Negative information about businesses is omnipresent. Even much-admired businesses, such as Apple Inc., must deal with negative information, as Apple discovered when consumer complaints surfaced in 2010 about the antenna design of its iPhone 4. Negative information tends to spread faster than positive and, because of increased usage of social media and the Internet, businesses are likely to be confronted with more — not less — negative information about their companies in the future. While a business may not always be able to control the spread of negative information, it can try to mitigate the potential damage from negative information in different ways.
An increasing number of companies invest money in corporate social responsibility initiatives, in part to build general goodwill for their organizations. However, it's not clear how effective corporate social responsibility initiatives are in strengthening customer resistance to negative information, compared to other tactics that can enhance a company's reputation, such as investing in product or service quality or customer care.
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