Viral Racism Controversies: The Misinformation Risks for Brands
Key Findings
Small businesses and large corporations alike can find themselves in serious trouble if they use racist language or imagery, creating opportunities for misinformation and disinformation to take hold. Not only is this behaviour unacceptable, but it also damages a brand’s reputation—especially in an era where customers can easily record and share content on social media. Once online, misinterpreted news or actual unethical practices can spread like wildfire, amplifying the fallout.
Here are some examples:
- Mixue’s outlet in Sri Sinar, Kuala Lumpur faced backlash over a racist job advertisement. Although it was removed at the physical premise, the online comments were rampant with many criticising the shop for its insensitivity
- Racist business practices aren’t new. In 2014, Old Town White Coffee was caught for posting an offensive advertisement.
- These incidents extend beyond coffee shops. BodyShop was criticised for insensitivity after posting a discriminatory ad.
- A recent video of a Sepang corn seller displaying a sign about refusing to sell to Indians sparked widespread outrage. Following backlash, the stall owner issued an apology.
- A viral rant by a Chinese businessman about not hiring Malays for their work attitude fueled discussions about workplace discrimination.
Who It Affects
Any company or small business with a physical storefront, particularly those in high-footfall shopping malls, should be mindful of its public presence. Similarly, businesses that rely heavily on customer engagement, such as e-hailing services, are also at risk. Examples include:
- Food and beverage: McDonald's, KFC, Mixue, Old Town White Coffee
- Retail and fashion: H&M, Zara, Guess
- Ride-sharing businesses: Grab, Bolt, AirAsia Move
- Beauty and personal care: Bodyshop, Dove
Why It Matters
- Public Backlash:
- Social media allows for rapid dissemination of information. Racist content can quickly go viral, triggering widespread public outrage and boycotts.
- False information
- Rivals or disinformation agents can take the opportunity to shape narratives and post falsehoods
- Investor Concerns:
- Investors are also sensitive to social responsibility. Companies with a reputation for racism may be seen as high-risk investments.
- Hate Speech Regulations:
- Depending on the jurisdiction, racist content may violate hate speech laws, resulting in legal action.
Trends & Developments
In today's interconnected world, companies are held to higher standards of social responsibility.
Racism is not only morally wrong but also a significant business risk.
Mixue, Old Town White Coffee, BodyShop and the corn seller apologised but only after public outrage. That’s simply not enough.
Offensive content can be captured in an instant and spread quickly to online community platforms like Reddit, X and Instagram - gaining traction for all the wrong reasons.
Building a diverse and inclusive business is not only the right thing to do, it is also good business.
Social media users’ relentless demand for accountability leaves little room for error, and companies must recognise the vulnerability of their reputations in this hyperconnected environment.
What We Anticipate & Opportunities
If left unchecked, viral social content will drive negative sentiment against any brand, escalating consumer distrust.
Brands that rely on social media growth, must nip these errors in the bud to avoid opening the door for competitors to gain ground.
Responding responsibly minimises misinformation or disinformation threats from rivals or those with malicious intent.
The impact of misinformation can be significant, and Faqcheck is here to help you, we customise strategies for:
- Building Brand Trust: Foster credibility with engaging, fact-verified content.
- Accurate Content Assurance: Publish with confidence, knowing every piece is thoroughly verified.
- Misinformation Defense Training: Empower your team to effectively address and counter false information.
- Fake News Brand Monitoring: Stay ahead of misinformation with instant updates and our upcoming AI-driven tool.
