News & Insights

In the age of instantaneous media consumption, a company’s brand, along with the reputation management behind it, is both precious and fragile. A misinterpreted social post, leaked internal information or the tactless words of an employee can crush years of trust between the public and a brand. Sometimes, this breach of trust is permanent. So, how exactly does social media influence perception, and how can organizations protect themselves from reputation destruction while maintaining the public’s trust?

High Stakes, Heavy Consequences

Now, more than ever, the stakes are high for companies, and so are the risks. Social media algorithms are built to circulate and push out high-engagement content, regardless of what it’s about. Oftentimes, this engagement can cross platforms, creating even broader backlash. A viral post that starts on LinkedIn will eventually end up on Instagram before TikTok and X users join in on the conversation.

The algorithm is unforgiving and neutral. Public outcry, company mishaps (especially among established brands) and controversy drive think pieces and discussions. In turn, what develops is a PR nightmare for leadership to deal with.

Even when the public fallout has subsided, the aftereffects can be detrimental. Modern consumers, especially Gen Z and young adults, are incredibly conscious of an organization’s history or past controversies when choosing whether or not they will support the business. A single slip-up will turn negative press into a loss of sales, something that can be incredibly difficult to regain for smaller boutique brands.

In this case, consumers can also mean shareholders and partners. Nobody, regardless of their place on the food chain, wants to be associated with negative press. Shareholders may sell their stock, and larger, more prominent investors operate under strict ethical and regulatory guidelines, meaning they may be legally required to withdraw investments.

The odds are, if someone doesn’t want to give you their business, they probably won’t want to work for you either. Along with negative press and a dip in revenue, companies could face hiring struggles. Just like consumer consciousness, those looking for work might be wary of working for a company whose values they don’t align with.

For some industries, top talent and qualified professionals can be hard to come by. A bad reputation bred from controversy only makes the hiring process more difficult.

We have seen the aforementioned scenarios play out time and time again. Retail stores, pharmaceutical companies, sports teams and media organizations have all borne the brunt of negative backlash. What separates mediocre companies from great ones is their level of proactivity and how they manage in times of external conflict.

Essential Proactivity

Preemptive action is vital. Reputation management cannot serve as a passive box on a checklist, or something that leadership is half-prepared for. No company, whether they’re Fortune 500 or a 50-person team, is immune to controversy.

Consistently following industry guidelines and maintaining ethical practices is what drives proactivity. It’s an insurance policy, and one that can help avoid negative press. This can also come from learning from the mistakes of other organizations. Not only to avoid backlash, but to improve your company internally. Recognize where competitors have fallen short and evaluate your employees and business habits to ensure you won’t follow suit.

Brands should be in a perpetual state of listening and learning. Listen to the needs of the public through media such as social platforms and catch dissatisfaction early. Don’t wait until a mistake has reached thousands if not millions of people, because by then, it’s too late to control the narrative.

While no company is perfect, mishaps can absolutely be avoided through the application of company policies and the regular evaluation of employees, including leadership. Brands that control the narrative, address controversy early on and listen to the needs of their consumers can establish a reputable persona built on years of public trust.