Facebook Faces a Reputational Meltdown
This is how it, and the wider industry, should respond
Last year the idea took hold that Mark Zuckerberg might run for president in 2020 and seek to lead the world’s most powerful country. Today, Facebook’s founder is fighting to show that he is capable of leading the world’s eighth-biggest listed company or that any of its 2.1bn users should trust it.
Since the news, spooked investors have wiped 9% off Facebook’s shares. Consumers are belatedly waking up to the dangers of handing over data to tech giants that are run like black boxes. Already, according to the Pew Research Centre, a think-tank, a majority of Americans say they distrust social-media firms. Mr Zuckerberg and his industry need to change, fast.
The addiction game
Facebook’s business relies on three elements: keeping users glued to their screens, collecting data about their behaviour and convincing advertisers to pay billions of dollars to reach them with targeted ads. The firm has an incentive to promote material that grabs attention and to sell ads to anyone. Its culture melds a ruthless pursuit of profit with a Panglossian and narcissistic belief in its own virtue. Mr Zuckerberg controls the firm’s voting rights. Clearly, he gets too little criticism.
