SENSE OF WHETHER ANY ONE IS
DOING ANYTHING ABNORMAL.
LAUREN: HE CONDUCTED A ROUND OF
MEDIA INTERVIEWS OR HE'D BE
WILLING TO TESTIFY IN FRONT OF
CONGRESS.
THE FACEBOOK CEO CANNOT AGREE
THAT RUSSIA GOT BILLIONS ON USER
DATA.
HE ADMITS THIS PROBLEM IS THAT
SOMETHING YOU WOULD'VE PREDICTED
WHEN HE STARTED HIS COMPANY FROM
HIS DORM ROOM.
MULTIFAMILY ADDRESSING THE
PUBLIC, THEY ARE STILL DEALING
WITH MAJOR BACKLASH.
TWO CLASS-ACTION LAWSUITS HAVE
BEEN SET AGAINST FACEBOOK.
WHEN THE USERS COME WHEN THE
SHAREHOLDERS.
THE FTC IS MOVING FORWARD WITH
THEIR INVESTIGATION.
FACED WITH TRADED LOWER AS IT
HAS BEEN FOR DAYS.
LAUREN: ATHOS TENS OF BILLIONS
OF DOLLARS.
IN THAT TIME ZUCKERBERG WAS
SILENCED, FACEBOOK STOCKS
PLUMMETING IN VALUE, RAISING
QUESTIONS AS TO WHY IT TOOK FIVE
DAYS FOR HIM TO RESPOND.
THE TALK ABOUT IT WITH BUSINESS
CONSULTANT AND UNIVERSITY OF
MARYLAND ECONOMIST PETER MURRAY
G.
GOOD TO SEE BOTH OF YOU THIS
MORNING.
HILLARY, LET ME BEGIN WITH YOU.
ARE YOU SATISFIED WITH MARK
ZUCKERBERG'S RESPONSE?
>> ABSOLUTELY NOT.
THE WAY THEY SHOULD LOOK IT UP
FOR THEIR COMPANIES, EXPERTS
KNOW ON THE CRISIS COMMUNICATION
IS IMPORTANT IN THAT PEACETIME
THAT'S WHEN YOU PREPARE.
AS KENNEDY SAID, THE BEST TIME
TO REPAIR A ROOF IS WHEN THE SUN
IS SHINING.
IMPORTANTLY, ZUCKERBERG AT
FACEBOOK HAD EVERY OPPORTUNITY
BEFORE 2012 TO PREPARE FOR SUCH
A CRISIS.
THIS WASN'T AN OVERNIGHT ISSUE.
THEY WERE PREPARED.
THEY DID NOT HAVE THE CRISIS
COMMUNICATION SKILLS ONLINE.
IT IS NOW LOOKING LIKE HYPER
HYPOCRISY BECAUSE THEY WERE
REPORTING TO BE THE FACEBOOK
FRIENDS AND FAMILY AND FIND.
INSTEAD, THEY ARE THE MACHINES
FOR THEIR OWN POWER, FOR THEIR
OWN POLITICAL BIAS AND THAT IS
THAT THE OUTRAGE IS ACTUALLY
ABOUT AND THAT IS BAD BRANDING,
BAD FOR THE STOCK, BAD FOR THE
CONSUMER END-USERS DON'T LIKE
THE FACT THEY WERE VERY LAX WITH
OUR USER DATA AND VIGILANT WITH
THEIR OWN ACUITY --
LAUREN: DO USERS REALLY #DELETE
FACEBOOK OR IS FACEBOOK SO
INGRAINED IN OUR DAILY LIVES
THAT WE ARE GOING TO STICK WITH
IT AND ACCEPT THE FACT WE HAVE
NO PRIVACY.
>> WELCOME WOULD HAVE TO ACCEPT
THE FACT THAT HER PRIVACY IS
COMPROMISED WHEN WE CHOOSE TO BE
ON A SOCIAL NETWORK.
HOWEVER, HOW COMPROMISED WILL IT
BE?
THIS GOES MUCH FURTHER THAN
CRISIS COMMUNICATION.
THE REALITY IS THEY DON'T KNOW
WHAT CORRECT BEHAVIOR IS.
FOR EXAMPLE SAYING ABOUT THE
REGULATIONS MEANING HE WANTS ONE
OF MY STUDENTS HAULED IN FOR A
FRATERNITY PRANK AND SAY THIS IS
IRRESPONSIBLE BEHAVIOR.
CALL A PROFESSOR MORICI, I KNOW
THERE'S ROOM FOR IMPROVEMENT.
WHAT SHOULD I DO TO IMPROVE?
READING HOW DO I'D NOT BE
IRRESPONSIBLE.
THESE GUYS SKIPPED OVER
ADOLESCENCE.
IF THE BOARD OF DIRECTORS THAT
FACEBOOK IS SERIOUS ABOUT
PRESERVING SHAREHOLDER VALUE,
NOW IS THE TIME FOR THE EXIT OF
THE CEO AND ALSO SHAKE UP OF
MANAGEMENT TO CHANGE THE
CORPORATE CULTURE AND START
RECOGNIZING THAT IT IS IN CHARGE
OF A LOT OF VERY SENSITIVE DATA.
IT KNEW ALL ALONG THAT HE WAS
GIVEN ACCESS TO YOUR PERSONAL
DATA, TOO MANY PEOPLE WHO THEN
COULD GIVE ACCESS TO OTHERS SO
IT LOST CONTROL.
TRYING TO GET THAT BACK AS THE
PARABLE OF THE MUSTARD SEED.
IT JUST CAN'T BE GOTTEN BACK.
LAUREN: ONE FOLLOWED BEFORE WE
GO ABOUT HILLARY, FOR YOU,
PETER, THE WAY IT IS STRUCTURED
MARK ZUCKERBERG HAS CONTROL.
WHAT CHANGES CAN BE MADE SO HE
LOSES SOME OF THAT CONTROLLED
AND I BELIEVE HE JUST ARGUED IS
NO LONGER CHIEF EXECUTIVE.
I THOUGHT YOU WERE SAYING HE
SHOULD NOT BE.
LAUREN: HE IS THE CHIEF
EXECUTIVE.
I DON'T THINK YOU SHOULD BE.
THIS IS NOT ABOUT CRISIS
COMMUNICATIONS IN STRUCTURE.
A LOT OF COMPANIES HAVE CEOs
WITH A LOT OF CONTROL BUT THEY
HIRE PEOPLE WHO ARE RESPONSIBLE
AND THEY ARE THEMSELVES
RESPONSIBLE.
>> HE'S AN EXPERT AT THIS.
HE IS NOT AN EXPERT AT THIS
OBVIOUSLY BECAUSE NOW HE'S SHOWN
HIS COLORS.
MY POINT WAS YOU HAVE TO BE
PREPARED IN A SITUATION LIKE
THIS.
WHAT YOU ARE SAYING IS TOTALLY
CORRECT.
HOWEVER THEY'RE NOT PREPARED AND
IT'S SHOWN AS BUSINESS
EXECUTIVES WHO SHOULD'VE KNOWN
TO HAVE EXPERTS BEFORE ALL THIS
HAPPENED A LONG TIME AGO BECAUSE
EVERY EXECUTIVE KNOWS TO BE
TRAINED IN EVERY SITUATION THAN
THEY WERE.
LAUREN: ZUCKERBERG IS 33 OR SO
IT IS THAT IN THIS APOLOGY I WAS
YOUNG.
I DIDN'T KNOW.
I HAVE A MAJOR COMPANY.
>> THIS IS WHAT'S IMPORTANT.
THEY REALLY SHOWN THEIR COLORS
AND THAT'S WHAT THE OUTRAGE IS
ABOUT.
THEIR BRAND IS NO LONGER.
>> GUYS, WE CAN TALK ABOUT THIS
FOR HOURS.
WE HAVE MORE NEWS.
>> IS NOT A RETRIEVABLE.
YOU HAVE TO GET COMPETENT
MANAGEMENT IN THERE.
FACEBOOK PROVIDES A SERVICE
PEOPLE FIND VALUABLE.
ALL ITS SUBSCRIBERS.
>> NOT TO BE --
>> YOU KEEP INTERRUPTING ME.
HE HAD PLENTY OF TIME AND CALLED
INTO QUESTION MY EXPERTISE,
WHICH I DON'T APPRECIATE.
IT IS MUCH MORE THAN CRISIS
COMMUNICATIONS HERE.
THERE'S A SUBSTANTIVE PROBLEM IN
WHICH THE MANAGEMENT VIEWS IS
CORRECT.
INCORRECT BEHAVIOR.
I CAN ONLY BE CHANGED BY
DIFFERENT PERSONALITIES.
NOT BY NEARLY TRAINING THEM.
>> RIGHT, BUT IT'S NOT JUST
PERSONALITIES.
IT'S WHAT THEY PURPORTED TO BE
MADE BELOW THE BRAND AND THEY'VE
BEEN EXPLOITED FOR WHAT WE
THOUGHT WE BEEN DOING.
THE ISSUE HAS BEEN EXPLOITED.
AND YOU'RE RIGHT, SUPER
PERSONALITIES, DIFFERENT PEOPLE,
BUT IT'S ABOUT THE ACTUAL
FUNDAMENTAL BRAND ISSUE.