Firms face rising threat of misinformation to reputation

A strategic communications firm, Fire on the Hill, and a full-service advanced analytics firm, Mercury Analytics, have conducted a joint study on the negative impact of misinformation and disinformation on corporate reputations worldwide. The research reveals that 60% of firms have previously suffered adversely due to mis- or disinformation.

Of the affected companies, 11% noted substantial negative impact due to misinformation or disinformation, highlighting the degree of concern for companies across the globe. Even the 40% of companies that have not yet been directly impacted revealed apprehension, with over 7 in 10 respondents indicating concern about their company's reputation potentially being negatively impacted by misinformation.

Chris Clarke, Co-Founder of Fire on the Hill, said, "Much of the current focus around mis- and disinformation centres on the political and social sphere, but we are seeing companies and economic interests increasingly targeted. The results are a wake-up call for companies everywhere."

Clarke emphasised that misinformation is a new frontier of corporate reputation management and urges that it should be high on the agenda for board-level decision-makers. He claimed, "Only by understanding the nature of the threats can we begin to take steps towards mitigation."

The study also provided further insights, highlighting that upper management is more aware of the risks associated with mis- and disinformation. It showed that 69% of respondents in upper management actively seek methods of prevention, compared to 55% in lower management.

Respondents identified brand reputation as the primary area of potential negative impact due to misinformation, at 66%, followed by customer expectations (56%), company revenue and employee retention (41% each), disruption of daily operations (36%), and company stock prices (32%).

Interestingly, while AI is seen as a vehicle accelerating the propagation of mis- and disinformation, it is also seen as part of the solution. Two-thirds of respondents expressed some concern that AI would increase the speed and ease of spreading mis- and disinformation. Similarly, two-thirds were at least somewhat comfortable with using AI to tackle any problems relating to mis- and disinformation on company reputation.

Jordan Kraft, Partner and Chief Strategy Officer at Mercury Analytics, said, "Our study shows that most organisations are concerned about the potential effects of mis- and disinformation. This is why we are increasingly working with organisations on rapid response projects to test messaging before it goes live, deliver insights needed to respond effectively when crises hit, and to truly understand customer and stakeholder opinions and attitudes to key issues that can be a focus for mis- and disinformation campaigns."

The study aimed to gauge business awareness of the risks surrounding mis- and disinformation, the potential for damage, and strategies to mitigate harm. The findings help to better understand the challenges misinformation presents to corporate reputation, the extent to which companies have been impacted so far, where threats are emerging from, and potential actions to reduce impact.