Corporate reputation in crisis due to digital influencers

In 2024, we followed many cases involving digital influencers.We witnessed situations of arrests, dissemination of prohibited online games, fraud in sweepstakes and even money laundering. Of course we can not generalize and state that all digital influencers act unethically and/or illegally.

However, we can say that many companies that hired the digital influencers who went through the above mentioned situations suffered a shake in their reputation. When a company links its own image or its product to a digital influencer means that he/she uses its power of influence to disseminate the image or the product. Anything that happens negatively in the life of the digital influencer will automatically be linked to the image or product of a company.

After all, the role of the digital influencer is to promote brands and products to their own audience, indicating that if they use it in their daily lives. That they are part of their first and only choice in their own daily life. For this reason that companies seek influencers who have the largest number of followers. If the bubble of followers buy the idea of this link between brand or product with the life of the influencer, such followers will buy the products and also indicate in their own professional and personal communities. Thus further increasing the visibility of the brand or product and generating sales conversion, which from the beginning is the goal of the hiring company of the digital influencer.

Theoretically, companies should hire digital influencers who have synergistic values to those of the company itself, even to not sound false disclosure. However, this has not been what happens. The influencer who is on the wave at a certain time is the chosen by the marketing department of the company or the advertising agency for disclosure. Of course there are already companies that operate with segmentation of the disclosure of their brand and products, act in a strategic way, but it is not what actually happens in most companies.

We can make a parallel with a Brazilian series where we have the villain promoting Lolaland on social networks. In the series, what counts is the appearance, likes, sales and money. There is not the slightest concern about consumers and the general public.

It is important to remember that influence refers to the process by which a person or thing exerts an effect on the opinion, behavior or personal values of citizens. This can occur in several ways, including persuasion, for example, authority or social pressure. Influence is a dynamic force present in various spheres of life, from everyday interactions to broader contexts, such as media, politics and culture. The responsibility of the digital influencer goes beyond simple entertainment, it shapes perceptions, influences decisions and can cause real impacts on the lives of followers as a whole.

Reputational crises arising from the hiring of digital influencers can directly impact companies on several fronts. Associating with influencers without strategic alignment can result in loss of credibility, consumer withdrawal, boycotts and devaluation of the brand or product.In addition, controversies associated with influencers can go viral (and indeed viralize), requiring quick responses to contain the damage.

Due to the above, we recommend that some steps be taken within companies before hiring digital influencers. Since prevention always comes cheaper than remediation.

The compliance process applied to the hires are always effective. The marketing department or the governing body itself should not go ahead in hiring the influencer, even if it is urgent because it is a hit of the moment, without the influencer's company and himself going through a due diligence (reputational analysis) that can be performed internally by the company's own Compliance or by law firms that act strongly in these services. The objective is essentially to conduct a detailed analysis of the influencer's history, evaluating their behavior, values and possible previous controversies.

In addition, we also recommend the inclusion of the legal in the preparation of the service contract. There are a number of points applied in this contract that must be considered by the legal and the contracting company in order to prevent risks. A well-designed contract may even contain obligations to be performed by the influencer in case of a possible crisis.

The last point would be the continuous monitoring of the influencer during and after a period at the end of the hiring. In case of crises it is vital that the company and the influencer or the company manager maintain an agile and transparent communication, demonstrating commitment to ethics and responsibility.

Conclusion, companies have to be even more cautious in hiring digital influencers. I understand that most companies do not want to, by any means, fail to enjoy an excellent moment of an influencer who is on the rise in the market. After all, companies want to sell and make a profit. And social media allow the conversion of influence into purchases. Each like is worth a lot. But, reputational risks exist and can not be overlooked. This month's profit may be the loss of the next.