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Technology has provided infinite advantages to businesses across the globe and is significant to their growth. Today, data will be shared at breakneck speeds amongst firms, their leaders, vendors and customers, but this also allows inaccurate and false information to spread at the identical rate, most recently by bots powered by artificial intelligence. It has metastasized in society broadly and the web specifically — whether in the shape of social media feeds/online forums, as well as in news articles and other traditional media. Much of it’s intentional, including attempts to mislead consumers and gain a competitive advantage.
While this often affects individuals personally, it could also cause severe damage to enterprises and entrepreneurs who rely on their popularity and credibility. It’s important, then, for them to understand the risks of misinformation, how to avoid participating in its spread and the way to lessen the damage it could cause to a skilled and private brand.
How misinformation negatively impacts small businesses
Whether it is available in the shape of rumors, hoaxes, fake news or misleading narratives, misinformation represents a particular danger to small firms: They often lack teams of promoting and public relations professionals to take care of such issues and so are more prone to resulting disruptions, loss of consumers, negative press, reduced revenue and legal consequences.
Let’s explore a few effects in additional detail:
- Status damage: Entrepreneurs depend, in fact, upon the honesty and integrity of their brands within the minds of consumers, investors and partners. Misinformation can tarnish these assets, eroding the trust that is been so hard to establish. This will be especially difficult for a small business to address because it likely cannot distance itself from an owner or other principal, for instance, in a way that a large organization could be more able to.
- Poor decisions: Falling for false data/narratives regarding market trends or what’s happening with competitors may lead an entrepreneur to make a poor staffing, sales or customer support move, with potentially disastrous consequences.
- Loss of consumers: Incorrect/misleading information can drive away existing and potential customers, who, understandably, fear doing business with an enterprise or individual related to it.
- Legal ramifications: Deliberately disseminating misinformation about a business or individual can lead to defamation lawsuits, amongst other dangers.
Related: AI Is not Evil — But Entrepreneurs Need to Keep Ethics in Mind As They Implement It
How to combat it
As a small business owner, you might be likely solely liable for addressing inaccurate details about your organization, customers and suppliers, and having a strategy in place to accomplish that can significantly reduce antagonistic effects. The right response will rely on the kind and severity of the misinformation being shared — each situation likely requires a customized solution.
Remember, too, that some incidents could also be nothing greater than misunderstandings. For instance, within the Battle of Constantinople in 1453, mysterious lights were seen over town. Word quickly spread that they were a sign from the heavens that the Ottomans could be defeated in battle. It seems what was witnessed was nothing greater than St. Elmo’s Fire, a natural and harmless phenomenon by which ionized plasma looks like a bluish flame.
If the misinformation you might be coping with is analogously harmless, you possibly can address it by simply taking responsibility — issuing an apology or otherwise setting the record straight. Businesses that show accountability will almost all the time come out on top.
Related: 7 Ways to Promote a Company Culture of Accountability
In other cases, misinformation is intentionally malicious. One other historical example involves Benjamin Franklin, who in 1782 created a fake version of the Boston Independent Chronicle newspaper. Inside, a false story claimed that the British had hired Native Americans to terrorize American soldiers and civilians across the frontier. Before long, it had been republished throughout the colonies, sparking increased hostility toward Native Americans.
In severe cases, a business may have to go on the offensive to stay ahead of intentionally malicious storytelling. This might include launching a PR campaign or hiring an attorney.
After all, one of the best ways to eliminate misinformation is to avoid it altogether. On the very least, you possibly can minimize damage by catching it early. Listed here are some best practices that entrepreneurs can apply to accomplish that:
- Fact-checking and other verification: Before sharing information on web sites, social media profiles or other media, entrepreneurs must be vigilant to fastidiously fact-check it, ideally from not less than two reputable sources. It’s much easier to stop misinformation before it starts than to put the genie back within the bottle.
- Construct a solid popularity: Businesses known for being honest, trustworthy and ethical are less likely to be impacted by misinformation. Half the battle lies within the degree to which persons are inclined to consider the negative thing they’re presented with. In case you run a shady operation, persons are more likely to act upon something bad they heard, while those that know you run an upstanding enterprise shall be more likely to come to your defense.
- Monitor your online presence: A superb practice for catching misinformation before it spirals uncontrolled is to repeatedly monitor online mentions related to your enterprise otherwise you as a person. Consider organising Google Alerts to be notified of such recent content.
Related: 7 Suggestions for Making Quality Business Decisions