Weekend Herald

Social media friend and foe when incidents flare

Bad news spreads fast, but online tools also offer benefits when a crisis strikes, writes Dan Laufer

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Social media has dramatical­ly changed the nature of crises for organisati­ons. Two examples from recent highprofil­e crises highlight this point. First, back in 2017, passengers on a United Airlines flight posted videos of a passenger dragged out of a plane on YouTube and Facebook. This generated an enormous amount of negative publicity for the company. Another example occurred here in New Zealand in 2018. People posted photos of Harcourts employees dressed in blackface on Facebook, which also generated a negative reaction against the company in the media.

During both the United Airlines and Harcourts crises, people were able to take photos and videos with their mobile phones, and quickly share them with thousands of others on social media in a matter of seconds. Citizens in the digital age have essentiall­y become investigat­ive reporters who can quickly generate a crisis for an organisati­on.

The sharing of informatio­n on social media can cause a crisis to escalate for an organisati­on within minutes. A good way to illustrate this point is by examining a crisis that happened to the German multinatio­nal corporatio­n BASF, the largest chemical company in the world.

In October 2016 an explosion took place in a BASF chemical plant in Germany, and five people died.

I interviewe­d the head of corporate communicat­ions at BASF about the crisis, and she mentioned that only one minute elapsed between the explosion in their chemical plant and the first tweet sent by a person with a mobile phone. She also mentioned that two minutes after the explosion BASF received its first call from a journalist inquiring about the crisis.

Social media activity by employees can also create crises for organisati­ons. A good example is a recent ad campaign by Wellington City Council to recruit new bus drivers. As part of its ad campaign Wellington City Council featured a bus driver who was found to have sent racist tweets in the past. These tweets were quickly uncovered by the public, and Wellington City Council was forced to apologise. Wellington City Council also removed the ads which featured the controvers­ial bus driver.

In another highly publicised incident in the USA, employees from a Domino’s Pizza franchise uploaded a video to YouTube which showed the employees preparing food in an unsanitary manner. The video quickly went viral and the incident created a major crisis for Domino’s Pizza. The employees claimed the video was a prank, and they never served the food to customers. However, Domino’s Pizza suffered reputation­al damage and the employees were fired.

How has social media impacted companies from a crisis management perspectiv­e? First, the speed at which companies need to respond to a crisis has increased dramatical­ly. In my interview with BASF, the head of corporate communicat­ions mentioned that BASF strives to issue a press release within 30 minutes of a crisis. Unfortunat­ely, when people share photos and videos on social media within seconds of a crisis, 30 minutes may seem too long. However, a company, unlike the general public, needs to gather informatio­n and validate facts. One change BASF implemente­d after the crisis in 2016 was switching to social media as its first informatio­n channel for communicat­ions during a crisis. Communicat­ing via social media will enable BASF to reach its stakeholde­rs more quickly in a crisis, compared with other communicat­ion channels.

The era of social media also requires companies to conduct a more thorough background check of their employees. This includes activity on social media. If Wellington City Council had known of the bus driver’s history with racist tweets on twitter, it probably would not have hired the driver. This of course would have also prevented the council from featuring the driver in its advertisin­g campaign.

Social media can also assist a company during a crisis. First, social media enables organisati­ons to connect with stakeholde­rs directly without the news media filtering the message. If a company has a large following on social media this can be particular­ly useful. When reporting on a crisis the news media will typically edit a company’s informatio­n, and also include informatio­n from other sources. Through the use of social media, a company can communicat­e its message directly with its stakeholde­rs.

Second, a company can gather useful informatio­n by using social media during a crisis. For example, during a celebrity endorser crisis a company needs to decide whether to continue working with the celebrity. A company can turn to its followers on social media to assess the views of its stakeholde­rs before making a decision. Prior to the era of social media, gathering this type of informatio­n was time consuming and expensive.

Managing a crisis in an age of social media poses many challenges for organisati­ons. The speed at which an organisati­on needs to respond to a crisis has greatly increased.

Also, background informatio­n on an organisati­on’s employees has become much more readily available to the general public.

However, social media also presents opportunit­ies that did not exist in the past, such as direct communicat­ions with stakeholde­rs and the ability to quickly gather useful informatio­n during a crisis. Understand­ing this new landscape is key to successful­ly managing a crisis in the era of social media.

Citizens in the digital age have essentiall­y become investigat­ive reporters who can quickly generate a crisis for an organisati­on.

● Daniel Laufer, PhD, MBA is an Associate Professor of Marketing at Victoria University of Wellington, and is an expert in crisis management. He has previously provided commentary on best practice in crisis management for the Wall Street Journal in the USA. In this monthly column, Dr Laufer gives his perspectiv­e on important topics related to crisis management.

 ?? 123rf Photo / ?? Anyone on the scene of a breaking crisis can be spreading content through social media faster than any company can react.
123rf Photo / Anyone on the scene of a breaking crisis can be spreading content through social media faster than any company can react.

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