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SPECIAL REPORT Against in the company: Real Advocacy

Madrid, March 2018

Barcelona • Bogota • Buenos Aires • Havana • Lima • Lisbon • Madrid • Mexico City • Miami • New York City • Panama City • Quito • Rio de Janeiro • Sao Paulo Santiago • Santo Domingo • Washington, DC Against Fake News in the company: Real Advocacy

1. IntroducTIOn

The fake news phenomenon 1. IntroducTIOn 2. Going beyond politics. Fake “One Sunday in December 2016, Edward Welch, 28 years’ old, the news and the company: the reign of the father of two children and a voluntary fireman, left his house in North Carolina determined to sort out for himself what he 3. How to tackle . The active role of companies had heard on the news. He drove his car for 600 kilometers to 4. Fighting Washington and entered the pizzeria Comet Ping Pong armed with advocacy. Some key with an AR-15 assault rifle, a gun and 29 rounds of ammunition points during rush hour. He shot into the air three times, fortunately 5. Developing an advocacy without hitting anyone, and he started looking for Satanic signs, program step-by-step underground chambers and passageways. He was convinced AutHors there were children inside who had been kidnapped and sexually exploited by a pedophilia network led Hillary Clinton’s campaign manager.”

This is how journalist Marc Amoros starts the third chapter of his recently published book Fake News. La verdad de las noticias falsas (The truth about fake news) in which he warns us that fake news is not a joke and has real consequences. For Edward Welch, a real sentence of four years in prison for the case known as PizzaGate, which the New York Times looks at in this report.

In an interview for “Developing Ideas” from LLORENTE & CUENCA, Amoros defines fake news: “It is false information which is spread with the appearance of real news so we will believe it and so it is spread with an objective. Without an objective there is no fake news. Basically, there are two objectives: economic, you’re trying to get money; or ideological, you’re trying to manipulate, instill in or transmit to a broad sector of the population an idea about an object, a person, a policy.”

Another of the features of fake news is its power and potential to go viral compared to real news. According to a study carried out by researchers from the Massachusetts Institute of Technology (MIT), in which they analyzed 126,000 Twitter stories shared by 3 million people between 2006 and 2017, fake news is 70% more likely to be retweeted, and it is real people (not the bots) who are responsible for propagating this information.

The proliferation of this cascade of disinformation is also affecting traditional media and the giants. In his editorial as the new director of the New York Times, Arthur Gregg Sulzberger focuses on fake news as one of the main bones of contention of the “gray lady”: “Disinformation is increasing and confidence in the media falls as technological platforms prioritize

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clicks, rumors and rather than real investigation (...) Just like our predecessors on the Times, my colleagues and I will not give in to these powers.” In the case of , and Twitter, they announced at the end of last year their commitment to use trust indicators to help users review the truthfulness of publications and of the journalists responsible for the articles which appear in the news’ feed.

According to Marc Amoros: “What we have to understand is that the technological tools are already within the reach of everyone and they make it very easy to create fake news. You just need a little thought, to be a little crafty to mock up the news, Photoshop to tamper with a photo and there are even software programs which allow words to be put into people’s mouths that they never said with their own voice. It is becoming increasingly hard to detect what is true and what is false. If we reach the point where we can’t distinguish between what is true and what is false, we will reach the point at which we only believe that which confirms our opinion.”

The fake news’ empire has already flooded TV fiction too. In seasons 6 and 7 of the series Homeland, in which Claire Danes plays a CIA agent, fake news sets the tone for the plot (spoiler alert). Other series such as The Good Fight and Quantico have also chosen fake news as their preferred narrative mainstays, being based on a reality which has severely affected the United States in recent years and has impacted the course of its political and social life.

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2. Going beyond different social networks, it politics. Fake news has managed to become an and the company: the authorized, official voice for reign of the hoax denying fake news. And it does so with the same formula: The impact that fake news has ingenuity, impact and going had in the political sphere is viral. Behind this army of well-known with the victory denials, there is a group of of Donald Trump or the pro- journalists whose purpose is, Brexit campaign in the United in its own words, “to provide Kingdom, becoming a turning readers with tools so that they point in our recent history. don’t get conned.” “On different social networks, it has managed Fake news is not a passing The journalist Julio Montes is to become an authorized, phenomenon but rather a a co-founder of Maldito Bulo: perfect storm brought by “We receive at least 15 hoaxes official voice for denying technology that is not going a day excluding those which fake news” to just disappear in the next are repeated. We can’t cope few years. The technological with reviewing them all, and consultant Gartner assures we try to break down those us in his report Technology that contain the most impact. Predictions for 2018 that in At present, we have resolved 2022 the citizens of mature around 500 hoaxes. Let’s economies will consume more hope that this year we have fake news than real news. He the capacity to resolve more also warns that going beyond hoaxes and in particular to do the political and media so quickly, which is our major impact that they have had aim: to stop the hoax before it in 2017 worldwide, fake news attains its peak.” represents, at the same time, a serious problem for companies. 3. How to tackle “Companies not only have to hoaxes. The active closely monitor what is said role of companies about their directly but also in what contexts to make At present, there is a growing sure they are not associated debate about how to tackle with content that is harmful to the fake news that circulates the value of their ,” the online. Some authors like report stresses. Darrell M. West, the director of the Center for Technology If anyone in this country has Innovation Brookings, declared war on fake news, point to the need to involve it is Maldito Bulo. With more governments, institutions, than 465,000 followers on its the media, companies and

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citizens in order to solve networks. “We need to monitor this problem. According what your positioning is and to West, governments and your brand’s dialogue in order educational institutions must to ensure that if fake news is promote information literacy, spread, it can be detected in the media must provide time. The earlier you detect quality journalism and fight a rumor, the sooner you can “Silence is no longer an disinformation, technology react.” option and just by taking companies must invest in tools up an active stance, to help identify hoaxes and, Secondly, he recommends finally, citizens must compare acting and denying false companies can find a information. information: “The brand must way of taking on the never opt for silence when lurking disinformation” So, do companies have to faced by fake news which wait for these measures to be is damaging to it. There are taken whilst, as we have seen trademarks, like people, who previously, they are affected think that it’s not going to go by hoaxes and fake news? viral and we opt for sitting back We believe that in the age of and waiting. Before we realize, hypertransparency in which it’s spread quickly and has we live, silence is no longer an become so big that we’re left option and just by taking up with: how can we deny all this an active stance, companies now?” can find a way of taking on the lurking disinformation. And the final recommendation is to respond in the same Maldito Bulo is quite clear way, within the same mental about the mechanism to framework as the fake news: fight them: transparency, “Just saying that this is a lie early detection and the doesn’t work”. Amoros points dissemination of denials by out: “You can’t try to compare trustworthy channels of the false information which appeals community. “We must learn to an emotion or feeling to hard, to fight disinformation with cold data.” its own weapons. Going viral with the denials and creating 4. Fighting communities who are willing to disinformation with help,” adds Montes. advocacy. Some key points In this regard, Marc Amoros offers three key pieces of advice In addition to the reflections which companies must follow by Maldito Bulo and Marc if they wish to win the battle Amoros, we would like to against fake news. The first add the need to work on is to carry out constant, very prevention. In addition to active listening on the social the denial techniques after

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the rumor has been detected, the CEO of Tesla, denied we need to build prevention on his Twitter profile the mechanisms that put us in information published by a better position to tackle The New York Times about fake news. What are these the car model, Model S. mechanisms and how are The same modus operandi they coordinated? In our was used by Jeff Bezos opinion, they typically involve who denied ironically on the development of digital Twitter the news related identity programs that with ’s intention promote the presence of the to open automated managers and employees supermarkets. The tweet “The logical response of the companies on social achieved more than is to take on the lie networks. The logical response 1,000 likes and 478 RTs. promoted by false is to take on the lie promoted They are both examples profiles/ interested by false profiles/ interested of how companies have parties/misinformed parties managed to halt the parties/misinformed with true information impact on their parties with true promoted by real, informed by personalizing the information promoted ambassadors. Basically, message and making taking on fake news with real the most of the digital by real, informed advocacy. We can summarize identity of their CEOs. In ambassadors” the main benefits of this the digital environment, perspective by four key points: companies who opt for a “human voice” as a value 1. Humanize the proposition increase their credibility.

Authenticity, transparency, 2. Boost and credibility and trust are increase the influence of values which have come organizations into play in the new digital age. However, how In addition to the corporate should they be applied? channels companies Recently, Ivan Pino in the have available, their report Digital Experience ambassadors become provided the key: “the spokespeople qualified to media is not the message. highlight the attributes The media is the person.” of their companies. An This concept has already example is Antonio been applied to perfection Llarden, the chairman of by the leaders of Tesla Enagas who, through a and Amazon. Elon Musk, personal , shares his vision about the present

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and future of the sector, of companies and highlighting aspects that innovation as mainstays are being developed by the of her discourse on social company he heads up. networks, or Mary Barra, the CEO of General Motors, However, the ambassadors positioned in the territory not only boost the of the empowerment leadership of the company, of the woman and her but they increase its development in STEM. influence. According to RAE, the influence is: “The 4. Promote transparency and “The personal brand power, favor, authority contribute to reputation of someone towards projects of managers another person/people.” The personal brand and spokespeople So, a quality of people projects of managers developed by and not of corporations. and spokes people companies Working on the influence developed by companies of a company in the digital are a key element for are a key element for area necessarily involves promoting dialogue and promoting dialogue working on the digital relationship with their and identity of its managers or main stakeholders and, employees. accordingly, a commitment relationship with their to transparency. Basically, main stakeholders” 3. Position the ambassadors as Adolfo Corujo put as references forward in UNO Magazine #13, “those managers who The development of a tackle this cultural change solid digital identity intelligently will make a consistent with the decisive contribution to values of ambassadors improving the corporate makes their participation reputation of the in said communities, companies they lead.” with which they share interests, more credible Aware of the benefits but by consumer motivators also the cultural stress on certain themes and/ this perspective entails for or subjects. This is the organizations; how can we case of Rosa Maria approach a program of Garcia, the chairperson this type? Our colleagues of Siemens España, who Luis Gonzalez and Jon defines the leadership, Perez recently drew up the The 10 golden rules of

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Employee Advocacy, which network that transmits is extremely useful for with authenticity and approaching programs truthfulness the reality with employees. Backed of the company but, when up by these keys, we the time comes, can also now wish to define the serve as a protective steps to be taken to shield against hoaxes. manage an ambassador

Hoaxes and companies. Some examples

“A group of Japanese scientists says it has found a possible solution to baldness in McDonald's french The ingredient in McDonald’s french McDonald's fries.” And so, several media picked up on the hoax fries that will help to cure baldness about French fries being a permanent solution to baldness.

The video showing how hundreds of pigeons were Heineken and the pigeons sucked in attracted by grains of barley and ended up being ground Heineken by grain grinder to death circulated rapidly on WhatsApp and became news. The company had to issue a press release to deny that this video had been recorded at one of its facilities.

Just as Crisis Area set out in its blog, the topic of the The European Union may ban alleged ban on kebabs in Europe was taken up by Kebab kebabs owing to health risks the media agenda to the point where the European Commission and Parliament had to deny it on the social networks.

his is a recurring hoax which circulates every now and again on Twitter, Facebook and WhatsApp. The Health Ministry and Mercadona have already denied Withdrawal of creams by Mercadona it on social networks. What’s more, the Spanish Mercadona National Police Force has warned on several occasions, via @policia, about the broadcasting of this false information.

The gift checks or discount coupons at certain stores Zara Zara coupons with discounts are fake which is also repeated periodically and spread quickly via WhatsApp and social networks.

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5. Developing an to convert our stakeholders advocacy program into ambassadors, it is key step-by-step to determine the time of exploration at which “we Starting point. Define will be ready to design the your conversation archetypes of people we territories and identify wish to attract and win over, the communities bearing in mind their interests, emotions and characteristics. A few years ago, our colleagues An outline sketch of the Adolfo Corujo, Ivan Pino and members of the community David Gonzalez Natal reflected we hope to promote and of the about the new communication sense of belonging which could “The effectiveness borders, and they introduced be cultivated with them with of communication two concepts into the debate: regard to shared values and territories as stable masses of purposes.” involves delimiting the conversation and communities conversation territories of interlocutors that are not Stage I. Create the in which I wish to identified by demographic participation framework criteria but rather by the sense position myself as a of belonging to a group which Once the conversation company and, beyond shares values, interests and territories have been defined this, such communities purposes. and the communities and people with whom we wish to I wish to reach” Today, the effectiveness of relate, we need to determine communication involves the participation framework delimiting the conversation within which we will develop territories in which I wish to the program. position myself as a company and, beyond this, such It is likely that a company communities I wish to reach. already has employee participation policies, but it is This point is key in digital equally likely that said policies identity development are several years old and are programs. If we don’t more restrictive and limiting understand who the people rather than incentivizing are with whom we wish to talk and motivating. Is it worth and the themes of interest, we developing advocacy will not be able to develop the programs in organizations influence of our advocates. with restrictive participation As Pino and Gonzalez pointed policies? The answer goes out in their reflection on without saying. Although Digital Experience, effectively it seems like a minor issue, combining communication before tackling an ambassador and , at the stage program it is important to of implementing a process reassess internal policy. In

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many cases, reviewing these benefit (for the company standards and determining and the ambassador) of an new, more stimulating ones advocacy program and thereby is the real starting point for working on attitude and working on digital identity providing the tools, techniques development programs for and some keys which allow managers and employees. the increased influence of employees on the networks. Stage II. Provide tools to your employees and Stage III. Define the select employees with personal editorial lines the potential to be ambassadors Our digital identity reflects who we are and “Training sessions are not After the standards comes how we present ourselves the stage of training as professionals online, only useful for providing and providing tools and constructing our personal instruction but also know-how to potential brand and the footprint we for identifying those ambassadors. Training leave. This is why, before sessions are not only useful taking on an advocacy program ambassadors with for providing instruction with some of the managers or the greatest potential” but also for identifying employees of our organization, those ambassadors with we need to work with them the greatest potential. In on their own editorial line and this regard it is important channels plan. Which themes to consider: what makes an are we going to talk about employee a good advocate? and what is our contribution? In our opinion, there are two Who am I trying to reach and main qualities which define who do I have to relate with? a good ambassador. On the – These are questions we need one hand, the attitude, in to look at if we wish to be other words, his/her being successful. well predisposed to sharing content about the company, Stage IV. Organize, identification with the incentivize and monitor purpose. On the other hand, participation influence, referring to the ability to become a reference At this final stage, after or influencer in one of the defining the territories and target communities which we communities, having created have defined beforehand. the participation framework, trained and selected the Good training will thus ambassadors and developed focus on these two lines: the editorial line with them, on transferring the mutual efforts must be focused on

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organizing, incentivizing and which seems to apply: “if monitoring said participation. you want different results, The key is, on the one hand, don’t do the same thing.” As keeping the program alive communication and reputation to activate it vis-à-vis the professionals we need to “We are not facing a risks where necessary and, tackle new problems with new on the other hand, measure solutions. And fake news is simple problem and it the participation of our a new problem which seems thus requires us to adopt managers and employees to (unfortunately) to be here to more sophisticated detect areas for improvement stay. In this case, the phrase in the program and identify “truth is stranger than fiction” solutions if (...) you want said ambassadors with greater may even seem a bit confusing. different results, don't do potential. Fiction ends up becoming, if the same thing” you repeat it often enough, We are not facing a simple reality and this pseudoreality problem and it thus requires is generated into a “shared us to adopt more sophisticated truth.” It lies within companies solutions to prepare. In this and society to make a joint context there is a phrase effort to combat this. attributed to Albert Einstein

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Authors Eva Pedrol is Director of the Corporate and Crisis Areas at LLORENTE & CUENCA in Barcelona. Eva Pedrol manages the Corporate Communications and Crisis Area at LLORENTE & CUENCA Barcelona. She has more than 10 years’ experience in communications and reputational consulting at different companies nationwide and worldwide, helping to strengthen and protect its positioning and business. She has specialized in supporting international companies which have their landing stage in Catalonia from sectors such as retail, aviation, technology or the shared economy. She is vastly experienced in Spanish and international media as she worked at the EFE News agency, both in Barcelona and as a correspondent in Panama. She has also provided her communications consultancy services at the Regional Office of UNICEF for Latin America and the Caribbean. Pedrol has a degree in Journalism from Universidad Autonoma de Barcelona (UAB) and a master’s degree in Communications Management from Universidad Pompeu Fabra (UPF). [email protected]

María Obispo is Manager of the Digital Area at LLORENTE & CUENCA. Having graduated with a Journalism degree from the Universidad de Navarra and PDD from IESE , she has more than 10 years’ experience in online communication projects. Obispo has worked in companies like Vocento or lainformación.com and, during the eight years she has spent at LLORENTE & CUENCA, she has provided a strategic counsel to large Spanish companies like Inditex, Gas Natural Fenosa, Caixabank, Campofrio and L’Oréal, amongst others. What’s more, she leads classes as a digital communications professor at centers like Universidad de Cantabria, Universidad Carlos III or Escuela Europea de Negocios, amongst others. [email protected]

Mar Velasco is Senior Consultant in the Digital Area at LLORENTE & CUENCA in Barcelona. Velasco has a degree in Journalism from Universitat Autònoma de Barcelona (UAB) and a master’s degree in TV Quality and Innovation from Universitat Pompeu Fabra (UPF). She has worked as a journalist for five years with various media, such as the Europa Press news agency, and on national and Autonomous Community level radio stations such as RNE or COM Radio, having even presented her own program. At LLORENTE & CUENCA Barcelona she heads up the Digital Area, advising companies from different activity sectors, including technological, financial and pharmaceutical companies, particularly in terms of their positioning and digital strategy. [email protected]

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Vanessa Álvarez is Senior Consultant in the Digital Area at LLORENTE & CUENCA. A graduate in Journalism and Audiovisual Communications from Universidad Internacional SEK and a master’s degree in Institutional Communications from Universidad Rey Juan Carlos. Alvarez started her professional career as a trainee journalist at TVE and RNE. She later spent three years involved in corporate communications. She has been working on online communications at LLORENTE & CUENCA for eight years with clients like: Repsol, Sacyr, Coca-Cola, MasterCard, Grünenthal, Aliseda Inmobiliaria and Campofrío, among others. [email protected]

13 CORPORATE MANAGEMENT SPAIN AND PORTUGAL UNITED STATES ANDES’ REGION

José Antonio Llorente Arturo Pinedo Erich de la Fuente Bogota Founding Partner and Chairman Partner and Managing Director Partner and CEO [email protected] [email protected] [email protected] María Esteve Partner and Managing Director Enrique González Goyo Panadero Miami [email protected] Partner and CFO Partner and Managing Director [email protected] [email protected] Erich de la Fuente Av. Calle 82 # 9-65 Piso 4 [email protected] Bogotá D.C. – Colombia Adolfo Corujo Barcelona Tel. +57 1 7438000 Partner and Chief Talent and 600 Brickell Ave. Innovation Officer María Cura Suite 2020 Lima [email protected] Partner and Managing Director Miami, FL 33131 [email protected] T​el​. +1 786 590 1000 Luis Miguel Peña Carmen Gómez Menor Partner and Senior Director Corporate Director Muntaner, 240-242, 1º-1ª New York City [email protected] [email protected] 08021 Barcelona Tel. +34 93 217 22 17 Salomón Kalach Humberto Zogbi Director Latam Desk Chairman MANAGEMENT - AMERICAs Madrid [email protected] [email protected]

Alejandro Romero Joan Navarro Abernathy MacGregor Av. Andrés Reyes 420, piso 7 Partner and CEO Americas Partner and Vice-president 277 Park Avenue, 39th Floor San Isidro [email protected] of Public Affairs New York, NY 10172 Tel. +51 1 2229491 [email protected] T​el​. +1 212 371 5999 (ext. 374) Luisa García Quito Partner and COO Latin America Amalio Moratalla Washington, DC [email protected] Partner and Senior Director of Sport Alejandra Rivas and Business Strategy Ana Gamonal Managing Director José Luis Di Girolamo [email protected] Director [email protected] Partner and CFO Latin America [email protected] [email protected] Iván Pino Avda. 12 de Octubre N24-528 y Partner and Senior Director of 10705 Rosehaven Street Cordero – Edificio World Trade Antonieta Mendoza de López Digital Fairfax, VA 22030 Center – Torre B - piso 11 Vicepresidenta de Advocacy LatAm [email protected] Washington, DC Tel. +593 2 2565820 [email protected] Tel. +1 703 505 4211 Jordi Sevilla Santiago de Chile Vice-president of Economic Context MEXICO, CENTRAL AMERICA [email protected] AND CARIBBEAN Constanza Téllez Managing Director Javier Rosado Daniel Moreno Claudio Vallejo [email protected] Partner and Managing Director Chief Talent Director Senior Latam North Region [email protected] [email protected] Francisco Aylwin [email protected] Chairman Marjorie Barrientos Lagasca, 88 - planta 3 [email protected] Mexico City Talent Manager for Andes’ Region 28001 Madrid [email protected] Tel. +34 91 563 77 22 Magdalena 140, Oficina 1801. Juan Arteaga Las Condes. Karla Sanches Impossible Tellers Managing Director Tel. +56 22 207 32 00 Chief Talent for Northern Region [email protected] [email protected] Ana Folgueira Managing Director Rogelio Blanco SOUTH AMERICA [email protected] Managing Director [email protected] Buenos Aires Lagasca, 88 - planta 3 28001 Madrid Bernardo Quintana Kawage Mariano Vila Tel. +34 914 384 295 Non-Executive Chairman Managing Director [email protected] [email protected] Cink Av. Paseo de la Reforma 412, Piso 14, Avenida Corrientes 222 – piso 8 Sergio Cortés Col. Juárez, Del. Cuauhtémoc C1043AAP Ciudad de Buenos Aires Partner. Founder and Chairman CP 06600, Mexico City Argentina [email protected] Tel. +52 55 5257 1084 Tel. +54 11 5556 0700

Muntaner, 240, 1º-1ª Havana Rio de Janeiro 08021 Barcelona Tel. +34 93 348 84 28 Pau Solanilla Cleber Martins [email protected] [email protected] Lisbon Sortis Business Tower, piso 9. Rua da Assembleia, 10 - Sala 1801 Tiago Vidal Calle 57, Obarrio – Panamá RJ - 20011-000 Partner and Managing Director Tel. +507 206 5200 Tel. +55 21 3797 6400 [email protected] Panama City Sao Paulo Avenida da Liberdade nº225, 5º Esq. 1250-142 Lisbon Pau Solanilla Marco Antonio Sabino Tel. + 351 21 923 97 00 Managing Director Partner and Brazil Chairman [email protected] [email protected]

Sortis Business Tower, piso 9 Juan Carlos Gozzer Calle 57, Obarrio - Panamá Managing Director Tel. +507 206 5200 [email protected]

Santo Domingo Rua Oscar Freire, 379, Cj 111, Cerqueira César SP - 01426-001 Iban Campo Tel. +55 11 3060 3390 Managing Director [email protected]

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