StartArticlesThe reputation of companies in crisis due to digital influencers

The reputation of companies in crisis due to digital influencers

In 2024, we have followed many cases involving digital influencers. We witnessed situations of arrests, disclosure of prohibited online games, frauds in raffles and even money laundering. Claro que não podemos generalizar e afirmar que todos os influenciadores digitais atuam de forma antiética e/ou ilegal

Still, we can affirm that many companies that hired the digital influencers who went through the above-mentioned situations suffered damage to their reputation. Quando uma empresa vincula a sua própria imagem ou de seu produto a um influenciador digital significa que ele/ela utiliza de seu poder de influência para divulgar a imagem ou o produto. Everything 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 thatwiththey use in their daily lives. That they are part of your first and only choice in your own daily life. For this reason, companies seek influencers who have the largest number of followers. If the bubble of followers buys into the idea of this connection between the brand or product and the influencer's life, such followers will buy the products and also recommend them in their own professional and personal communities. Thus further increasing the visibility of the brand or product and generating sales conversion, that since the beginning is the objective of the company hiring the digital influencer

Theoretically, companies should hire digital influencers who have values that are synergistic with those of the company itself, even to avoid sounding false in the disclosure. Meanwhile, that has not been what happens. The influencer who is trending at a certain moment is the one chosen by the company's marketing department or the advertising agency for promotion.Of course, there are already companies that work with segmentation in the promotion of their brand and products, act strategically, but that is not what actually happens in most companies

We can draw a parallel with a Brazilian series where the villain promotes Lolaland on social media. In the series, what matters is appearance, likes, sales and money. There is no concern at all regarding consumers and the general public. It means anything goes on social media

It is important to remember that influence refers to the process by which a person or thing exerts effect on opinion, behavior or about the personal values of citizens. This can happen in various 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, as media, politics and culture. The responsibility of the digital influencer goes beyond simple entertainment, she shapes perceptions, influences decisions and can cause real impacts on the lives of followers as a whole

Reputational crises resulting from hiring digital influencers can directly impact companies on various fronts. Partnering with influencers without strategic alignment can result in a loss of credibility, withdrawal of consumers, boycotts and devaluation of the brand or product.Moreover, controversies associated with influencers can go viral (and indeed do go viral), demanding quick answers to contain the damage

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

The compliance process applied to contracts is always effective. The marketing department or the board itself should not proceed with hiring the influencer, even if it is urgent because it is a hit of the moment, without the influencer's company and he himself undergoing a due diligence (reputational analysis) that can be carried out internally by the company's Compliance or by law firms that specialize in these services. The goal is essentially to conduct a detailed analysis of the influencer's history, evaluating your behavior, values and possible previous controversies

Moreover, we also recommend including the legal department in the drafting of the service provision contract. There are a number of points applied in this contract that must be considered by the legal department and the contracting company in order to prevent risks. A well-drafted contract may even include obligations to be fulfilled by the influencer in the event of a potential crisis

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

Conclusion, companies need to be even more cautious when hiring digital influencers. I understand that most companies do not want, no way, miss out on taking advantage of an excellent moment of an influencer who is trending in the market. After all, companies want to sell and make a profit. And social media allows the conversion of influence into purchases. Each like is worth a lot. But, reputational risks exist and cannot be underestimated. The profit of this month can be the loss of the next

Patricia Punder
Patricia Punderhttps://www.punder.adv.br/
Patricia Punder, lawyer and compliance officer with international experience. Compliance professor in the USFSCAR and LEC post-MBA program – Legal Ethics and Compliance. One of the authors of the "Compliance Manual", launched by LEC in 2019 and Compliance – besides the 2020 Manual. With solid experience in Brazil and Latin America, Patricia has expertise in the implementation of Governance and Compliance Programs, LGPD, ESG, trainings; strategic analysis of risk assessment and management, management in handling corporate reputation crises and investigations involving the DOJ (Department of Justice), SEC (Securities and Exchange Commission), WATER, CADE and TCU (Brazil). www.punder.adv.br
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