¹Jesse H. Jones Graduate School of Management, Rice University, Houston, TX, USA

Abstract

In major organizations today, senior management is increasingly apprehensive about the threats to company reputation from Internet criticism and rumor rapidly spreading through online communities. We believe the source of the threat lies in the emerging culture of the Internet, which has been largely ignored by practitioners and academics alike. In particular, the Internet has fundamentally altered the notion of authority. Where it once vested in the few, authority has now become the claim of many, who are empowered and emboldened by the Internet. Managing damage to company reputation, however, requires more than adapting traditional media relations to the Internet. In addition, we believe it requires business leaders to re-invigorate their connections with customers and encourage their employees to speak to customers directly and forthrightly about their own work, plans and aspirations related to company's products and services.