Abstract:
Social media play a very important role for any organization when it comes to selling and
promotion of their products it will increase their product value and engagement with their
loyal customers, while on the other hand it puts your business reputation at risk. A single post could be causing your company to be questioned and your whole reputation would be ruined.
Any website that enables a visiting user to post content provides an opportunity while on the other hand organization can be harmed.
This research based on several case studies on those companies which faced reputation crisis over social media. The researcher used qualitative study and interpretative approach was used for obtaining information and analyzing the result.
This research looked at the various local and multinational for profit-organization who
experienced these social media crisis. The aim of this research was to identify, whether social networking sites contribute to the development of reputational crisis, how this impacts company reputation and how the affected companies handle this situation and what response strategies they make to sustain their credibility and reputation.
The result indicates that social media damage company reputation in some cases and create problems for companies and threat for their online marketing efforts but in some cases reputation is damaged but later they handle crisis efficiently. And for some cases social media could not effect on their reputation. Hypotheses were proposed that should be empirically tested by future studies to provide evidence for generalization.
