Facebook Crisis
“Management Control-Simulation in the Physical World and the Social Media” | ADandPRLab | Panteion University
In the framework of “Advertisement and Public Relations VI lab: Management Control-Simulation in the Physical World and the Social Media” that took place at Panteion University and was supervised by Professors Betty Tsakarestou and M. Xenou, we were given the opportunity to analyze the Facebook crisis that broke out on March 2018. Our goals were to:
· Analyze Facebook Crisis
· Discuss about Zuckerberg’s reaction
· Express our opinion about the crisis and Zuckerberg’s reaction.
Analysis
In 2013, researcher Aleksandr Kogan from Cambridge University, created a personality quiz app, installed by 300.000 people. The app was then able to retrieve Facebook information, including the user’s friends. Not until 2015, the CEO of Facebook, Mark Zuckerberg learned that these user’s information was shared to Cambridge Analytica — a U.K.-based political data analytics firm. It was asked Cambridge Analytica to remove all the data, but it never actually happened.
In March 2018, Cambridge Analytica illicitly procured the data of 50 million Facebook users — without their knowledge or authorization — and then enlisted that to inform voter-targeting strategies for Donald Trump’s presidential campaign and his “Leave” vote on Brexit. Since then, the media and the whole world were in ache, blaming Facebook for the misuse of information.
In between, the crisis exploded with executives leaving, lawsuits filled and accusations made. The public became aware of the importance of personal data and discussions were made on the ethical standards that social media companies follow such as political consulting organizations and politicians, while other tech companies are called for tighter adjustments on use of data. Apple CEO Tim Cook said “privacy to us is a human right […] (Apple) could make a ton of money if it chose to monetize its customer’s data”, while NBCUniversal chief Steve Burke stated “Facebook is a gigantic business, and gigantic businesses have big responsibilities to the world”.
A massive fall was noted on Facebook’s stock price down to 17% in less than two weeks, meaning more than 90$ billion in market value. FTC considered whether or not there were violation in an agreement, in which every violation carries penalties up to 40,000$ each. In addition, 41 Us attorneys requested details on Cambridge Analytica for evaluation on violations against consumer — protection laws.
Following the lawsuits from both shareholders and user, a #DeleteFacebook campaign made its appearance. Actor-comedian Will Ferrell and Playboy separately said they were terminating their Facebook accounts over the Cambridge Analytica issue. A week earlier, tech billionaire Elon Musk summarily axed the Facebook pages for two of his companies, Tesla Motors and SpaceX, after Twitter users called his attention to their existence. And Brian Acton, a co-founder of messaging app WhatsApp — which Facebook acquired in a deal valued at $19 billion — called for a boycott in a tweet: “It is time. #deletefacebook.”
Zuckeberg’s Reaction
Mark Zuckeberg broke his silence 4 days later of the incident with Facebook post of 935 words, partly taking responsibility for it and apologizing for rift in the users’ trust. He actually stated “We have a responsibility to protect your data, and if we can’t then we don’t deserve to serve you […] We’re an idealistic and optimistic company, but it’s clear now that we didn’t do enough. I clearly made a mistake by just dismissing fake news as ‘crazy”. Our view of our relationship with people is that our job is to give them tools, and that it was largely people’s responsibility how they chose to use them.”.
Crisis experts said that the CEO’s response came too late. A communication coach stated “Since Facebook defines how we calculate real time for our world, there was expected for them to be in real time too”. Also, the platform made firms and corporation in general to be more human; after Facebook was created and still to this day, people begun to trust organizations and companies. Even Zuckerberg had stated that “people trust people, not institutions.” So it can come out quite strange that he waited 4 days to speak about his company’s existential crisis. When asked he said that the whole team wanted to be sure and aware of every aspect of the matter. However, crisis experts supported that, if someone wants to be both careful and direct, there the way of continuing conversation with the public, in order to achieve to come across as honest and reliable. When taking time, there might be some doubt created that what people hear is something lawyered up and not the truth. After, Zuckeberg spoke to the Press and Congress. In April 5th press call, Zuckeberg referred to Facebook’s eponymous social network as “complicated” and “complex” and that since he started it, he is responsible for what happens. Polls showed that people are way skeptical towards Facebook.
Our opinion
As most experts say, we totally agree that Zuckerberg’s reaction came late.
Immediately after the crisis was created, Zuckeberg should have made a statement in order to reassure people about their privacy and that the issue will be investigated. This way, he would gain the time to research the matter in depth while avoiding the negative comments that came from the media. However, his decision to speak to the Press and the Congress was perfectly right in order to separate his thesis from the scandal and try to gain user’s understanding and trust.
Here is our presentation
Our Team:
Korina Simeonidou Marilyn Koutonias Dimitra Giannakopoulou Eleni Protopapa Liana Kollia Marios Joseph Aimilia Kapanou
