The New Era of Corporate Reputational Risks: How Companies Can Combat Disinformation
The Rise of Disinformation
For major companies, managing the fallout from internal mis-steps has always been challenging. However, safeguarding reputations is only getting tougher. The use of artificial intelligence to produce false material, such as deepfake videos, has heightened the risks.
The Consequences of Disinformation
Governments have long complained about disinformation undermining elections, inciting unrest, and deepening societal divides. Businesses are now in the crosshairs, too. "Over the last couple of years, disinformation has been on the rise, and now it is spreading like knotweed," said Julian Payne, global chair of crisis and risk at consultancy Edelman.
Real-Life Examples of Disinformation
Arla Foods, the owner of the UK’s biggest dairy co-operative, has learnt the hard way. After announcing a trial of a feed additive aiming to reduce methane emissions in dairy cows, some customers pushed to boycott milk products. A social media storm ensued, featuring unfounded and bizarre claims that the additive was part of a plot to depopulate the world by creating fertility issues, and conspiracy theories linking the additive to Bill Gates. UK regulators have approved the additive, Bovaer, as safe, while its manufacturer has blamed "mistruths and misinformation" for the frenzy.
In a separate instance, US retailer Wayfair was targeted by a campaign making wildly spurious allegations that its cabinets "listed with girls’ names" had children hidden in them as part of a child trafficking ring.
The Impact on Businesses
A survey by Edelman of almost 400 top communications and marketing executives found that eight in 10 worry about the impact of disinformation on their businesses. Fewer than half feel prepared to tackle these risks.
The Need for Action
Companies need to be mindful of misinformation, which is accidental, and malinformation, which exaggerates truths or changes their context to cause harm. Threats can take many forms – fabricated news, phoney social media accounts, and fake text, audio, or video content. Online superspreaders, often aided by AI, intensify these attacks, allowing disinformation to ricochet unpredictably.
Best Practices for Companies
Bosses should consider whether their policies on geopolitics, climate change, or other issues make them likely targets. Finding so-called "tripwires" and testing crisis responses can highlight weaknesses. Instinctively, calling out falsehoods quickly after an attack makes sense, but this can amplify the fabricated message, pushing it from obscure corners of the internet into the open.
Conclusion
In a digital world where false narratives spread faster than ever, companies can no longer rely on outdated playbooks. To mitigate the risks of disinformation, companies must invest in mapping and tracking disinformation sources, building credibility in advance, and testing crisis responses. The hope is that consistent transparency means they are more likely to be believed when it counts.
FAQs
Q: What is disinformation?
A: Disinformation is the deliberate spread of falsehoods to deceive.
Q: What is misinformation?
A: Misinformation is accidental and refers to the spread of false information without malicious intent.
Q: What is malinformation?
A: Malinformation is the exaggeration or alteration of true information to cause harm.
Q: How can companies combat disinformation?
A: Companies can combat disinformation by mapping and tracking disinformation sources, building credibility in advance, and testing crisis responses.
Q: Why is disinformation a concern for businesses?
A: Disinformation can damage a company’s reputation, lead to boycotts, and put employee safety at risk.
