Legal Exposure and Reputation Management

Legal Exposure and Reputation Management

Facebook is one instance of a business that lately has had to control its reputation because of legal risk. In 2019, the Cambridge Analytica controversy brought the industry under heavy scrutiny for how it handled customer data. The issue concerned the unlawful collection of personal information from millions of Facebook users by a consultancy company hired by Donald Trump’s 2016 campaign.

Potential privacy and data protection legislation violations and legal action from impacted users were among the legal concerns surrounding the affair. Regulators like the US Federal Trade Commission (FTC) also considered the business and imposed fines.

To address the issue, Facebook’s PR staff concentrated on being open and honest, accepting responsibility, and announcing new initiatives to strengthen user data security to minimize legal risks. The business apologized to the public and admitted that it mishandled consumer data. To give consumers more control over their data, the firm also announced that it would be introducing new policies and tools. One such tool will make it simple for users to manage the apps linked to their Facebook accounts. The PR team also highlighted the company’s recent initiatives to strengthen data security and safeguard users’ personal information, including hiring a chief privacy officer, increasing openness, and disseminating more information about how user data is utilized.

In this case, the infringement of data protection and privacy rules, potential legal claims from impacted users, and regulatory body investigations were all legal considerations. By being open and accountable, announcing new measures to strengthen user data security and give them more control over their data, and emphasizing further actions the company was taking to enhance data security and safeguard user’s personal information, the PR team was able to mitigate these problems.

Reference

Cambridge Analytica and Facebook: The Scandal and the Fallout So Far/nytimes.com/2018/04/04/us/politics/cambridge-Analytica-scandal-fallout.html

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General managers (GMs) are typically the liaison between executives and staff. While not in charge of the organization itself, the GM still has a responsibility to ensure their direct reports are following legal guidelines and they need to mitigate risks; however, there are times when incidents happen, and the executive team needs to mitigate the legal exposure through public relations (PR).

Legal Exposure and Reputation Management

Search the internet for an event that occurred within the last 5 years in which a company has needed to manage its reputation due to legal exposure. Summarize the incident and answer the following questions in your post:

• What were the legal issues?
• How did the PR team mitigate the legal issues?