How social media can damage a company’s reputation – and how to address it

By October 2025, social media had reached 5.66 billion active user identities worldwide, effectively placing corporate reputation in front of most of the planet. In 2026, that exposure has turned reputation into a real-time risk, with crises capable of igniting and escalating across global platforms in a matter of hours.

Whether organisations acknowledge it or not, social media can have a tremendous impact on non-tangible assets like reputation…

Reputation has become increasingly significant, driven by the lightning speed at which information spreads and the growing dominance of intangible assets in company valuations.

According to 2024 research from Brand Finance, intangible assets owned by the world’s largest companies reached an all-time high of $79.4 trillion, representing a 28% increase from 2023. Ocean Tomo estimates intangibles rose from about 17% of S&P 500 market value in 1975 to about 90% by 2020. This dramatic shift illustrates the growing importance of reputation.

Despite this reality, many organisations remain underprepared. In Aon’s 2025 global risk survey, damage to reputation or brand ranks in the global top 10, while over 63% of a company’s market value is attributed to reputation according to recent Weber Shandwick research, the gap between awareness and preparedness persists. Organisations continue to underestimate the speed, virality, and lasting impact of social media-driven reputation crises.

The acceleration of reputation risk

In recent years there have been stark lessons about how quickly social media can damage organisational reputations. Several high-profile cases demonstrate the velocity and severity of modern reputation crises.

Kellogg’s ‘cereal for dinner’ misstep (2024)

When Kellogg’s CEO Gary Pilnick suggested families eat cereal for dinner to save money during rising inflation, social media erupted. Critics compared his comments to Marie Antoinette’s infamous “let them eat cake,” and the hashtag #BoycottKelloggs trended across TikTok. The company’s initial silence allowed the backlash to spiral unchecked, demonstrating how executive communication that seems reasonable in a boardroom can be received as tone-deaf condescension when amplified through social platforms.

Delta Airlines’ uniform policy controversy (2024)

In July 2024, Delta faced severe backlash when its social media team responded to photos of flight attendants wearing small Palestinian flag pins. After a user called them “Hamas badges,” Delta’s official account replied, “I hear you as I’d be terrified as well.” The internet exploded with accusations of anti-Palestinian bias and calls for boycotts. The incident highlighted how poorly trained social media teams can inflict massive reputational damage in seconds with a single ill-considered response.

The British Museum’s meme misfire (2024)

In March 2024, the British Museum sparked outrage when it posted a video suggesting single women visit its Roman Army exhibition and “walk around looking confused” to attract male attention. The post, attempting to capitalise on a TikTok trend about men thinking about the Roman Empire, was immediately criticised as sexist and tone-deaf. Rather than apologising quickly, the museum initially defended itself in the comments, explaining that mansplaining was “the butt of the joke.” This defensive response only intensified the backlash from archaeologists and academics on social media. The museum eventually deleted the post and apologised, but not before the crisis spiraled into a broader conversation about institutional sexism and poor social media judgment.

Apple’s ‘crush’ ad backlash (2024)

Apple’s 2024 iPad Pro advertisement featured a hydraulic press crushing musical instruments, paint, and creative tools, a metaphor for how the iPad could replace them all. The creative community that Apple had cultivated for decades responded with outrage on social media. Artists and musicians described the ad as “soulless” and “an affront” to creativity. Despite Apple’s long-standing position as the choice for creatives, this single video damaged relationships the company had spent years building.

Jaguar’s rebrand controversy (2024-2025)

British luxury carmaker Jaguar unveiled a radical rebrand in November 2024 with a promotional video featuring androgynous models in avant-garde outfits and the slogan “Copy Nothing,” but no cars. The campaign drew massive attention online and sparked widespread backlash, including mockery from Tesla CEO Elon Musk, who asked, “Do you sell cars?” The episode illustrates how rebrands can become flashpoints for broader cultural debates, with reputational consequences far beyond the original creative intent.

The AI revolution: Deepfakes and disinformation

Perhaps the most dramatic evolution in social media reputation risk has been the rise of AI-generated content, particularly deepfakes. This technology has moved from theoretical concern to operational weapon in the hands of fraudsters and reputation attackers. 

Online deepfake content exploded from 500,000 files in 2023 to a projected 8 million by the end of 2025, a 900% annual increase, according to cybersecurity firm DeepStrike. Edelman’s 2024 Crisis & Risk research shows a large majority of executives are concerned about reputational damage from AI-driven disinformation, while many admit they are not adequately prepared.

Reputation damage beyond financial loss

Deepfakes create a two-front battle for reputation management. Organisations must defend against false negative content while maintaining trust in authentic positive content.

A 2025 iProov study found that only 0.1% of participants correctly identified all fake and real media shown to them. “Even when people do suspect a deepfake, our research tells us that the vast majority of people take no action at all,” said Andrew Bud, founder and CEO of iProov. “Criminals are exploiting consumers’ inability to distinguish real from fake imagery, putting our personal information and financial security at risk.”

Social media posts by employees can have damaging effects on an organisation’s reputation as well…

While external attacks and customer-facing crises dominate headlines, employee social media posts remain a persistent and often underestimated source of reputation risk. The line between personal expression and professional representation has blurred considerably, and the consequences can be severe for both individuals and their employers. For example, many businesses are looking at ways to manage the emerging risks associated with employees using TikTok.

The reality of employee-driven reputation risk

Employees increasingly use social media to comment on contentious social and political issues, sometimes with direct implications for their employers. In 2024, New York University suspended several employees following social media posts related to the Israel–Gaza conflict, with at least one case resulting in a contested termination. These cases illustrate how employers walk a tightrope between protecting their reputation and respecting employee speech rights. 

In another 2024 incident, a Chick-fil-A employee went viral on TikTok with enthusiastic reviews of menu items, garnering thousands of followers and millions of views. Rather than capitalising on this organic brand advocacy, Chick-fil-A enforced its policy forbidding employees from creating company-related content and shut down the videos. Competitor Shake Shack immediately partnered with the same creator, transforming Chick-fil-A’s rigid policy enforcement into a public relations win for a rival.

The importance of clear social media policies

For organisations to protect their reputations in situations involving employee social media use, it is vitally important they have a written code of conduct. Without clear policies, employees may not consider the risks their posts pose to their employer. Furthermore, terminating an employee for social media activity without an established code of conduct could expose the company to wrongful termination lawsuits, further eroding public perception.

Effective social media policies should:

• Clearly define what constitutes acceptable and unacceptable social media behavior
• Explain the potential consequences of policy violations
• Provide guidance on separating personal opinions from employer association
• Respect protected concerted activity under labor laws
• Be regularly updated to reflect evolving platforms and norms

Employees who wish to post about their personal lives or express views on particular issues should refrain from mentioning their employer or sharing company posts. Once a link is established between an individual and their organisation online, that individual must exercise heightened caution about all future content.

How organisations can protect themselves

As social media influence and the inherent value of reputation continue to grow, organisations must adapt their strategies for safeguarding public perception. This challenge intensifies as digital-native generations gain purchasing power and influence.

Having a robust system for identifying, assessing, and managing both risks and opportunities is essential for risk managers. Modern risk management must integrate reputation risk into strategic planning, not treat it as an afterthought.

Effective management goes beyond avoiding negative outcomes. It helps organisations make decisions that lead customers, employees, and stakeholders to actively support the company publicly. The goal is helping the company succeed, not merely avoiding failure.

Invest in social media monitoring and response capabilities

The social media crisis management services market reached $1.88 billion in 2023 and is projected to grow at over 21% annually through 2032, according to Global Market Insights. This growth reflects the urgent need for sophisticated monitoring, rapid response, and effective crisis containment.

Nearly three-quarters of consumers expect brands to respond on social media within 24 hours or sooner. Organisations need:

• Real-time monitoring across all relevant platforms
• Pre-approved crisis response protocols
• Trained teams authorised to respond quickly
• Clear escalation paths for different crisis severities
• AI-powered analytics to detect emerging threats

Prepare for AI-driven threats

Organisations must take deepfakes and AI-generated disinformation seriously. This requires:

• Implementing robust verification protocols for high-risk transactions and communications
• Training employees to recognise deepfake indicators and suspicious requests
• Establishing authoritative digital presences across verified platforms
• Monitoring for fraudulent content impersonating executives or spokespeople
• Preparing crisis communication plans specifically for deepfake incidents
• Investing in AI-powered detection tools to identify synthetic media

Foster a culture of reputation awareness

Every employee should understand that they are potential brand ambassadors or detractors. Organisations should:

• Provide regular training on social media best practices and policies
• Cultivate engaged workers who understand the company’s values and reputation
• Create channels for employees to raise concerns before they become public issues
• Empower employees to be positive brand advocates on social media
• Conduct continuous learning through case studies and incident analysis

Major takeaways

In 2026, reputation is no longer a soft asset, it’s a quantifiable driver of corporate value representing up to 90% of enterprise worth for leading firms. Social media has transformed from a marketing channel into a battlefield where reputations can be built or destroyed in hours.

The examples from recent years demonstrate that no organisation is immune. The threats are evolving faster than ever, with AI-generated content creating entirely new categories of reputation risk that most companies are unprepared to handle.

Organisations need comprehensive risk frameworks, robust social media monitoring, employee training, and crisis preparedness. In a world where trust is a competitive asset and 63% of market value depends on reputation, the cost of inaction far exceeds the investment in protection. 

The most successful organisations will be those that view reputation management not as damage control, but as a strategic imperative. They will invest in the tools, training, and culture needed to navigate an environment where social media amplifies both opportunities and threats at unprecedented speed and scale.