Technology and Brands, Part IV: Nestle’s PR Nightmare

I realize that my last few posts have discussed the benefits of social media while only briefly touching on the risks. No individual or business should jump into a new form of communication technology without understanding the damage that it could cause if executed poorly.

Earlier today, Nestle provided the perfect case study for what not to do in social media. The incredibly nerdy yet fitting Star Wars reference in “Nestle’s Facebook Page: How a Company Can Really Screw Up Social Media“ adequately summarizes the double-edged blade of social networking: “Like the Force, Facebook can be a powerful ally — but beware the Dark Side. [. . .] A big company can land itself in a PR nightmare in a matter of minutes, all thanks to the power of social media.” Nestle had been the center of negative attention before this morning because of accusations about destroying rain forests, promoting misleading information about formula-feeding babies, and using forced child labor, but Nestle’s Facebook actions dumped gasoline on the fire.

Nestle’s original post at 2:26 AM told its fans, “To repeat: we welcome your comments, but please don’t post using an altered version of any of our logos as your profile pic – they will be deleted.” Several of Nestle’s Facebook “fans” were using parodies of

One Facebook user's profile image (a parody of Nestle's Kit Kat logo)

Nestle’s brand logos to protest their use of palm oil from companies that are “trashing Indonesian rainforests, threatening the livelihoods of local people and pushing orang-utans towards extinction.” Paul Griffin commented by calling Nestle’s post “a bit ‘big brotherish,’” which apparently got on the Nestle page monitor’s last nerve. Nestle responded rudely (see screen shot on the right), and anger on both sides escalated quickly. Protestors seized the opportunity to convince others to boycott Nestle brands, and the Facebook page is now covered in a mess of anti-Nestle comments.

Facebook isn’t the only modern communication outlet with a dark side. When Nestle tried organizing the Nestle Family blogger event in 2009, Twitter and blogs exploded with negativity. Many companies try building an online presence through social networking sites and blogs without doing enough research on how their presence will be received. Nestle is the fourth most boycotted company (after Nike, Coca Cola, and McDonald’s). Social media has potential for Nestle as a way to directly answer questions and address concerns from consumers, but Nestle needs to expect in social media the same hostility that they face in the real world, if not more. Social media professionals should know better than to get emotionally involved and respond harshly to consumers, especially in such a public arena. Regardless of the excuses Nestle’s page monitor is feeding his/her boss right now, Nestle has some serious damage control on its hands.