Facebook Connection to the Cambridge Analytica Scandal and the Decision's Consequences

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Facebook Connection to the Cambridge Analytica Scandal and the Decision it took
A critical situation facebook experienced was the Cambridge Analytica scandal. The scandal was about how Kogan retrieved personal data from Facebook operators and shared it with Cambridge Analytica through his Global Science Research company (Osborne & Hannah Jane Parkinson, 2018). Cambridge Analytica has been accused of using dirty deceptions to brandish elections. Generally, the scandal could harm facebook’s reputation since the company is responsible for protecting its customers’ data. Mark Zuckerberg, Facebook CEO, responded to the revelation of the scandal and deduced that they have a responsibility to protect their customers’ data failure to which they don’t deserve to serve them (BBC, 2018). He stated that they were working to understand how hackers retrieved from the platform. However, the United States and British authorities had asked for his testimony before the congress and a parliamentary committee. The CEO agreed to a single interview with CNN and announced that the company was taking various steps to protect personal data for its users. The company announced the introduction of a new privacy shortcut menu where customers could control their data simply and with vivid explanations on how the controls work.
Consequences of Their Decisions
At this point, Facebook users’ primary concern was to know whether or not the company was aware of the operations and whether it was straightforward or innocent concerning the developers’ actions. Reports indicate that the Cambridge Analytica scandal significantly impacted Facebook and seven internet giants who lost a quarter billion euros due to the revelations (Simón, 2018). Also, the company took a hit on the stock market, losing 18%. It is evident that investors were frightened and fleed to implement tighter regulations. The Cambridge Analytica infamy resulted in a call for introducing rules and regulations that govern prominent players making a living by harvesting individuals’ data from social media. In addition, it has led to a trust gap between folks and social media companies.
Steps Facebook Should Have Taken Regarding the Revelation.
After the Cambridge analytical scandal went viral, Facebook should have taken the following steps. First, the company should have monitored the ongoing situation and analysis. After the new york times and the guardian published the breaking stories, preliminary damage control should have been performed on its internal evaluation aspects indicated in the crisis management plan. A comprehensive evaluation should give a complete program on handling one of the most critical risks that can affect a company like Facebook, which is data exposure. The company needed to establish communication leadership to control the published information at this juncture. The most crucial thing is fast and effective communication to direct the conversation. Failure of communication will result in speculations. Delay in communications also results in damage to personal and company reputations.
Second, the company should have established its story on the issue. The report should be based on the value of the company. The company’s value should always be in the corporate narrative to overcome the crisis in any claims, content, and materials targeted to stakeholders. The third step Facebook ought to have taken is communication. During a problem, contact should be done quickly and knowledgeably. Individuals should recall that everything means something, particularly silence. Silence results in the emergence of rumors and distrust and is mainly interpreted as individuals who have acknowledged they are guilty. At the point of the scandal revelation, Facebook CEO was in deep trouble since every Facebook and social media user demanded his explanation. However, the CEO published some information on his Facebook wall, posted a video, and offered an interview with CNN. He also addressed the issue and gave his explanation and apology. In addition, he testified before the U.S congress.
Additionally, the company should have mobilized its legal and PR team. Although this step is not sequential, it must be considered from the beginning. The revelation of the scandal might result in the presentation of lawsuits against the company. Also, economic penalties and administrative changes are likely to happen. The regulatory changes will likely outclass your public image, but it will be necessary. Company alignment with an integrated legal scheme is a perfect idea. However, taking legal precautions should never prevent folks from protecting their reputations or operating their business. Incrimination of individuals’ reputation and people and media judgment usually occur even before anyone is tried.
Lastly, Facebook should have continued to check, reexamine and redefine its strategy. With the opening of the pandora box, the company has a challenging task in the future. The present disaster cannot be contained so quickly due to the political and financial risks. The company has to remain cautious and handle changes that may arise by continuously changing its strategies and methods. The crisis brought by the scandal will only be contained when the company is sure that there is no growth in damage regarding the business and its reputation. However, the company should closely follow the development of new things since many factors work against them and rekindle the fire.
Steps Taken by Facebook After the Scandal
After the Cambridge Analytica scandal, Facebook took additional measures to ascertain their data safety. The company announced various changes within less than a month follow...