Managing Online Reputation

The internet can be your greatest ally or your fiercest adversary—learning to manage it is no longer optional, but essential.

1. Social Media Campaigns Can Backfire

Social media campaigns are often used to boost visibility and communicate directly with audiences. However, their interactive nature opens the door for unintended consequences. Companies risk turning their own platforms into arenas for criticism.

For example, Qantas launched a Twitter campaign with the hashtag ##QantasLuxury to promote their premium services. Instead of glowing testimonials, the hashtag was flooded with customer complaints, ranging from flights failing to land on time to their safety record related to a previous aircraft fire. What started as an advertising opportunity turned into a public relations nightmare.

Once a campaign spirals, it's hard to regain control. Qantas’s debacle quickly reached major news outlets like the BBC, amplifying its reach and further damaging the company. This scenario demonstrates how a poorly planned campaign can have repercussions far beyond the original platform.

Examples

• Qantas’s ##QantasLuxury campaign elicited negative customer feedback.
• BBC and Sydney Morning Herald covered the backlash, widening its impact.
• Old airline safety concerns resurfaced due to the negative attention.

2. Competitors and Foes Can Exploit Social Media

Social media doesn't just attract customers; it also provides a platform for competitors or adversaries to stage attacks. These attacks are often anonymous, making them hard to trace.

Hoi Tin Tong, a Hong Kong herbal medicine company, suffered from this when a video allegedly showing its use of moldy jelly went viral. Though the company accused a former supplier of orchestrating the smear, the damage was already done. The South China Morning Post picked up the story, and Hoi Tin Tong lost significant business.

Even extremist groups have leveraged social media to expand their influence. ISIS, for instance, used the "Dawn of Glad Tidings" app to spread targeted messages. By effectively timing their posts, they dominated trending topics with minimal resources, showcasing the wide-ranging power of social media.

Examples

• Hoi Tin Tong accused a competitor of circulating a damaging video.
• South China Morning Post amplified the viral content.
• ISIS utilized apps and coordinated posts to increase visibility.

3. Small Individuals and Groups Can Gain Great Influence

The internet offers endless potential for small actors to cause significant impact, empowering activists, entrepreneurs, and smaller organizations to challenge well-established power structures.

For instance, Molly Katchpole mobilized an online petition against Bank of America’s proposed debit card fees. Her efforts led to over 300,000 signatures and 21,000 customers closing their accounts, forcing the bank to abandon its fee plan.

Even NGOs have strengthened their efforts through digital platforms. Oxfam’s internet campaign in 2013 pressured chocolate companies like Nestlé and Mars to ensure fair pay for women in cocoa farming. Through viral campaigns, these groups achieved outcomes previously unattainable without substantial resources.

Examples

• Molly Katchpole’s campaign led to consumer boycotts against Bank of America.
• Oxfam rallied global consumers to address unfair practices in the cocoa industry.
• Greenpeace leverages its online presence to challenge multinational corporations.

4. Verify Crises Before Responding

Quickly responding to a crisis is important, but responding without all the facts can worsen the problem. Accurate information is the foundation of any effective reaction plan.

In 2011, a video showing a FedEx employee mishandling a package quickly gained traction on YouTube. FedEx's PR head, Shea Leordeanu, approached the situation strategically. Instead of issuing an instant statement, she verified the video's authenticity and located the affected customer. Once certain of the facts, FedEx apologized over Twitter and resolved the issue privately, minimizing the crisis.

This approach contrasted with less thought-out responses that worsen public relations, showing the importance of ensuring credibility before proceeding.

Examples

• FedEx verified a viral video’s legitimacy before acting.
• Their PR head apologized via Twitter and replaced the damaged item.
• Missteps in responding too soon often lead to misinformation.

5. Employees’ Actions Can Escalate Reputation Issues

Employees, much like customers, can present reputational challenges. Mishandling employee-driven situations can cause backlash against companies, as seen with Apple's response to an employee’s social media post.

At Applebee’s in 2015, an employee shared a disgruntled customer’s receipt online. While the company fired the employee for violating policies, public sympathy favored the waiter. Many felt the punishment did not fit the situation, painting Applebee’s in an insensitive light.

Balancing the perspectives of employees and the public is vital in these situations. Responding without alienating either group—or escalating the issue—is critical for long-term stability.

Examples

• Applebee’s firing of the employee caused public backlash.
• Social media played a significant role in shaping public opinion.
• The incident highlighted the need to balance empathy and company policies.

6. Careful Handling of Media Is Necessary

Working with journalists demands tact since negative coverage can magnify damage far beyond the initial issue. Missteps in dealing with the press can escalate problems instead of resolving them.

Tesla learned this the hard way. After a New York Times review described their car’s poor performance in cold weather, Tesla CEO Elon Musk publicly accused the reporter of misleading the public. Though Tesla had data supporting its claims, Musk’s aggressive approach backfired. The confrontation not only harmed Tesla's reputation but also strained relations with one of the most credible newspapers worldwide.

Cooperative and respectful communication with journalists often leads to better outcomes, especially in controversial cases.

Examples

• Tesla CEO Elon Musk accused the New York Times of misrepresenting facts.
• The public dispute hurt both Tesla’s and the reporter’s reputations.
• Confrontations with influential media outlets often backfire.

7. Speed and Sincerity Are Critical in a Crisis

In a crisis, a quick and genuine apology can save relationships with customers and partners. Delay, however, can alienate the public and exacerbate damage.

Malaysia Airlines faced immense criticism during the disappearance of flight MH370 in 2014. Initial communications came hours after the incident, and it took weeks for them to issue a heartfelt apology. This lack of immediate response tarnished the airline's reputation, damaging public trust.

On the other hand, KitchenAid quickly apologized for an offensive tweet during Barack Obama’s presidency. Prompt action helped mitigate the fallout, showing the value of responding with speed and authenticity.

Examples

• Malaysia Airlines delayed issuing a statement during the MH370 crisis.
• Public frustration grew due to a lack of immediate updates or apologies.
• KitchenAid immediately deleted an inappropriate tweet and apologized.

8. The Public Demands Transparency

People expect companies to communicate directly during crises. Transparency prevents misinformation from taking over and builds trust.

Creating a corporate blog is one way to ensure direct communication. When managed well, blogs allow companies to present their side of the story without relying on third-party coverage.

Companies that fail to adopt communication platforms often leave the narrative in the hands of others, risking distortions of the truth.

Examples

• Corporate blogs provide space for detailed narratives during controversies.
• Blogs build trust by sharing data, photos, or step-by-step responses.
• Direct communication helps companies retain control of their story.

9. Reputation Can Change in an Instant

Online reputation is fragile. What takes years to build can crumble in hours, underscoring the importance of constant vigilance and a strong crisis management plan.

Even small companies are vulnerable to sudden reputational threats. Having systems in place to monitor social media and jump into action can make all the difference.

Examples

• Long-established businesses often succumb to sudden online backlash.
• Timely interventions can save reputations that seem under siege.
• A single mistake, if not handled properly, could alienate loyal customers.

Takeaways

1. Always verify all facts before responding to a crisis—even when speed is a priority.
2. Regularly monitor social media and prepare crisis plans for potential vulnerabilities.
3. Create a dedicated platform, such as a company blog, to address public concerns directly.