NEW YORK (AP) -- The crisis-management
playbook is pretty simple: Get ahead of the story, update authorities
and the public regularly, accept responsibility and take decisive
action. Crisis-management experts say that until Wednesday, Facebook was
0-for-4.
Facebook’s two top executives, CEO Mark Zuckerberg and chief operating
officer Sheryl Sandberg, went radio silent after news broke last Friday
that political consulting firm Cambridge Analytica may have used data
improperly obtained from roughly 50 million Facebook users to try to
sway elections, including the 2016 White House race.
It was not until five days after the scandal erupted that Zuckerberg
spoke up.
Meanwhile, some Facebook users have been leaving the social network or
mulling the possibility , and Facebook’s stock is down 9 percent since
Friday.
Facebook’s handling of the growing public-relations crisis is remarkable
in that one of the world’s biggest companies seems not to be playing by
well-established crisis-management rules.
“This will go down as the textbook case study as how not to handle a
crisis,” said Scott Galloway, a New York University professor of
marketing. “The only thing we know about this and are comfortable
predicting is that it’s going to get worse.”
In his statement Wednesday — posted, of course, on Facebook — Zuckerberg
acknowledged that mistakes were made, outlined changes the company has
undertaken, and accepted responsibility for the problem.
Experts said acknowledging accountability was a positive but the fact
that Zuckerberg didn’t outright apologize is a negative.
“My biggest skepticism is that we’ve seen this play before,” said Helio
Fred Garcia, a professor of crisis management at NYU and Columbia
University in New York. “They’re caught coming short of customers’
privacy expectations. They tweak procedures. But they don’t seem to
learn from mistakes, don’t really seem to care.”
Most Fortune 500 companies adhere to well-established crisis-management
rules. When video surfaced of a passenger being dragged from an
overbooked United Airlines flight last April, for example, CEO Oscar
Munoz at first hedged but then apologized . When Pepsi ran an ad last
spring featuring Kendall Jenner that appeared to trivialize the “Black
Lives Matter” movement, the company pulled the ad , saying, “Clearly we
missed the mark, and we apologize.”
The point is to at least make an effort to seem remorseful to win back
public trust, experts say. But despite user outcry on its own Facebook
page and a call from Congress for Zuckerberg to testify about Facebook’s
role in election-meddling, Facebook seems to be charting its own course.
“At this point, ‘Why did you wait so long to make a statement?’ is now
news in itself,” Paul Argenti, a business professor at Dartmouth, said
before Zuckerberg spoke up.
It’s a pattern Facebook has long followed, according to Garcia. Facebook
hedged during its early days in 2007 over a controversial advertising
program called Beacon that did not alert users it was sharing their
activity, and it did so again in its response to Russian bots hijacking
Facebook ad software during the Trump campaign in 2016.
“Facebook has been too late. Facebook has done too little and has been
too legalistic” each time, Garcia said. “I have yet to find a crisis
Facebook handled that I could stand in front of crisis management
classes and say, ‘Here’s an example of how to handle a crisis.’ They’ve
never been able to handle a crisis.”
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