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Technology has provided limitless advantages to businesses across the globe and is important to their growth. Today, data might be shared at breakneck speeds amongst corporations, 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, in addition to 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 will probably also cause severe damage to enterprises and entrepreneurs who depend on their status and credibility. It’s critical, then, for them to grasp the risks of misinformation, the right way to avoid participating in its spread and the right way to lessen the damage it will probably cause to an expert 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 specific danger to small corporations: They often lack teams of selling and public relations professionals to take care of such issues and so are more vulnerable to resulting disruptions, loss of shoppers, negative press, reduced revenue and legal consequences.
Let’s explore just a few effects in additional detail:
- Reputation damage: Entrepreneurs depend, after all, upon the honesty and integrity of their brands within the minds of shoppers, investors and partners. Misinformation can tarnish these assets, eroding the trust that is been so hard to ascertain. This might be especially difficult for a small business to handle because it likely cannot distance itself from an owner or other principal, for instance, in a way that a big organization is perhaps more able to.
- Poor decisions: Falling for false data/narratives regarding market trends or what’s happening with competitors could lead on an entrepreneur to make a poor staffing, sales or customer support move, with potentially disastrous consequences.
- Loss of shoppers: 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 a couple of business or individual can result in defamation lawsuits, amongst other dangers.
Related: AI Isn’t Evil — But Entrepreneurs Need to Keep Ethics in Mind As They Implement It
How to combat it
As a small business owner, you’re likely solely answerable for addressing inaccurate details about your organization, customers and suppliers, and having a method in place to achieve this can significantly reduce adversarial effects. The correct 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 example, within the Battle of Constantinople in 1453, mysterious lights were seen over town. Word quickly spread that they were an indication from the heavens that the Ottomans can be defeated in battle. It seems what was witnessed was nothing greater than St. Elmo’s Fire, a natural and harmless phenomenon through which ionized plasma looks like a bluish flame.
If the misinformation you’re 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. Another historical example involves Benjamin Franklin, who in 1782 created a fake version of the Boston Independent Chronicle newspaper. Within, 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 might have to go on the offensive to remain ahead of intentionally malicious storytelling. This might include launching a PR campaign or hiring an attorney.
Of course, the very best technique to eliminate misinformation is to avoid it altogether. At the very least, you possibly can minimize damage by catching it early. Here are some best practices that entrepreneurs can apply to achieve this:
- 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 at the very least two reputable sources. It’s much easier to stop misinformation before it starts than to place the genie back within the bottle.
- Build a solid status: Businesses known for being honest, trustworthy and ethical are less more 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. If you run a shady operation, persons are more more likely to act upon something bad they heard, while those that know you run an upstanding enterprise might be more 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 an individual. Consider establishing Google Alerts to be notified of such recent content.
Related: 7 Tips for Making Quality Business Decisions
