Facebook Value Drops $100 Billion As They Are Investigated For Data Breach
By Jatinder Singh, Associate Partner & Mentorship Coach, Lighthouse International
Facebook has learnt the financial costs of breaking trust as the US Federal Trade Commission announced they will be investigating Facebook’s privacy practices. This follows the scandal last week where it emerged that third-party software developers had obtained user data that it appears have influenced a number of government elections. A statement from Tom Pahl, acting director of the Federal Trade Commission’s Bureau of Consumer Protection, said on Monday afternoon:
"The FTC takes very seriously recent press reports raising substantial concerns about the privacy practices of Facebook"
Indeed, such has been the public backlash from the data privacy breach, that at one point the value of the company had dropped $100bn from its value before the scandal hit the press last week.
This story shows us the economic costs of breaking trust. Often we may think that trust is a psychological factor, solely limited to relationships between friends or people that work together in companies. However, it's significance is far wider than that. As the author Stephen M.R. Covey wrote in his book, The Speed of Trust:
“There is one thing that is common to every individual, relationship, team, family, organization, nation, economy, and civilization throughout the world—one thing which, if removed, will destroy the most powerful government, the most successful business, the most thriving economy, the most influential leadership, the greatest friendship, the strongest character, the deepest love. On the other hand, if developed and leveraged, that one thing has the potential to create unparalleled success and prosperity in every dimension of life. Yet, it is the least understood, most neglected, and most underestimated possibility of our time. That one thing is trust.”
Ultimately, trust has an emotional impact as well as a material or financial one. When we break it, it can take a lot of time and effort to rebuild, as Facebook is now finding to their detriment. Nevertheless, it can be rebuilt if both parties are willing to invest in the process. Are there any areas of your life that you need to be developing more trust in? Ask yourself how will it benefit you and how can you start that process now? To read more on this story click here...