In today's digital age, social media has become an integral part of business communication and branding. However, for CEOs, their personal use of social media can have a significant impact on their company's reputation and bottom line. In this article, we will take a closer look at some case studies of CEOs whose personal social media use has had a negative effect on their business.
- Elon Musk, CEO of Tesla: In 2018, Elon Musk faced criticism for his use of social media, particularly Twitter. He was accused of using the platform to make erratic and controversial statements, and for using it to make announcements about the company without prior approval from the board. For example, in August 2018, he tweeted that he was considering taking Tesla private, causing the stock to soar and triggering an investigation by the Securities and Exchange Commission (SEC). As a result, Musk and Tesla were each fined $20 million, and Musk was forced to step down as Tesla's chairman.
- Steve Easterbrook, former CEO of McDonald's: In 2019, Steve Easterbrook faced backlash for his use of social media. He was criticized for sending personal messages to employees on company-owned social media accounts, which was seen as unprofessional and crossing boundaries. An investigation revealed that he had violated company policy by having a consensual relationship with an employee. As a result, he was fired from the company.
- Ryan Cohen, CEO of GameStop: In 2021, Ryan Cohen faced backlash for his tweets about the company's stock performance, which some investors saw as reckless and lacking transparency. His tweets fueled speculation and contributed to the GameStop stock trading frenzy. As a result, Cohen faced calls for his resignation and an investigation by the SEC.
- Dennis Muilenburg, former CEO of Boeing: In 2019, Dennis Muilenburg faced criticism for his use of social media during the 737 MAX crisis. He was criticized for not being transparent and for not responding quickly to the crisis on social media. As a result, he faced calls for his resignation, and he was eventually fired from the company.
- Jill Soltau, CEO of J.C. Penney: In 2020, Jill Soltau faced criticism for her use of social media during the company's bankruptcy proceedings. She was criticized for not being transparent and for not responding to customer concerns on social media. As a result, the company faced a significant drop in stock price, and Soltau faced calls for her resignation.
These case studies show that CEOs need to be mindful of the impact their personal social media use can have on their business. According to a survey by Weber Shandwick, a global public relations firm, 72% of consumers said that a CEO's personal brand and reputation are important factors in their decision to buy from a company. Furthermore, a study by Edelman, a global communications marketing firm, found that 64% of consumers believe that CEOs have a responsibility to use social media to address important social and political issues.
However, it's also important to note that not all CEO's personal social media have a negative effect on their business. CEOs who use social media effectively can help to build trust, credibility, and a positive reputation for their company. A study by Sprout Social, a social media management company, found that CEOs who are active on social media are viewed as more transparent, accessible, and trustworthy.
In conclusion, CEOs need to be aware of the potential impact of their personal social media use on their business. They need to be mindful of the tone and content of their messages, and ensure that they are in compliance with their company's policies and guidelines.