HBR IdeaCast: "When Fake News Targets Your Company"

Date: September 9, 2025
Hosts: Adi Ignatius & Alison Beard
Guest: Patrick Hock, Professor of Strategy and Responsible Management, HEC Lausanne; co-author of "How to Counter Fake News" (HBR)

Episode Overview

This episode explores the rising threat of fake news targeting companies, not just public figures or political institutions. Through an interview with expert Patrick Hock, the discussion centers on why traditional responses are often ineffective, how fake news spreads, the psychology behind public perception, and what practical steps companies can take to defend themselves proactively and reactively. The episode is particularly valuable to leaders seeking concrete strategies to protect their organization’s reputation in the era of viral misinformation.

Key Discussion Points & Insights

1. The Reality and Prevalence of Fake News in Business

• Fake news is no longer just a political or scientific problem.
  • “I think about this so much in the realm of politics and science, but I haven't really thought about it affecting businesses. Is it pretty prevalent?” — Alison Beard [01:37]
• Misleading stories can be created by competitors, short sellers, trolls, or bored individuals.
• Example: Fake video of Pfizer CEO Albert Bourla manipulated to suggest he advocated for reducing the world population, severely damaging reputation.
  • “Somebody doctored it, and Pfizer had to deal with the fallout. So it is definitely a problem. It's a growing problem and companies need a strategy for it.” — Adi Ignatius [01:49]

2. Ineffectiveness of Traditional Playbooks

• Ignoring or simply fact-checking often fails:
  • Ignoring can look like confirmation.
  • Taking down content triggers the ‘digital hydra’ effect—copies and shares multiply.
  • “Another type of strategy... is removing the content. But here the problem is some sort of digital hydra effect.” — Patrick Hock [03:53]
• Fact-checking alone is insufficient:
  • Correcting misinformation doesn’t always slow its spread or influence.
  • “We know of many examples where the company provided facts... but nevertheless, the narrative and the fake news just continued being spread and went out of control.” — Patrick Hock [03:53]

3. The Streisand Effect and the Dilemma of Responding

• The Streisand Effect: Attempts to suppress can backfire, drawing more attention.
  • Story of Barbra Streisand's lawsuit over a photo which, after her intervention, was viewed by 400,000 people instead of four [05:02].
• Timing is crucial: Communicating too early or too late has risks, but there’s no easy formula for the "sweet spot."
  • "How to identify this sweet spot, when to come forward... I don't know. I think this is really a challenge for future research." — Patrick Hock [06:35]

4. Proactive Preparation: The Three Tactics

i. Monitor Social Resonance

• Use active social listening to detect when a story starts gaining traction or hits a visibility threshold.

ii. Ensure Transparency

• Build credibility via independent audits, certifications, behind-the-scenes content, and open stakeholder engagement.
• Example: McDonald’s “Our Food, Your Questions” campaign, inviting customers to see food prep in response to rumors.

iii. Activate Allies in a Crisis

• Mobilize networks, partners, and credible third parties to publicly support your version of events.
• Example: Taco Bell countered false claims about beef content by running ads and leveraging the US Department of Agriculture as validation.
• “You really need to get this support to ensure that people realize... actually other people, many other people are saying this.” — Patrick Hock [08:36]

5. Thresholds: When to Respond & How to Track Risks

• Not all ludicrous claims need addressing, but monitor for influential pickup.
  • Metrics: Mentions, influencer activity, mainstream media attention.
  • “You want to identify the sweet spot and this is extremely challenging.” — Patrick Hock [09:59]

6. The Psychology of Social Proof

• Hock’s research distinguishes between what people believe privately versus what they think others believe.
  • Even skeptics may react to fake news if they think others will believe it.
  • “Most interestingly, people's belief what other people believe actually had an impact on their private beliefs, and it also shaped their behavioral intentions.” — Patrick Hock [12:04]
• Traditional fact-checking needs to be complemented by visible social consensus ("social proof").
  • “This traditional approach based on fact checking needs to be complemented with what we call social proof tactics.” — Patrick Hock [14:11]

7. Actionable Advice for Leaders

• Start small—the goal is risk reduction, not elimination.
• Convene with your communications team: Define thresholds for response and when to "steal thunder" by pre-empting external disclosure.
• Identify likely fake news topics (e.g., supply chain, labor practices).
• Engage employees as the first line of defense for flagging suspicious content.
• Map out and pre-brief potential external allies (experts, partners, satisfied customers).
• Audit existing credible information (audits, FAQs, behind-the-scenes content).
  • “Maybe identify five to ten credible actors outside of your company... let them know that you may call on them.” — Patrick Hock [17:16]

8. Escalation and Industry-Wide Responsibility

• Severe cases call for direct involvement from senior executives or the CEO.
• Even if a competitor is attacked, leaders should speak up to protect industry-wide trust.
  • “If fake news is affecting your competitor, it might actually create a negative industry spillover. And... lead to a decline in trust... in our institutions, trust in media, but also trust in ourselves and into each other.” — Patrick Hock [19:16]

Notable Quotes & Memorable Moments

• Patrick Hock on ignoring fake news:
  “Ignoring fake news might backfire because silence can be seen as a sort of confirmation.” [03:53]

• On digital hydra effect:
  “You cut off one fake news story and then it reappears in the form of reposts and screenshots and so on.” [03:58]

• On the Streisand Effect:
  “Well, if you try too hard to censor or suppress information, it backfires.” [05:48]

• On the shift in public perception:
  “Even though people realized, okay, this is fake, they nevertheless adjusted their private beliefs to what they perceived to be the beliefs of others.” [13:27]

• On organized social proof:
  “Social proof in practice means I realize that many other people, including peers and experts, are not being swayed by the fake news.” [15:04]

Timestamps for Key Segments

• Start of Topic Discussion: [01:10]
• Pfizer/CEO Example: [01:49]
• Fake News Playbook Limitations: [03:31] – [04:47]
• Streisand Effect Illustrated: [05:02] – [06:58]
• Three Tactics to Prepare: [07:18] – [09:44]
• Thresholds and Monitoring: [09:44] – [10:32]
• Research Insights: [12:04] – [14:09]
• Actionable Advice for Leaders: [16:08] – [18:38]
• Escalation and Industry Issues: [18:38] – [20:08]

Conclusion

This episode reveals how fake news poses subtler, more pervasive threats to company reputations than many leaders appreciate. The most effective countermeasures combine rigorous monitoring, transparency, mobilizing authentic social proof, and timely responses—all underpinned by a clear understanding of how rumor psychology works. CEOs and their teams are advised to plan ahead, build trust before they need it, and remember that silence can be its own message. The advice is both practical and research-backed, relevant not only in crisis moments, but as an ongoing priority for any modern business leader.