[et_pb_section admin_label=”section”][et_pb_row admin_label=”row”][et_pb_column type=”4_4″][et_pb_image admin_label=”Image” src=”https:\/\/ideasen.llorenteycuenca.com\/wp-content\/uploads\/sites\/6\/2018\/04\/Boton_web-ENG-01.png” show_in_lightbox=”off” url_new_window=”off” use_overlay=”off” animation=”off” sticky=”off” align=”left” force_fullwidth=”off” always_center_on_mobile=”on” use_border_color=”off” border_color=”#ffffff” border_style=”solid” url=”https:\/\/ideasen.llorenteycuenca.com\/wp-content\/uploads\/sites\/6\/2018\/04\/180418_DI_Article_Crisis_Facebook_ENG.pdf”]<\/p>\n
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[\/et_pb_image][et_pb_text admin_label=”Text – reasons behind the crisis” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n
Facebook is not the first social network to collect our personal information, and as users, we cannot honestly claim that we did not realize the real product being exchanged was our data. We all knew that if we did not pay to use Facebook, Google or Twitter, it was because someone was utilizing our personal information, which has become a valuable resource. Covert data mining is a lucrative business for companies that position segmented content on our Facebook feed. We all accepted the rules of the game, as long as we could follow the developments in our friends\u2019 lives – and share our own.<\/p>\n
As Enrique Dans says in his recent post<\/a>, this has been taking place through \u201ctests of this nature or games such as FarmVille, MafiaWars or PetSociety [\u2026] for many years.\u201d And the problem is not that it is possible, but that it is at the core of Facebook\u2019s business model: making its API available to hundreds of developers around the world so that they may implement segmented marketing campaigns. We were all aware of the situation when we signed the terms and conditions \u2013 without reading them \u2013 and were targeted by blatantly segmented advertising that revealed aspects about ourselves that we may not even have been entirely aware of. I remember an article<\/a> I wrote a few years back in Developing Ideas, along with my colleague Beatriz Moreno, about how the big internet \u201cplayers\u201d were going to have a determining role in shaping political and information agendas. Already then I talked about Facebook\u2019s Instant Articles. But now, years later, the Cambridge Analytica scandal draws an even more unsettling picture since we now know how the votes of 50 million people were manipulated during the recent U.S. presidential election and Brexit referendum. Christopher Wylie, the self-proclaimed \u201cbrains\u201d behind the British firm Cambridge Analytica and principal source of The Guardian<\/a> and The New York Times, explained how he was able to generate the intelligence that influenced both of these elections.<\/p>\n And then we have the troubling revelations<\/a> of Facebook\u2019s Vice President, Andrew Bozworth, which have done nothing but add fuel to the fire. In a 2016 memo entitled \u201cThe Ugly,\u201d he asserted, \u201cThe ugly truth is that we believe in connecting people so deeply that anything that allows us to connect more people more often is \u2018de facto\u2019 good.\u201d Bozworth\u2019s internal memo reveals that they were aware of the physical and social risks Facebook could generate: \u201cMaybe someone dies in a terrorist attack coordinated on our tools,\u201d he continues. \u201cWe connect people. Period. That\u2019s why all the work we do in growth is justified.\u201d<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text – how fb reacted” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n Amid all the turmoil, Mark Zuckerberg\u2019s attitude has been consistently off base. He took longer than he should have to offer his first noncommittal \u2013 and clearly insufficient \u2013 explanation on his Facebook wall. In his first statement, he made implied and vague apologies as he outlined some of the solutions Facebook would implement to protect user data.<\/p>\n [\/et_pb_text][et_pb_image admin_label=”Image 1 post fb” src=”https:\/\/ideasen.llorenteycuenca.com\/wp-content\/uploads\/sites\/6\/2018\/04\/Imagen-1_1000_ENG.png” show_in_lightbox=”off” url_new_window=”off” use_overlay=”off” animation=”off” sticky=”off” align=”left” disabled=”off” disabled_on=”on|on|” force_fullwidth=”off” always_center_on_mobile=”on” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n <\/p>\n [\/et_pb_image][et_pb_image admin_label=”Image m\u00f3vil” src=”https:\/\/ideasen.llorenteycuenca.com\/wp-content\/uploads\/sites\/6\/2018\/04\/Imagen-1_750_ENG.png” show_in_lightbox=”off” url_new_window=”off” use_overlay=”off” animation=”off” sticky=”off” align=”left” disabled=”off” disabled_on=”||on” force_fullwidth=”off” always_center_on_mobile=”on” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n <\/p>\n [\/et_pb_image][et_pb_text admin_label=”Text – by the time” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n By the time he made the statement, U.S. and British authorities were already asking him to testify before Congress and a parliamentary committee. The CEO of Facebook only agreed to the former, and a few days later published a second Facebook post and a video announcing a single interview with CNN. Half the globe was waiting for Zuckerberg to accept responsibility and his response was meek and guarded.<\/p>\n [\/et_pb_text][et_pb_image admin_label=”Image zuckerberg” src=”https:\/\/ideasen.llorenteycuenca.com\/wp-content\/uploads\/sites\/6\/2018\/04\/Video_1000-1.png” show_in_lightbox=”off” url_new_window=”off” use_overlay=”off” animation=”off” sticky=”off” align=”left” disabled=”off” disabled_on=”on|on|” force_fullwidth=”off” always_center_on_mobile=”on” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n <\/p>\n [\/et_pb_image][et_pb_image admin_label=”Image movil – zuckerberg” src=”https:\/\/ideasen.llorenteycuenca.com\/wp-content\/uploads\/sites\/6\/2018\/04\/Video_750-1.png” show_in_lightbox=”off” url_new_window=”off” use_overlay=”off” animation=”left” sticky=”off” align=”left” disabled=”off” disabled_on=”||on” force_fullwidth=”off” always_center_on_mobile=”on” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n <\/p>\n [\/et_pb_image][et_pb_image admin_label=”Image facebook 2″ src=”https:\/\/ideasen.llorenteycuenca.com\/wp-content\/uploads\/sites\/6\/2018\/04\/Imagen-2_1000_ENG.png” show_in_lightbox=”off” url_new_window=”off” use_overlay=”off” animation=”off” sticky=”off” align=”left” disabled=”off” disabled_on=”on|on|” force_fullwidth=”off” always_center_on_mobile=”on” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n <\/p>\n [\/et_pb_image][et_pb_image admin_label=”Image movil facebook 2″ src=”https:\/\/ideasen.llorenteycuenca.com\/wp-content\/uploads\/sites\/6\/2018\/04\/Imagen-2_750_ENG.png” show_in_lightbox=”off” url_new_window=”off” use_overlay=”off” animation=”off” sticky=”off” align=”left” disabled=”off” disabled_on=”||on” force_fullwidth=”off” always_center_on_mobile=”on” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n <\/p>\n [\/et_pb_image][et_pb_text admin_label=”Text – in addition” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n In addition to Zuckerberg\u2019s response, Facebook announced it was taking steps to better protect users\u2019 personal information. In its official blog the company states: \u201cWe\u2019ve heard loud and clear that privacy settings and other important tools are too hard to find and that we must do more to keep people informed.\u201d The company is announcing a \u201cNew Privacy Shortcuts menu\u201d where users can control their data \u201cin just a few taps, with clearer explanations of how our controls work. The experience is now clearer, more visual, and easy-to-find.\u201d<\/p>\n Facebook also has launched, \u201ctools to find, download, and delete your Facebook data\u201d and postponed the launch of its smart speaker, according to Bloomberg.<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text the consequences” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n And now come the consequences for generating a business model that exposes our personal information to blatant manipulation and misuse. At this juncture, whether or not Facebook was aware of what was going on, or whether the company was straightforward or innocent regarding what developers were doing, is mostly beside the point. The truth is probably that this crisis has only just begun for Facebook and the other seven internet giants, which \u2013 according to information published by Cinco D\u00edas<\/a><\/em> \u2013 have already lost a quarter of a billion euros following the Cambridge Analytica revelations. Tech companies<\/a> are certainly taking a hit on the stock market, although surprisingly, Twitter was leading the losses during the second half of March with 21 %, while Facebook fell 18 % (it\u2019s certain that Facebook has started to come back since Zuckerberg testified at the U.S. Congress) and Google\u2019s Alphabet lost 11 %. It is obvious that investors are frightened and fleeing in droves at the prospect of tighter regulation. Nothing cowers like money does.<\/p>\n For a moment, let us imagine this had happened under Europe\u2019s new General Data Protection Regulation, which takes effect in May 2018 and stipulates very significant fines \u2013 up to 4 % of the company\u2019s global annual turnover of the previous financial year.<\/p>\n But there will probably be more consequences. The Cambridge Analytica scandal opens the doors to a frenzy of regulation (certainly in the European Union) and rewriting the rules for large players that make a living from harvesting our personal data. In addition, it has opened a significant trust gap, as Jos\u00e9 Antonio Llorente<\/a>, Chairman and Founding Partner of LLORENTE & CUENCA, pointed out in a recent post<\/a> on LinkedIn.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section admin_label=”section” transparent_background=”off” background_color=”#eaf1e0″ allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” padding_mobile=”off” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off”][et_pb_row admin_label=”row” make_fullwidth=”on” use_custom_width=”off” width_unit=”on” use_custom_gutter=”off” padding_mobile=”off” allow_player_pause=”off” parallax=”off” parallax_method=”off” make_equal=”off” parallax_1=”off” parallax_method_1=”off” column_padding_mobile=”on”][et_pb_column type=”4_4″][et_pb_text admin_label=”Text – what fb should have done” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n Step 1. Ongoing monitoring and analysis<\/strong><\/p>\n After the first alarm went off, following the publication of The New York Times\u2019 and The Guardian\u2019s breaking stories, Facebook should have performed preliminary damage control based on internal evaluation factors stipulated in its crisis management plan (Did said controls even exist? We don\u2019t know). A thorough evaluation should result in a comprehensive plan of action to curtail one of the most important risks affecting a company like Facebook: user data exposure. During a crisis, you must always try to maintain a position of communication leadership, exerting control over the information being published. The important thing is to communicate quickly and effectively to define and direct the conversation. Because if you don\u2019t, the information vacuum will be filled with all sorts of speculation. Every minute that goes by in which you do not communicate your position, you are damaging your reputation and that of your business.<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text step 2″ background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n Step 2. Establish your story<\/strong><\/p>\n Your story should be based on your values, or if your values are the crux of the problem, perhaps it is time to rethink them. Your values should be apparent in the corporate narrative you build to overcome the crisis, in any related claims, and in all the content and materials you produce to reach out to your stakeholders. But what if the problem resides at the core of your business model (such as connecting users to harvest their personal information and release it to third parties)? Obviously, if this is the source of the crisis, you are in trouble because you need to rebuild your entire narrative. It is apparent Facebook is already trying to do this \u2013 their messages clearly follow this trend \u2013 but the problem is, they took too long. By the time the company positioned itself, it had already lost a great deal of credibility and trust. It was late. Way too late.<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text – step 3″ background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n Step 3. Communicate<\/strong><\/p>\n Do not stay silent. Communicate. Do so quickly, but also knowledgeably. You will probably only get one chance to get it right. Remember that everything means something, especially silence. Deciding to keep quiet is probably the worst possible choice. I\u2019ve said so before and I\u2019ll say it again: silence is the fertilizer of rumors and distrust. In fact, it is frequently interpreted as an acknowledgement of guilt. You need to talk. Especially if you are Facebook and social media users are out for your blood. And if you are Mark Zuckerberg, who is so closely identified with his company, you are in trouble. I would tell most clients not to play the Queen in their first chess move. Reserve the CEO for the toughest of times. But in Facebook\u2019s case, the situation was extremely bad from the getgo, and nobody \u2013 not the users, the media, or the government \u2013 was going to settle for anyone other than Zuckerberg himself. Because Mark Zuckerberg is Facebook and Facebook is Mark Zuckerberg. In light of this fact, he decided to publish a couple of things on his Facebook wall, post a video, and grant one interview to CNN days later. When it\u2019s too late to do anything else, the spokesperson \u2013 in this case, the only possible spokesperson \u2013 must seriously consider fully addressing the situation: offer an explanation, apologize, outline how the situation will be fixed, and despite possible reservations, take questions from more than one journalist. And, of course, testify before the U.S. Congress as he has since done.<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text step 4″ background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n Step 4. Mobilize your legal and PR teams<\/strong><\/p>\n This step is not in chronological order; it must be addressed right from the start. Lawsuits can soon make their way to your doorstep, as can economic fines and regulatory changes. These regulatory changes surpass your public image. In fact, Zuckerberg came to realize that appropriate regulations were necessary. Therefore, aligning your organization with a cohesive legal strategy is always a good idea. But beware! Taking legal precautions should never keep you from defending your reputation or continuing to run your business. Remember that the indictment of your reputation and judgment from the media and the public will take place well before anyone is actually put on trial.<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text step 5″ background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n Step 5. Continue to monitor, reevaluate and redefine your strategy<\/strong><\/p>\n Now that Pandora\u2019s box has been opened, Facebook has a long and challenging battle ahead. The present crisis cannot be quickly contained. There is too much at risk from a political and financial standpoint. Facebook will have to remain vigilant and react to any changes by continuously adjusting its strategy and tactics. The crisis will only be contained when they are sure the damage to their business and reputation is no longer growing. However, they must keep an extremely close eye on how things evolve because there are a lot of moving parts that can escape their control\u2026 and reignite the fire.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" [et_pb_section admin_label=”section”][et_pb_row admin_label=”row”][et_pb_column type=”4_4″][et_pb_image admin_label=”Image” src=”https:\/\/ideasen.llorenteycuenca.com\/wp-content\/uploads\/sites\/6\/2018\/04\/Boton_web-ENG-01.png” show_in_lightbox=”off” url_new_window=”off” use_overlay=”off” animation=”off” sticky=”off” align=”left” force_fullwidth=”off” always_center_on_mobile=”on” use_border_color=”off” border_color=”#ffffff” border_style=”solid” url=”https:\/\/ideasen.llorenteycuenca.com\/wp-content\/uploads\/sites\/6\/2018\/04\/180418_DI_Article_Crisis_Facebook_ENG.pdf”] [\/et_pb_image][et_pb_text admin_label=”Text – reasons behind the crisis” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid”] THE REASONS BEHIND THE CRISIS Facebook is not the first social network to collect our personal information, and as users, we cannot honestly claim […]<\/p>\n","protected":false},"author":4,"featured_media":56937,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[86],"class_list":["post-56936","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ideas"],"acf":[],"yoast_head":"\n<\/h2>\n
HOW FACEBOOK REACTED TO THE CAMBRIDGE ANALYTICA REVELATIONS<\/span><\/h2>\n
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THE CONSEQUENCES OF THEIR DECISIONS<\/span><\/h2>\n
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WHAT FACEBOOK SHOULD HAVE DONE<\/span><\/h2>\n