In an era where actions on social media have real-world consequences, Prudential Hong Kong (HK) has received praise for its assertive handling of a crisis. The company’s swift and firm action against a senior regional manager who engaged in inappropriate behaviour on Instagram has led to an increased discourse around corporate responsibility, social media guidelines, and brand alignment.
Recently, Jo Lam, Prudential HK’s local Key Opinion Leader (KOL), sparked outrage with an insensitive post that made light of a tragic murder, attempting to promote a pair of sneakers similar to those worn by the murder suspect. In response to the public outrage, Prudential HK conducted an internal investigation and subsequently terminated Lam’s contract.
The company, in its official statement, disassociated itself from the actions of the financial advisor, emphasizing that his actions and comments are contrary to the values Prudential HK stands for. They underscored the presence of clear social media guidelines that all employees and financial advisors are expected to abide by.
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While Prudential HK’s swift response has been applauded, the incident itself has significantly impacted public sentiment towards the company. Analysis by media intelligence firm CARMA indicated a shift from a 20.6% positive and 9% negative sentiment on social media pre-incident to a 34.8% negative and 12.7% positive post-incident. The firm also noted over 11.9K mentions related to the incident, with 36.6% portraying negative sentiments.
The internet’s user community questioned how Prudential HK had tolerated an employee with such insensitive behaviour for an extended period, drawing comparisons to the company’s handling of the Double DUCKS art installation sponsorship. A call to boycott Prudential on the popular forum LIHKG was also noted.
However, despite the negative sentiments, industry
players believe that Prudential HK’s move was commendable. Their actions, seen as protective of their brand reputation, prevented possible further damage caused by Lam’s behaviour. The incident, happening during Prudential’s 175th-anniversary campaign, could have proven particularly damaging.
Desmond Ku, CEO of The Bridge Agency, pointed out that Lam’s past actions have already caused negative sentiments towards Prudential HK. This incident underlines the company’s commitment to maintaining its image. “Prudential did the right thing to protect the company’s image, especially when it has sponsored positive events to celebrate its 175th anniversary,” he said.
A former PR professional who wished to stay anonymous noted that as a public figure, Lam’s actions reflected not only his ethics but also on the company he represented. They pointed out that Prudential has a history of supporting local communities through volunteering, encapsulated in their ‘We are the people that DO’ spirit.
Prudential HK has shown that it cannot allow an individual’s actions to tarnish its reputation and commitment to the community. This, in turn, has highlighted the importance of the role KOLs and celebrities play in representing a brand.
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The incident has sparked conversations about the necessity of staff training on social media. David Ko, managing director of RFI Asia, said that hiring influencers requires a comprehensive background research process, including reviewing their entire social media presence and personal values alignment with the brand.
Brands should also have a crisis management plan in place in case a PR crisis occurs. This plan should outline steps that need to be taken to mitigate the damage and restore the brand’s reputation.
Dodo Kwong, head of Hong Kong marketing influencer platform Partipost, suggested a comprehensive check and discussion with the individual to ensure their values align with the brand’s image and standards. Brands should also monitor and review the KOL’s social media activities regularly.
Ken Cheung, digital director of KREW Digital, reiterated the importance of care when hiring KOLs due to their strong influential power on the internet. He suggested establishing clear social media guidelines and a Non-Disclosure Agreement (NDA) to protect a brand. This article was based on a report by Marketing Interactive.
