The Facebook Model of Corporate Reputation

06/12/2011 12:38 am

The BBC’s documentary Mark Zuckerberg: Inside Facebook sought to cast light on how users’ data is shared and commoditised by the platform as it nears an anticipated $100 billion floatation.

Its conclusion – that the faith of users rests in a belief in the idealism of Zuckerberg – suggests an organisation whose long-term future is based on very shaky foundations.

However, this is a gross simplification. No responsible organisation (and certainly not one as carefully molded as Facebook) would invest all of its reputational capital in one man.

The guiding principles embodied by Mark Zuckerberg are embedded across the organisation, such as its high level of responsiveness when users raise concerns.

While it may not always be perfect, Facebook represents a new model of corporate reputation that puts the faith of its stakeholders at the heart of its business model.

It’s all too aware that if this reputation is injured its user base could disappear along with its worth.  Therefore, protecting and managing the asset of reputation becomes the key commercial goal for the business.  A goal that is understood by its leader, its employees and its investors.
Intriguingly, Facebook is also evolving the nature of corporate reputation for more traditional businesses. 

By providing a universal channel for customer preferences – positive and negative – Facebook puts the onus on all brands and organisations to take greater care over managing corporate reputation by listening and responding to concerns.

Perhaps the question shouldn’t be ‘can Facebook maintain the faith of its users?’ But rather. ‘how will fortunes be changed for brands that fail to listen to what Facebook users have to say about them?’