DOI: https://doi.org/10.26758/14.1.8
Department of Media and Public Communications (UNESCO Chair on Media and Information Literacy and Cultural Policies for Sustainable Development), University of National and World Economy, Sofia, Bulgaria; E-mail: mnikolova@unwe.bg
Address correspondence to: Mariya Nikolova, e-mail: mnikolova@unwe.bg
Abstract
Objectives. This paper delves into the significance of media literacy for PR professionals, especially during crises. Ineffective media communication and poor strategic planning can erode trust, weaken stakeholder relations, and lead to social media crises and a loss of public legitimacy.
Materials and Methods. The Cision Global State of Media Report (2022) reveals a decline in media trust and highlights journalists’ preferences for multimedia content. This study examines two crisis situations in Bulgaria: 1) NEXO, a leading digital asset management institution accused of fraud in the USA, and 2) TELUS International Bulgaria’s content moderation issues on Facebook. The focus is on communication techniques like official statements, press releases, and media interviews. The communication techniques used for media relations, like official statements, open letters, press releases, press conferences, and media interviews, are considered for the purposes of this publication.
Results. There’s a noticeable gap in research on PR professionals’ media and digital literacy. The NEXO case underscores the challenge journalists face in understanding crises in specialized sectors and the importance of PR specialists in conveying complex information. The TELUS case highlights failures in crisis communication, ineffective diversion tactics, and improper handling of accusations.
Conclusions. PR professionals must prioritize the media and journalists during significant public crisies. While media communication practices are evolving in the digital age, the relationship between journalists and PR experts is crucial, yet strained by factors like mistrust and poor communication. Both parties play a pivotal role in shaping public discourse during crisies and have an ethical duty to provide clarity to society.
Keywords: media literacy, digital communication, crisis, Bulgaria, public relations.
Introduction
In today’s hyper-connected digital landscape, the intersection of emerging technologies, social media platforms, and global events has given rise to an era where information spreads at unprecedented speed and reaches vast audiences. Amidst this informational deluge, the importance of media literacy has never been more paramount, especially for public relations (PR) experts tasked with managing crisis situations. The complications of today’s emerging technological and digital crisis has have created a critical juncture for PR professionals, necessitating a deep understanding of media literacy to navigate these complex scenarios effectively.
When it comes to media relations in crisis communication, this study argues that media and informational literacy skills are crucial for PR experts, because they are essential for the practice of their profession. Media literacy equips PR professionals with the ability to discern credible sources from misinformation or fake news. Understanding the dynamics of media consumption enables them to develop accurate and informed responses during crisies, preventing the dissemination of inaccurate information that can exacerbate the situation. They can craft appropriate messages for different media platforms, ensuring consistency in communication and reputation management. Being media literate allows them to anticipate potential narratives and respond strategically to mitigate the negative impact of crises on an organization’s image and public perception. Media and digital literacy enable PR professionals to stay ahead of emerging trends, public sentiments, and potential issues that may escalate into a crisis. By monitoring digital conversations and news trends, they can proactively address concerns before they escalate, minimizing the impact on an organization’s reputation. Understanding media dynamics helps them prepare for interviews, press conferences, and other media interactions. Additionally, during crisis simulations, media literacy aids in assessing how well PR teams handle information dissemination and respond to different media scenarios.
The media landscape continuously evolves with technological advancements. Media literacy empowers PR professionals to stay updated with the latest trends, tools, and digital platforms, enabling them to remain agile and relevant in their crisis communication efforts. Certain occupations, particularly those in the field of communication disciplines, necessitate a solid understanding of media literacy. Public relations are one of those sectors in which professionals must have critical media assessment skills. As a result, it is important for them to make well-informed decisions about which channels to use to effectively engage with their audience. Furthermore, understanding how various channels may reinforce the message is critical (Wilcox and Cameron, 2009). Potter states that media literacy involves a cognitive, emotional, aesthetic, and moral dimension. The cognitive part is concerned with information, which includes details such as dates, names, and definitions. The emotional dimension is concerned with expressing emotions such as love, joy, and dissatisfaction. The aesthetic dimension includes the means for delivering messages. Finally, the moral component is linked to values, demonstrating what is acceptable and unacceptable (Potter, 2010).
Media literacy, according to the Aspen Institute, can be described as “the ability to sensitize, analyze, and produce information for specific results” (Aufderheide, 1993, p. 6). Over the years, this definition has evolved, extending beyond printed materials to encompass various forms of expression and communication, including images and multimedia content. Moreover, social media has facilitated the coming together of groups for collaborative efforts and allowed a vast community of content creators to interact. It is essential to highlight that Hobbs specifically discusses media literacy, defining it as the acquisition of knowledge, skills, and life competencies that empower individuals to engage actively in contemporary society. This involvement includes accessing, analysing, evaluating, and generating messages using diverse media as a product of media education (Hobbs, 2023).
According to Polanco-Levicán and Salvo-Garrido, the significance of literacy in both traditional and digital media cannot be overstated due to the constant influx of messages from various origins. In general, these messages aim to enhance individuals’ capacity to assimilate and function effectively today. Therefore, it becomes crucial to promote the cultivation of essential skills like critical thinking, particularly considering that despite growing up with the Internet, teenagers and young people may not possess well-developed proficiencies in all aspects encompassed by digital literacy (Polanco-Levicán, Salvo-Garrido, 2022). However, Leaning argues that the challenge lies in the fact that media literacy inadequately addresses digital technology, as digital literacy falls short of instilling a critical mindset when compared to traditional media literacy (Leaning, 2019).
Тhe theoretical review made by the two authors of the concepts of media literacy, digital literacy, and social media literacy shows that overall, the examined research agrees on the significance of cognitive skills in social media literacy. Notably, critical thinking is emphasized as a crucial aspect, as most studies suggest its necessity for achieving proper comprehension and assessment of content. Additionally, it plays a pivotal role in being discerning about the reliability and credibility of information and helps in reducing the persuasive impact of mass media by evaluating the intent and authenticity of the content. Consequently, comprehending the algorithms that drive social media becomes crucial, as they tailor information to users based on their preferences and interests (Polanco-Levicán, Salvo-Garrido, 2022).
Roland Deiser and Sylvain Newton develop a model conceptualizing the six dimensions of social-media-literate leadership that can be applied to PR professionals and communication managers in different organizations. According to the authors, they can be grouped into two major levels: the personal level and the strategic/organizational level (Deiser, Newton, 2013). The personal level is composed of three roles, each one requiring a specific skill set: 1) Producer: – develop creative competence (authenticity, storytelling, and artistic vision); 2) Distributer: – needs to understand how the cross-platform dynamic works and what messages go viral, as well as how to build and sustain a follower’s base; 3) Recipient: – create resonance via selective replies or links, and make sense through intelligent filtering. The strategic / organisational level is also unfolding into three roles with the relevant competencies: 1) adviser: – enable and support a 350-degree environment in social media usage, coordination, and channeling activation within a span of control; 2) architect: – balancing vertical accountability and horizontal collaborations, leveraging social media for key business functions; 3) analyst: – monitoring the dynamic of the social media industry, and understanding the cultural and behavioral impact (Deiser, Newton, 2013).
PR professionals must navigate the interaction between two fundamentally different approaches as traditional (vertical) broadcast media and modern (horizontal) participatory media merge. The conventional channels, characterized by control-oriented logic, and the new channels, which require a more hands-off approach, allowing the system’s dynamics to operate naturally. The experts must understand that once a communication enters the system, they no longer have control over it. Instead, they must understand what circumstances may cause it to go viral, as well as how it might be altered and expanded as it moves through the network. In this environment, distribution competence, which entails controlling how communications move across complex organizations, is as important as the ability to create engaging content. It is also important to acknowledge the awareness of the function of news in society, individual motives for seeking out news, the ability to discover and recognize news, the skill to critically evaluate news, and the capability to produce news ( Malik, Cortesi, Gasser, 2013, p. 8–9).
Media relations and crisis communications are vital competencies for communication professionals in a constantly shifting and dynamic environment. These abilities are critical for success in the sector. Knowing the basic requirements for practicing media relations, six strategic steps to develop media literacy in crisis communication were selected for this work: 1) Identification of key stakeholders. Prior to engaging in communication with the media or the target public, it is essential to possess a comprehensive understanding of their preferences, and perceptions of organizations in crisis. This necessitates conducting thorough research into the targeted media platforms, including their tone, agenda, and extent of influence. Furthermore, identifying key messages, objectives, and suitable spokespersons becomes crucial in crafting an effective communication approach. In anticipation of potential inquiries, challenges, and opportunities, tailoring the communication strategy to align with the audience and objectives is of paramount importance. 2) An open-communication approach and transparency. Demonstrate proactivity and transparency in communication practices, refraining from passively waiting for media or public engagement. Instead, the PR managers need to take the initiative to build and sustain relationships with various stakeholders, including the media and opinion leaders, furnishing timely, accurate, and pertinent information to them. They need to address inquiries and feedback promptly and courteously, and to acknowledge and confront any potential issues or concerns that could have implications for the organization’s reputation and credibility. 3) Prevention. Crises are inevitable in any media environment. PR professionals must be prepared for any potential scenarios that may threaten organizational image, operations, or stakeholders. The crisis communication plan outlines roles, responsibilities, and procedures. The team and the spokespeople must be trained on how to handle crises. The other important skills are knowledge of how to monitor the media and public sentiment for any signs of trouble; 4) Adaptation and building knowledge. Media relations and crisis communications represent dynamic domains, continuously subject to transformation and adjustment in response to alterations in the media landscape, public sentiment, and situational variables. Therefore, a vital aspect of effective communication entails demonstrating flexibility and adaptability. This involves a conscientious evaluation of communication outcomes and feedback, fostering a learning process derived from both successes and failures. In turn, PR experts must adeptly modify communication strategies and tactics as dictated by the circumstances. Concurrently, it is prudent to actively seek novel approaches for enhancing communication proficiency and performance. 5) Collaboration and coordination. Media relations and crisis communications demand collaborative efforts and harmonization among the organization’s team, and external partners. It is imperative to maintain clear and consistent communication with both internal and external stakeholders. Furthermore, aligning communication objectives and messages with organizational goals and values is of paramount importance. Embracing input and support from colleagues, experts, and allies is essential in this process. Additionally, leveraging networks and available resources becomes instrumental in amplifying the impact of communication initiatives. 6) Ethical and respectful conduct. Embracing an ethical and respectful approach to communication practices is of utmost significance. Adherence to media codes and standards of conduct is imperative, as is the acknowledgment and appreciation of the media’s role and rights. It is crucial to display consideration for the public’s interests and expectations, while also upholding the dignity and diversity of the audience. Lastly, PR professionals should hold their own integrity in high regard and treat themselves with respect in their professional engagements.
The scale of the incident, its impact on people and society, and the amount of public interest are all elements that influence how much media attention a crisis receives. The following are some examples of common crisis scenarios in business that usually gain media attention: product recalls, financial scandals, data breaches, environmental incidents, workplace misconduct, leadership controversies, product defects or safety issues, legal disputes and lawsuits, corporate layoffs, and reputational issues.
In 1998, Tyner presents a comprehensive overview of media literacy and introduces the concept of “multiliteracies,” which entails the understanding and description of various literacy dimensions. Notably, tool literacies such as computer literacy, network literacy, and technology literacy aim to cultivate an in-depth comprehension of computer and network technologies (Tyner, 1998, p. 97). Concurrently, literacies of representation, encompassing information literacy and media literacy, play a crucial role in encouraging students to critically analyze and evaluate media messages. Moreover, the concept of visual literacy closely aligns with the literacies of representation, but with a specific emphasis on interpreting and analyzing visual images as units of critical examination. The author cautions against an unfortunate tendency observed in some circles that advocates for the promotion of one multiliteracy at the expense of others. Instead, Tyner advocates for a balanced and inclusive approach that acknowledges the significance of all these multiliteracies in navigating the complexities of the digital age.
In 2020, Fullerton, McKinnon, and Kendrick conducted research among 727 public relations students from 115 U.S. colleges and universities about their perceptions of media literacy in organizational structure and functions. Respondents stated that being media literate includes understanding how media sources work and being able to communicate or deliver a message through media technologies. Students in public relations equate media literacy with understanding the inner workings of the media and how media messages are formed. Participants noted that media literacy is concerned with comprehending/knowing many forms of media, not just one. Respondents occasionally explained that media communication is aimed at a specific or vast audience and that a literate media user and creator understands the distinction. (Fullerton et al., 2020, p. 12–13). Most PR students agreed with the assumption that news makes things more dramatic than they really are (55.5%) and that a news story about conflict is more likely to be featured prominently (88.9%) (Fullerton et al., 2020, p. 24).
Assessing motivations, values, and decision-making is of utmost importance for PR professionals when crafting messages, be it through a press release, native advertisement, or any other. According to Holladay and Coombs, recipients of public relations communications often struggle to discern the origins of an issue as rooted in public relations, alongside the inherent biases within the messaging. This phenomenon raises significant concerns regarding the “unseen” essence of public relations practices (Holladay and Coombs, 2013, p. 126). The authors argue that public relations literacy would teach people how to recognize public relations communication practices, analyze such messages, and create their own campaign messages. The insights critical theory has added to public relations have encouraged public relations literacy. Critical theory has provided a much-needed push to reflect on public relations practice and how public relations use power and influence, as well as the consequences for society. Holladay and Coombs define public relations literacy as ‘the ability to detect, analyze, and evaluate public relations communications’. To this can be added the capacity to produce public relations messages and comprehend their role in a democratic society to be more consistent with media literacy. Thus, public relations messages are not limited to those created by the ‘PR industry’ but also include those produced by social movements, organizations, and individuals aiming to influence others through various forms of media as well as in interpersonal and public contexts (Holladay and Coombs, 2013, p. 126).
In the field of public communication, this study assumes that the media literacy framework included the main concepts of creators and publics, which addressed their segmentation, attitudes, and needs; messages and implications, which discussed points of view, communication interpretation, and message impact, and representation of reality, which addressed media filtering of news and data omission. According to Fullerton, McKinnon, and Kendrick, for future communication professionals, media literacy is important not only for critically analyzing messages but also for learning to create public relations messages, advertising copy, audio recordings, video packages, and multimedia content (Fullerton et al., 2020, p. 8). Enhancing media literacy possesses the potential to augment levels of professional trust. Given the prevailing widespread presence of misinformation and the post-truth climate, strategies to aid the audience in assessing the truthful and false content are imperative. Within this context, public relations practitioners have a vital responsibility in furnishing this service to the broader community.
Nowadays, the correlation between media literacy and digital literacy can be observed. Digital literacy entails the skill of assessing online communications and effectively utilizing Internet platforms for empowerment. These challenges hold equal significance when analyzing PR statements and press releases. The swift proliferation of digital media, encompassing technologies like social media, could complicate the task of scrutinizing information accuracy. This situation might amplify the need for competence in public relations’ understanding. Aspects like issue management and CSR can exert influence on individuals both personally and within a broader societal context. For instance, businesses might construct messages advocating for environmental consciousness as a matter of national importance, encouraging individuals to integrate sustainable practices into various aspects of their daily routines. Recognizing that anyone has the potential to adopt an activist role and engage in public relations activities to pursue diverse egoistical or philanthropic objectives, the notion of media mobilization becomes a pivotal consideration in enhancing public relations literacy. Beyond corporate companies, platforms like non-corporate websites, blogs, social media channels and groups offer a medium for concerned individuals to amplify awareness regarding issues like questionable corporate conduct. Furthermore, these platforms can serve as catalysts for motivating others to form alliances aimed at exerting pressure on companies to alter their communication presence.
The relevance of algorithms, user data, and AI-based systems in developing current culture is critical, particularly in the context of multi-sided platforms such as search engines, recommender systems, intelligent household assistants, streaming services, and dating apps. Understanding how algorithmic systems work and how to train them for specific scenarios is becoming increasingly important. Simultaneously, these systems are taking on an increasingly profound and fundamental presence within society, penetrating daily life at all levels.
The scope of public relations literacy should include a broad spectrum of matters: activism, media relations, reputation management, CSR, crisis management and communication, and public diplomacy. Moreover, the concept of public relations literacy should demonstrate an awareness of cultural and vulnerability nuances that impact communication.
Holladay and Coombs argue the importance of public relations literacy in the implementation of crisis response strategies and their reception by stakeholders. It consists of critically exploring the following few questions: 1) Who creates the crisis communication messages? Often, the organization is the source of the strategic response, but there are always alternative perspectives voiced by experts and online opinion leaders. To measure bias, the source of these additional crisis messages must be identified. 2) What advantages does the organization or other entities engaging in crisis communication gain by implementing this crisis response strategy? This inquiry delves into the consequences linked with specific crisis response tactics and can uncover the reasoning behind the made choices. 3) Who else might experience gains or losses during the crisis? The focus should extend to the individuals affected and how their needs are addressed beyond mere safety and reassurance. Additionally, contemplate the potential repercussions for the organization or the entire industry if there is a lack of swift crisis management. Has the root cause been systematically identified and resolved, or is it a temporary, isolated solution? Allowing the underlying issue to persist could lead to further complications in the future. 4) How is the crisis response strategy targeting the stakeholders? Targeting provides another way to investigate potential biases. Does the response primarily benefit the victims, or is it mainly aimed at reassuring government bodies and non-affected parties that the situation is under control? A focus on reassurance may imply limited concern for the victims and a priority to safeguard organizational interests. 5) Whose voices are acknowledged and notably absent from the crisis response strategies? Are there solely organizational statements included and analyzed, or does the article include expert voices represented in the messages? Do victims’ perspectives get included, or are there inputs from government officials responsible for investigating the organization? If a balanced representation of voices isn’t present in the messages, it’s important to seek additional sources to ensure a well-rounded perspective (Holladay and Coombs, 2013, p. 138–139).
In the report of the LSE Commission on Truth, Trust, and Technology, following William Beveridge’s the five “giant evils” of social policy, the problems confronting governments, companies, and all the participants in the media system of the 21st century are set out: 1) Confusion: – people are less sure about what is true and who they should believe; 2) Cynicism: – people are losing trust even in trustworthy sources; 3) Fragmentation: – citizens have potentially endless information at their disposal, but the quantity of acknowledged facts on which to make societal decisions is shrinking. Citizens are being separated into ‘truth publics’ with conflicting realities and narratives; 4) Irresponsibility: – organizations with power over meaning lack a developed ethical code of conduct and operate outside of clear lines of accountability and transparency; 5) Apathy: – as a result, citizens are disengaging from existing social structures and losing faith in democracy (Tackling the Information Crisis: A Policy Framework for Media System Resilience, p. 10). In combination, each of those problems poses a threat to the individual decision-making process and could impact the democratic process in general. Their devastating power can be seen in times of long-term crises, such as the COVID-19 pandemic, for instance.
In the field of corporate crisis communication, the media wield considerable influence by magnifying and sensationalizing the turbulent situations that arise. In doing so, they shape the narrative of the catastrophe, thereby altering how the crisis is managed. Their pace is increasingly swift, exerting immense pressure to gather information, often while such information remains scarce. The media emerge as vital partners for disseminating information. It falls upon PR experts to establish a degree of control within this communication framework. However, defining the parameters of a harmonious collaboration proves to be a challenge. Journalists possess access to an array of information sources. In this capacity, they assume a pivotal role, cherry-picking certain aspects of the incident and framing the problem according to the sensitivities of their audiences. Regrettably, the companies often remain disconnected from the media until moments of crisis emerge. This creates confusion and disruptions in the working process through the reorganization of resources. Journalists, on the other hand, are acclimated to navigating crisis scenarios, as their professional environment routinely subjects them to constraints such as speed, timing, and tone selection.
The annual Cision’s Global State of Media Report identifies important trends in media ecosystem developments and outlines an important change in journalist and PR experts’ work partnerships and dependencies. One of the biggest challenges highlighted in the 2022 report is the limited and declining resources for journalists, smaller staffs, and the pressure to keep up with technological and social media advancements. More than half of journalists (57%) rely on public relations professionals to provide them with data and expert sources when they need them, and 29 percent believe PR professionals can assist them by recognizing and respecting their deadlines. Journalists highlighted that news releases are the most sought-after content from brands and public relations professionals, cited by 76% of journalists. Press releases top the list as the preferred method of providing authentic, intelligent, and urgent news to the media, and 54% of journalists will cover a story if they are provided with ready-made visual content (photos, videos, and infographics). Sixty-three percent want unique research reports (such as trends and market statistics), and nearly half (49%) want opportunities to attend brand or company events (Cision State of Media Report, 2022, p. 22–23).
Multimedia usage has not only risen among journalists, but they have also expressed a clear interest in obtaining multimedia content from strategic communicators. Furthermore, they are even more open to considering pitches that include multimedia elements. Communications professionals confront similar challenges to link performance to profit, establish a reputation, and fight for attention. That alone gives a solid platform for people making announcements and sharing stories to move beyond “thinking like a journalist” to “thinking with a journalist” and better connect to overcome these common difficulties (Cision Global State of Media Report, 2023, p. 5).
Incorporating multimedia in crisis story pitches is a strategic approach that not only supports journalists in their reporting but also increases the likelihood of the crisis story being picked up, understood, and effectively communicated to a wider audience. Multimedia elements such as images, videos, infographics, and audio clips can significantly enhance the storytelling aspect of a crisis pitch. They provide a visual and interactive dimension that helps convey the story’s depth and emotional impact more effectively. Amidst an information-saturated media landscape, multimedia content captures journalists’ attention and raises engagement. It helps break through the noise and engage journalists on multiple sensory levels, making them more likely to delve deeper into the story.
Multimedia provides a visual context that can be challenging to convey solely through text. Visuals can help journalists understand the scale, impact, and nuances of a crisis more comprehensively, leading to more accurate and insightful coverage. Complex crisis scenarios can be better explained using visuals. Visual representations simplify intricate concepts, data, or timelines, making the story easier to understand for both journalists and their audiences. Multimedia content is highly shareable on social media and online platforms. When journalists share multimedia-rich stories, it can amplify the reach of the crisis narrative and facilitate broader public awareness. Including visuals, such as images or videos from the crisis scene, can add authenticity and credibility to the story. It helps demonstrate the transparency of the crisis communication effort and builds trust with journalists. Journalists often work under tight deadlines. Multimedia content can convey essential information quickly, saving journalists time and enabling them to produce timely and accurate coverage. Improved collaboration has the potential to empower and inspire journalists and communicators, enabling them to shape the future of the media and construct a media environment that is characterized by greater accuracy, honesty, and trustworthiness.
Material and Methods
This research paper aims to delve into the intricate relationship between media literacy and crisis management in the context of two specific crisis situations in Bulgaria. It seeks to explore the ways in which PR experts can leverage media literacy to comprehend the nuances of these evolving landscapes, effectively communicate with stakeholders, and strategically navigate the multifaceted challenges posed by such crises.
The article examines two cases from the Bulgarian crisis practice, which require specific knowledge and a well-thought-out approach to communicating with media and stakeholders. The first crisis occurred between January and February 2023 and affected the Bulgarian cryptocurrency trading platform Nexo. The accusations against the company are serious: financial fraud, money laundering, and terrorist financing. In Bulgaria, the topic of cryptocurrencies and, in general, the activities of companies operating in this market is unknown, which creates difficulties, not only for PR experts to communicate the crisis, but also critically for understanding the work and specifics of such financial organizations. The cryptocurrency market is notably volatile. Prices can fluctuate dramatically due to various factors such as technological advancements, regulatory changes, and shifts in market mood. This fundamental unpredictability can precipitate abrupt crisis situations, underscoring the need for robust communication strategies to effectively handle the expectations of stakeholders and preserve confidence in the market. The intricacies of cryptocurrencies and blockchain technology are often not easily grasped by the public. This lack of understanding, coupled with the potential for misinformation, can precipitate a crisis. Therefore, it’s crucial to deploy effective communication strategies that educate and inform stakeholders, thereby diminishing the likelihood of panic or confusion. The allure of substantial returns often attracts investors to the cryptocurrency market, leading to heightened expectations. Failure to meet these expectations can result in dissatisfaction and a loss of trust. It’s imperative for companies to temper these expectations with transparent and consistent communication. Cryptocurrency companies frequently function internationally, engaging with a varied array of stakeholders such as investors, users, regulatory bodies, and the public from multiple countries. This wide-ranging diversity necessitates a carefully tailored communication approach, one that is capable of effectively addressing the distinct needs and worries of these diverse groups during crisis situations.
The second crises were provoked by a Facebook post by the Bulgarian online media for investigative journalism, BIRD.BG. On November 22, 2022, a post appeared on its official social media profile that featured screenshots of personal profiles of TELUS International employees with aggressive and unsubstantiated accusations that they are part of the META team (a TELUS International client) that moderates Bulgarian-language content for the platform and deliberately blocks profiles of prominent public figures (including BIRD.BG’s editor-in-chief) who openly criticized Russia’s invasion in Ukraine. These accusations had sparked public outrage against the company and raised suspicion of Russian propaganda support.
This crisis brought TELUS International to the need not only to explain whether its team is involved in content moderation in Bulgarian, but also to explicitly explain how the so-called Facebook community standards are interpreted, and how content is screened and filtered by algorithms and artificial intelligence. Effective content moderation in various languages goes beyond mere language proficiency; it demands a thorough grasp of the cultural nuances specific to each language. Errors in interpretation or decisions that lack cultural sensitivity can provoke considerable public backlash. Therefore, having a crisis communication strategy in place is crucial for managing any negative repercussions from these incidents, showcasing a commitment to cultural sensitivity and prompt response. For a partner’s company, adeptly handling crises is vital to sustaining the trust of their clients, namely the social media platforms. Poor crisis management can tarnish not just the reputation of the company but also that of its clients. Effective crisis communication is key to maintaining this trust and mitigating reputational risks. During a crisis, stakeholders such as users, clients, regulatory authorities, and the public demand transparent and accurate information. A strategic communication plan is crucial for engaging these groups openly and effectively, thereby minimizing misinformation and panic. As the realm of content moderation is constantly evolving alongside technology, crises can emerge from technological glitches or challenges. It’s important for companies to communicate these issues clearly, making them comprehensible even to those without technical expertise. Decisions in content moderation can occasionally trigger public uproar or intense scrutiny from the media. Therefore, it’s imperative for the company’s PR experts to have a crisis communication plan ready to address both the media and the public with clear and responsible statements. Situations involving data breaches or privacy issues can escalate rapidly into a crisis. Companies need to be prepared to communicate proactively about such incidents, assuring all stakeholders of the measures being taken to safeguard data and privacy.
The case study methodology is employed for the following reasons: first, to provide a comprehensive understanding of crisis communication strategies and to develop knowledge for specific crises; second, to offer real-world context, as case studies are drawn from actual organizational responses to crises that have occurred in real-life events; third, to provide practical insights and lessons for professionals and organizations dealing with crisis situations; and fourth, to contribute to theory-building and the development of conceptual frameworks in crisis communication, even though the methodology focuses on specific instances.
The research questions are: 1) What are the most common PR response strategies and techniques used to communicate with the media during specific crisis situations? 2) To what extend does the media use the company’s statements, press releases, and other PR materials to explain the nature of the crisis? 3) What are the deficiencies in media and digital literacy in crisis communication?
This research endeavors to contribute to the existing body of knowledge in crisis communication and media literacy while also offering practical implications for PR experts, organizations, and policymakers. By addressing these vital aspects, the article aims to provide PR professionals with the necessary tools to proactively manage and mitigate the fallout of cryptocurrency breaches and the social media content moderation crisis, thereby fostering a more resilient and media-literate communications landscape.
The first challenge at hand is the rapid proliferation and inherent volatility of the cryptocurrency market. As digital currencies have gained prominence, they have simultaneously become a breeding ground for illicit activities, leading to a series of high-profile breaches of regulations. These instances can trigger severe crises for the organizations involved, causing public relations nightmares that require deft management to preserve reputation and public trust. On the other front, social media behemoth Facebook’s content moderation policies have been under constant scrutiny due to their impact on user-generated content, the spread of misinformation, and the potential implications for freedom of speech in times of global crisis. Inaccurate or inflammatory information shared on the platform can have devastating consequences for individuals, businesses, or even entire industries. Managing crises arising from Facebook content moderation challenges calls for a judicious blend of media literacy, strategic communication, and ethical considerations.
Results
Case Study 1: Cryptocurrency and Asset Management Company Nexo is accused of fraud and money laundering.
Description of the Crisis Situation: Nexo was developed in 2017 and run by two Bulgarians, – Kosta Kunchev and Antoni Trenchev. It accepts cryptocurrency deposits and pays interest to clients. Nexo operates through businesses incorporated in the United Kingdom, Switzerland, the United States, and offshore locations. Nexo owns NDS, a corporation with around 600 employees in Bulgaria. On December 5, 2022, the cryptocurrency and asset management company Nexo announced in a blog post on their website its gradual departure from the US. Тhe crisis for the company was caused by violating state regulations and offering deposits to various customers without the company being licensed to do so. The blog post suggests that discussions with the relevant institutions were ongoing for 18 months. Meanwhile, the Bahamas-based cryptocurrency exchange FTX collapsed, creating a crisis context for all the companies dealing with digital assets.
On January 12, 2023, Bulgaria’s prosecution launched a probe against the company, and the operation involved around 300 individuals from several Bulgarian investigation agencies. The Bulgarian police were investigating a large-scale financial fraud scam, and the charges include money laundering, tax evasion, unauthorized bank operations, and computer fraud. Four people have been arrested on allegations that the crypto bank’s actions violated sanctions imposed on companies based in the Russian Federation, as well as transactions made to a person implicated in terrorist activity.
Media Coverage
The crisis period is subdivided into two stages: the first is in the period November –December 2022, when the US inspections against Nexo begin. The second is in the January-February 2023 timeframe, when the case gains media attention in Bulgaria and the Bulgarian authorities open inquiries against the crypto bank. The article provides an overview of the second period of the crisis and the media coverage in the following Bulgarian media outlets: Mediapool.bg, the BNT website (Bulgarian National Television), and Money.bg. The content analysis of the selected media outlets is based on the consideration that they are reachable, covering news of national significance; Bulgarian National Television is a public media outlet; and Money.bg has an economic and business angle.
The information portal Mediapool.bg is a private media outlet and presents the crisis through 51 articles, in which informational pieces are predominant. The commentary-analytical materials are considerably limited as they are based on the opinions of politicians from different parties, which creates preconditions for spinning the crisis according to the espoused political ideology. There is only one publication for the reviewed period in which expertise is sought – that of the head of the American Chamber of Commerce in Bulgaria.
The crypto banking case is framed in a political context, with the headlines and leads of the articles focusing on Nexo’s political affiliation with the democratic political party because of donations made during campaigns. Authority conceptualization and suggestions of favoritism are also made because one of the founders of the crypto bank is related to a political figure. It should be noted, however, that the quoting of the company’s official position is present in all the media’s material.
The Bulgarian National Television serves as a public media platform with the primary goal of presenting events in a fair and objective manner. Its official website has featured a total of 16 articles concerning the mentioned case. These articles, however, are purely informational in nature. Notably, they are built upon information from official sources and the involved company. The articles lack any form of commentary, analysis, or in-depth exploration of the regulatory mechanisms within the relevant sector or the broader cryptocurrency market. BNT’s focus lies in portraying the institutional responses to the case, specifically highlighting the viewpoints of entities such as the Prosecutor’s Office, the National Investigation Service, officials from the State Agency for National Security (SANS), and members of Parliament.
Money.bg operates as an internet-based media outlet concentrating on business matters. Throughout the January –February 2023 timeframe, a total of 14 articles related to the subject were released by the platform. Notably, these articles steer clear of politicizing the case and refrain from emphasizing its connections to donations and indirect involvement with political stances in Bulgaria.
Among the examined articles, it’s worth highlighting that Money.bg is the sole source presenting a comprehensive analytical piece on the intricacies of crypto banking and the diverse regulatory frameworks governing the field. Additionally, another article offers a succinct retrospective overview of Nexo’s history, skillfully elucidating the company’s regulatory challenges in the United States and other countries with clarity and accuracy.
Crisis Communication Strategy
The following stakeholders in the Nexo case are defined for the purpose of the study: the company and its founders, the Bulgarian prosecutor’s office and authorities, the US regulators (Consumer Financial Protection Bureau), the crypto bank’s customers, and the media.
Nexo employs its own robust media platforms, encompassing a website equipped with a media center section, a blog, as well as active social media profiles on Twitter and Facebook. As early as December 5, 2022, the company’s communication team displayed proactive engagement by sharing a comprehensive article on its official blog. This article delved into the investigations initiated in the US, outlined which of its services were subject to regulatory measures and thus needed suspension, elucidated the impact on client wallets, and expounded on the reasons prompting Nexo’s decision to initiate its withdrawal from the US market.
Promptly on the day of the police operation in Bulgaria, the company issued a statement via its official Twitter and Facebook accounts. This statement adheres to the conventions of social media content and aligns with the company’s strategy of denying allegations involving money laundering, violations of sanctions against Russia in relation to the war in Ukraine, and the funding of terrorist activities. These allegations constitute a recurring theme within the stance adopted by the Bulgarian prosecutor’s office. The core messages are encapsulated in the pronouncements made by the prosecutor’s office spokesperson during interactions with the media. Furthermore, these assertions are presented as the driving arguments behind the initiation of an investigation, a topic that was addressed during a press conference where a brief, albeit somewhat inadequately prepared, PowerPoint presentation was used. Nevertheless, these allegations lack substantiated evidence and factual support, rendering them vulnerable to contradiction. Nexo promptly countered these assertions by dispatching two additional statements to BNT and the other major nationwide broadcaster, BTV. Within these statements, the company’s leadership asserted their intent to legally challenge Bulgaria, citing claims of financial losses and violations of human rights.
Nexo’s communication team consistently and categorically uses the strategy of denying all accusations made against the company in Bulgaria. A spokesperson for the company is one of the founders, Antony Trenchev, who personalizes the company in this crisis. The communication strategy in Bulgaria uses official statements, video statements, open letters to the two largest national television stations in Bulgaria, BNT and BTV, and interviews. In all of them, there is consistency and coherence in the messages – the strategy of denial is followed – the facts from the blog post are repeated, stating that agreements have been reached with all 50 states on administrative violations, that the company has the toughest policy against money laundering and that it has a team of 30 people who check the operations. The platform has not been used to transfer Russian assets because cryptocurrencies are an inconvenient financial instrument because platforms have a public register. The company statements and the public positions of their founder, Antony Trenchev, convey messages also about the incompetence of Bulgarian institutions and their intellectual inability to argue the accusations publicly and to be convincing in them. This is confirmed by the hesitant press conference that was given by the prosecution where the accusations were not convincingly argued.
After reaching an agreement with US authorities about allegations concerning non-compliance with regulations, the company settled it by remitting $45 million in fines and discontinuing the offering of one of its products. This development was disclosed through a press release issued by the Securities and Exchange Commission. In another statement from New York State Attorney General Leticia James is clarified that Nexo was subjected to a five-year prohibition on product offerings. Moreover, the company was mandated to inform all its US investors, including approximately 3,000 individuals from New York, of the necessity to withdraw their funds from the platform by April 1, 2023. Characterizing the agreement as a significant historical milestone, the company underscored that this settlement ends legal proceedings in all eight US states. The company explicitly highlights the fact that the agreement did not entail any allegations or charges of involvement in fraud or deceptive trade practices. On a contrasting note, the Bulgarian prosecutor’s press office released a statement on its Facebook page praising its US counterparts for imposing the fine, interpreting it as evidence of Nexo’s culpability.
Case Study 2: TELUS International and the biased content moderation in Bulgarian on Facebook
Description of Crisis Situation: On November 26, 2022, the Bulgarian online investigative media outlet, BIRD.BG, shared screenshots on its official Facebook profile, revealing the profile pictures of individuals publicly identifying themselves as employees of the company TELUS International. The media response followed the imposition of limitations on the Facebook account of editor-in-chief Atanas Chobanov. His profile encountered a 30-day restriction after sharing news regarding the European Parliament’s classification of Russia as a state sponsor of terrorism. This act cannot be characterized as disinformation or hate speech. However, Chobanov isn’t the sole individual to have experienced the actions of these moderators, whoever they may be. Back in April 2023, a petition was even initiated, calling for a thorough review of content moderation practices within the Bulgarian segment of Facebook. The petition highlighted the mounting instances in which the profiles of notable Bulgarian authors critical of prevailing matters suddenly vanished from the social network.
These individuals are under scrutiny for allegedly purposefully imposing 30-day restrictions on the accounts of Bulgarian users, including public figures, journalists, and online influencers who openly criticize the Russian war in Ukraine. The post highlights profiles of individuals who are either no longer affiliated with the company or are engaged in projects unrelated to content moderation. This situation prompts questions regarding the media and digital literacy of the journalists at BIRD.BG, their comprehension of algorithmic content management processes, the necessary competencies for those performing these tasks, and, more broadly, the identities of the TELUS International employees in Bulgaria who bear the responsibility for assessing flagged inappropriate content violating community policies.
Media Coverage
The analysis of the media coverage of the case will be limited to three Bulgarian online media: “Dnevnik”, “OffNews”, and “Boulevard Bulgaria”. The media sites are among the most widely read in Bulgaria; they have a strategy for managing their social media content, and thus, the topic of content moderation in Bulgaria is important to them. The analysis timeframe spans from November 2022 to February 2023, encompassing the onset of the crisis scenario and TELUS International’s resolution to terminate moderation of Bulgarian content from its local office. “Dnevnik” operates as a multitopic online media platform characterized by its informative and analytical orientation. During the stipulated crisis period, they have released five articles chronicling the case’s evolution. The information sources for these articles consist of press releases dispatched by TELUS International, the e-Government and Information Technology Parliamentary Committee, public stances taken by the involved entities, a statement by Jakob Turowski, the Head of Public Policies for Central and Eastern Europe at Meta, conducted by “Kapital,” and an interview with Kristina Ivanova, Vice President of Operations at TELUS International. The online media articles encompass viewpoints from both sides of the case, albeit in a concise and interpretative manner. These articles focus on the positions adopted by those engaged in the case, including the Association of European Journalists. “Dnevnik” additionally presented an extensive article outlining the content moderation process and post removal. This piece references insights from experts, bites from interviews conducted with Meta and TELUS International managers by other media outlets, as well as accounts from former company employees. The core message that emerges asserts that TELUS International operates under Meta’s directives and does not directly engage in the account-blocking actions in Bulgaria.
“OffNews” extensively covers the crisis through a series of ten articles, systematically tracking the unfolding developments within the case. The information sources inspiring these articles include publicly stated positions on the social media profiles of the affected parties, protests held outside the TELUS International premises, the company’s representatives’ testimony before the e-Government and Information Technology Committee, and the decision to cease content moderation for Bulgarian content. Notably, the case once again experiences a degree of politicization, stemming from its association with the moderation of reported posts, particularly those expressed by opinion leaders opposing the Russian war in Ukraine. This dynamic establishes conditions conducive for democratic parties within the Bulgarian parliament to align with specific sides and shift the narrative focus of the issue.
“Boulevard Bulgaria” provides comprehensive coverage of the case, featuring nine articles within the mentioned crisis period. Notably, in three of these pieces, the online media’s critical stance towards “TELUS International” and “Meta” becomes evident. While these articles are rooted in the companies’ official positions, manager interviews, and responses to media inquiries, they go beyond mere quoting by offering interpretations that enhance their depth and informativeness. Unique among the scrutinized media outlets in this case, “Boulevard Bulgaria” also reports on Meta’s decision to initiate a two-question poll inviting Bulgarian accounts to express their perspective on Facebook’s post-censorship policy. The first question queries, “In your opinion, does Facebook remove too few, too many, or an appropriate number of posts that violate its rules?” The second question delves into whether the user in question has received warnings within the past 7 days about posts infringing upon the social network’s community standards. Nonetheless, the essence of the controversy concerning the blocking of user profiles for political stances resides not in the quantity of moderation actions but in the quality of the moderation itself.
Crisis Communication Strategy
The key stakeholders identifiable within this crisis scenario encompass “TELUS International,” BIRD.BG media, “Meta”, engaged platform users, and the media.
On the other hand, the communication experts at TELUS International fail to properly consider their communication strategy in the crisis. The official position of the company is published after three days, but in it, although the strategy of denial is represented, the accusations are not addressed substantively. The position highlights messages about “incorrect” claims and opposition against the suggestions inciting violence and self-harm against company employees. This undermines their dignity and their contribution to the company and society. The company’s main message is of “victim”, and it will take the matter to court. The communication tactics used during the crisis are official positions, responses to media inquiries, and interviews. In them, there are contradictions with previous public statements and interviews of META representatives who are admitting the content moderation operations in Bulgaria, unclear messages regarding the substantive accusation of deliberately blocking people’s content that defends Ukraine, shifting responsibility to META, and the “working at the client’s request” argument.
Initially, “TELUS International” did not provide an immediate response to BIRD.BG’s allegations of biased content removal from the platform. Their inaugural official statement was posted on their official Facebook profile three days later. Notably, this official stance does not directly address the core of the accusation. Instead, it highlights the violation of privacy regarding the profile pictures posted, suggesting a potential risk to the affected individuals’ safety. Within this official communication, the company firmly denies any involvement in content moderation. This assertion contradicts a 2019 interview with Gabriela Cech, the Head of Public Policy for Central and Eastern Europe at Facebook, in which she disclosed plans for 150 moderators stationed in Sofia to review content in languages including Bulgarian, Turkish, and Russian.
The second post on TELUS International’s official Facebook profile adopts a Q&A format. TELUS International opted to explain “content moderation in Bulgaria,” but rather than providing explicit explanations, it appeared to become enmeshed in the details. Nonetheless, the company once again offers vague justifications. Within its statement, it acknowledges that it “provides content moderation services to a diverse range of companies,” yet refrains from mentioning Facebook explicitly. The company declines to precisely outline the nature of its work for the social platform. Over the years, it has endeavored to veil the moderation controversy by primarily using press releases for its communication. TELUS also asserts that its employees are “guided by and adhere to the rules and standards set by our customers.” However, this implies that the ultimate moderation decisions rest with the customers, avoiding the question of why the voices of citizens, which clearly do not transgress “customer standards,” are being blocked.
The specifics of TELUS’ moderation procedure remain uncertain. As per the company’s assertion, these procedures “prohibit our employees from incorporating personal, political opinions, or beliefs into their tasks.” A subsequent sentence within the position statement contradicts this claim, as it states that employees assess content “chosen randomly to determine if it contravenes our customers’ policies, standards, and guidelines.” While the comprehensive statement doesn’t provide precise insight into the exact activities undertaken by the technology firm on the social network, it does underscore that its employees “play a significant role in fostering a positive and secure online environment as well as contributing to local communities.”
The third primary communication approach employed by TELUS International in safeguarding its reputation involves an interview conducted with Kristina Ivanova, the Vice President of Operations at TELUS International. This interview was featured in the business media “Kapital”, yet it essentially echoes the core points and messages found in the Q&A post. While Ivanova addresses TELUS International’s involvement, she refrains from discussing individuals associated with Meta. Nonetheless, Kapital’s report cites a figure of 150 people. Ivanova specifies that the Bulgarian branch of TELUS International, referred to as the registered Bulgarian entity “Clickpoint”, acts as the maintenance provider for Meta. She notes that the company operates under “very rigorous commercial contracts” that precisely outline their rights and responsibilities. Despite numerous public inquiries, this “clarity” remains confidential, leaving unanswered questions concerning the subjective role of moderators in reaching decisions.
Meta’s representatives forward an official statement to the parliamentary committee for e-government, which convenes a dedicated session focusing on social networks in Bulgaria and the moderation of online content. The document was written by Yakov Turowski, Meta’s Public Policy Director for Central and Eastern Europe. Within this communication, Turowski outlines the process of content moderation on Facebook, sharing certain publicly available details. For instance, he underscores that posts and comments on the platform undergo regulation through a combination of artificial intelligence (AI), human content reviewers, and user-generated reports. Turowski highlights that these human teams comprise more than 15,000 expert content reviewers who are proficient in the relevant language. This recognition is grounded in the understanding that grasping the nuanced significance of particular words or comprehending the political context surrounding a post often requires a native speaker’s perspective. Moreover, for Bulgarian content, it is important to have linguistic and cultural competence, and thus the content undergoes scrutiny by Bulgarian moderators.
The statement further delves into additional facets of Facebook’s moderation policy, covering aspects such as background checks, individual user evaluations, and user-generated reports. However, the pivotal query regarding “why and how citizen voices are suppressed” remains unaddressed. Marilyn Tiffing, a representative from the Canada-based company, defends TELUS International and underlines that the company is unable to represent Meta due to privacy concerns. She underscores that those questions about content review for specific clients, including Meta, will not be discussed. Tiffing also reiterates that TELUS solely enforces the standards and guidelines established by Facebook and is not involved in their formulation.
Disscution
The topic of crisis management and crisis communication has been extensively studied in various fields, but there is still a lack of scholarly articles dedicated to the specifics in the field of new areas such as Web 3.0, blockchain technologies and cryptocurrency companies. No less problematic are the crisis situations that are triggered by the moderation of content on social media, the use of artificial intelligence in the management of posts on social platforms, and the important questions of how this moderation affects democratic processes in different countries during global crises such as COVID-19 and the war in Ukraine.
The review of academic sources underscores the evident gap in research addressing media and digital literacy among PR professionals during crises. This subject holds significant importance not solely due to its role in enhancing communication and professional skills, but also due to the responsibility of communication experts within public communication to foster comprehension and uphold organizational trust.
Conclusions
The cryptocurrency company Nexo is operating within a highly specialized sector, demanding expertise, and in-depth knowledge. In Bulgaria, there are no media outlets covering only the topics of blockchain and digital assets in general. The availability of journalists well-equipped to delve comprehensively into the Nexo crisis remains limited. This observation finds support in the analysis of articles featured on the news portal Mediapool.bg and the online platform of the public broadcaster BNT.
From an analysis of Nexo’s communication strategy, the coherence of their messages becomes evident, with a clear and categorical response strategy founded on the denial of allegations and the openness of the company’s owners to media interviews. Nexo’s communication team largely succeeds in elucidating the essence of the regulatory issue, informing stakeholders correctly and proactively. The crisis receives a spin-off effect in Bulgaria due to the unsubstantiated accusations against the company and, to a large extent, the inadequate communication stances of Bulgarian authorities, which are grounded in speculation based on American allegations. These stances lack a solid factual foundation, and those presented are easily refutable. PR specialists within Bulgarian institutions lack the necessary digital knowledge and skills to effectively communicate the situation. On the other hand, journalists restate the primary emphasis from press releases and spokesperson statements, creating conditions for misinformation in crises within society. The politicization of this crisis case in Bulgaria provides an opportunity for Nexo’s communication specialists to turn a defect into an effect, thus attempting to preserve trust in the company. In the tactical crisis management plan, classical crisis communication practices have been employed, including blog posts, official positions, open letters to the media, press conferences, and interviews with managers.
The crisis involving the outsourcing firm TELUS International in Bulgaria and the company Meta emerged because of a Facebook post by the investigative media outlet BIRD.BG. However, this post exhibited an unethical and confrontational tone. Rather than directly delving into the matter of content moderation in Bulgarian, the post instead directs blame towards company employees who either do not engage in such tasks or have already parted ways with TELUS International. Such a publication casts doubt on the investigative competence of media journalists and raises concerns about the quality of their work.
TELUS International failed to promptly address allegations concerning partial content removal and the blocking of profiles belonging to public figures openly expressing opposition to the unprovoked Russian invasion in Ukraine. This has resulted in an information void and resembles a crisis response marked by a refusal to provide comments. The two statements published on their official profile adopt a denial strategy, but they present conflicting facts. In the first statement, the company avoids acknowledging its involvement in content moderation, while the subsequent Q&A-style communication contradicts this stance. Meta’s position affirms content review from Bulgaria. TELUS International’s credibility experienced further erosion following the interview with their Manager of Operations. The interview lacks specificity and consistency in viewpoints and showcases contradictory messages.
Both the informative and commentary-analytical perspectives are discernible within the chosen media articles. These selected media outlets strive to craft substantive content that transcends mere surface-level quotations from the involved parties’ official stances. The articles encompass insights into content moderation processes on social media platforms, the functionality of Facebook’s algorithms, posing valuable questions concerning so-called “community standards,” and other aspects related to digital literacy.
In times of public crisis, communication experts must recognize the significance of the media and journalists as essential stakeholders. The media communication techniques explored in this piece, including press releases, official statements, media queries, and interviews, are not novel, but their dynamics are evolving within a digital landscape, underscoring the necessity for acquiring updated media and digital literacy competencies. Amid a crisis, the collaborative essence of the connection between journalists and communication experts becomes particularly evident, yet it also faces challenges due to multiple factors, including distrust, biased perspectives, communication breakdowns, and difficulties in crafting messages with precision and structure. Media and communication experts both engage in the discourse of public communication and bear an ethical duty to shape the crisis narrative. This narrative significantly influences society’s understanding of the issue.
Acknowledgments
A summary of this paper was presented at the online international conference: Individual, family, society: contemporary challenges, fifth edition, October 4–5, 2023, Bucharest, Romania, and published in the journal Studii şi Cercetări de Antropologie, No. 8/2023.
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