissuesandresponses.9
6.BecomeInfluentialandChange PerceptionsIfthecompanydoesnotbecomeinfluentialtheybecomeirrelevant Usethesechannelstofocustheconversationaroundyourbrandsothatwhenacrisisdoesarise,youhavemorecontrolovertheperception.9
Protecting your company’s reputation is
an ongoing business process.
ResearchReferences• 1.Nielsen.(2012).StateoftheMedia:SocialMediaReport2012.USA:Nielsen.Retrievedfromhttp://blog.nielsen.com/nielsenwire/social/2012/Phillips,D.,&Young,P.(2009).Onlinepublicrelations:Apracticalguidetodevelopinganonlinestrategyintheworldofsocialmedia.Philadelphia:Kogan PageLtd.
• 2."Topic:SocialMediaStatistics."Www.statista.com.May12,2016.AccessedMarch05,2017.https://www.statista.com/topics/1164/social-networks/.
• 3.Ott,Larissa,andPetraTheunissen."Reputationsatrisk:Engagementduringsocialmediacrises." PublicRelationsReview 41,no.1(2015):97-102.doi:10.1016/j.pubrev.2014.10.015. (Coursesource)
• 4.GrantThorton."Socialmediarisksandrewards."September2013.AccessedMarch5,2017.https://www.grantthornton.com/~/media/content-page-files/%20advisory/pdfs/2013/ADV-social-media-survey.ashx.
• 5.Video"FILM240Module02Lecture02Part02"fromSidneyeve Matrixvia Vimeo (CourseSource)• 6.Hövener,Michael."CorporateReputationalRiskManagement:ThePowerofSocialMedia."AccessedMarch5,2017.http://essay.utwente.nl/68528/1/hovener_BA_IBA.pdf.
• 7.ColinCampbell,LawrenceJ.Marks,Goodnativeadvertisingisn’tasecret,BusinessHorizons,Volume58,Issue6,November–December2015,Pages599-606,ISSN0007-6813,http://dx.doi.org/10.1016/j.bushor.2015.06.003.(http://www.sciencedirect.com/science/article/pii/S0007681315000841) (CourseSource)
• 8.TheHarrisPoll."TheHarrisPollReleasesAnnualReputationRankingsForThe100MostVisibleCompaniesInTheU.S."Business.AccessedMarch05,2017.http://www.theharrispoll.com/business/Reputation-Rankings-Most-Visible-Companies.html.
• 9.Revis,Layla."6StepsforProtectingCorporateReputationintheSocialMediaAge."Mashable.January02,2012.AccessedMarch05,2017.http://mashable.com/2012/01/02/corporate-reputation-social-media/#8jqXc6x5Uiqw.
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