Undermining Truth: The Rise of Fake News
Date: 2020-09-21
Source: https://craigwright.net/blog/economics/undermining-truth-the-rise-of-fake-news
Truth in advertising is
something that many people would call an oxymoron, but with the advent of
social media, we have become even more cynical, and it has become common to see
the promotion of more than questionable content. Di Domenico & Visentin
(2020) explore the nature of fake news and problematic information in their
article entitled *Fake news or true lies? Reflections about problematic
contents in marketing*.
The authors investigate a multidisciplinary study of
multiple scientific papers and managerial reports as a meta-analysis. They use
the definition of fake news described by Allcott & Gentzkow (2017, p. 213) as
something that goes beyond mere “bullshit”, whose originators fail to care
whether it is true or not (Frankfurt 2005). Here, they are defining fake news as
something that is intentionally and verifiably false. Fake news or “true lies”
are not merely the result of poor research, but, more accurately, one of promoted
activities which are intentionally designed to mislead.
The researchers demonstrate that misleading content
has been spreading virally at an increasing rate. Technology is promoting not
only access to information, but the ability to create ‘cheap fake’ and ‘deep
fake’ counterfeit information. It is noted that it becomes simpler to promote conspiracy
theories. The ease at which companies can now create and spread false
information is leading to an information pandemic that could be more dangerous
than viral epidemics. The negative impact of such misleading pseudo-knowledge undermines
the valid trust that responsible organizations have built over the years.
Such reports are valuable.
The concept of conscious capitalism (Mackey & Sisodia 2014) is one that
requires trust in organizations. If people are to be part of a process that
builds a healthier and more resilient society, they need to be able to believe
and trust in the process. Suppose consumers cannot believe in the organizations
that they seek to invest in or to buy products from. The scenario is likely to
end with a race to the bottom. For a brand to differentiate itself and to
expend extra capital on creating a sustainable product, people need to see the
benefits available—and not have them diminished through sham offerings and
counterfeits that are unlikely to provide benefits such as sustainable
sourcing. Although it is possible to set up an exploitative business that is
profitable in the short term, consumers will generally reject the offerings,
leaving the company or product, once the consumer comes to understand that they
are being exploited, to fail.
The research
delves into a wide meta-analysis of articles on fake news and other problematic
information. In doing so, the paper provides a means to investigate how
marketing can increase the awareness of sham information, amongst both
consumers and marketers. We could see that the research is particularly cogent when
it comes to vulnerable consumers. If a business is to be perceived as trustworthy
by the communities they serve, the business needs to be recognised and judged
based on true actions; not through the falsely promoted sham material that is
being advertised on many social media platforms. Where organizations allow fake
news and fake promotions, they allow for the erosion of trust in responsible
business. Such attrition in confidence occurs because acting for the long-term
creation of profit requires short-term investments that will not be returned if
nefarious actors can undermine them.
Palmer and Hedberg
(2013) make a note of the moral and ethical problems associated with marketing
to the vulnerable. In an age of fake news and counterfeit information, it
becomes all the more simple for [hucksters ]()to take advantage of
outlying aspects of the community and, in doing so, to erode away the waning
confidence that many people have in our capitalist society. But it’s not just
society. Individual corporations need to take charge of the message that is
being conveyed about their brand. Failure to control fake news, while allowing misinformation,
significantly erodes brand equity (Berthon & Pitt 2018).
The results are
not all negative. Companies, if they maintain substantial brand control and
actively and aggressively fight fake news, can turn marketing threats into an
advantage. Organizations such as Unilever have recently taken a stand against
fake news and promotion of hatred on Facebook (Hern 2020). Such moves form an
essential part of ensuring that stakeholders pressure social media companies
into adopting stringent standards to improve the quality of news and
information that they distribute. Most offerings involving criminal activity
and fake news are subject to economic forces, and as the cost of providing fake
news increases, the quantity is likely to decrease (Wright 2012). The actions
taken by Unilever are laudable, and others join them in fighting to mitigate
false information. In doing so, we promote honest business and ensure that the
susceptible are not exposed. By acting together in opposing fake media, it
becomes more straightforward and less expensive for responsible organizations
to maintain their brands.
References
Allcott, H. Gentzkow, M. 2017. Social
media and fake news in the 2016 election. Journal of Economic Perspectives,
31(2), 211–236. doi:10.3386/w23089.
Berthon, P.
R. Pitt, L. F. 2018. Brands, truthiness and post-fact: Managing brands in a
post-rational world. Journal of Macromarketing, 38, 218–227. Available
at: https://doi.org/10.1177/0276146718755869,
last accessed 2020/09/18.
Di Domenico, G. Visentin, M. 2020.
Fake news or true lies? Reflections about problematic contents in
marketing. International Journal Of Market Research, 62(4),
409-417. doi:10.1177/1470785320934719.
Frankfurt,
H. 2005. On Bullshit. Princeton, NJ: Princeton University Press.
Hern,
A. 2020. Third of advertisers may boycott Facebook in hate speech revolt. Available
at: https://www.theguardian.com/technology/2020/jun/30/third-of-advertisers-may-boycott-facebook-in-hate-speech-revolt, last accessed 2020/09/18.
Mackey, J. Sisodia, R. 2014. Conscious
Capitalism, With a New Preface by the Authors. Boston: Perseus Book LLC (Ingram).
Palmer, D. Hedberg, T. 2012. The
Ethics of Marketing to Vulnerable Populations. *Journal Of Business
Ethics*, 116(2), 403-413. doi: 10.1007/s10551-012-1476-2.
Wright, C. 2012. Criminal Specialization as
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doi: 10.1115/1.859971.paper29.