Some Facebook staff say Cambridge Analytica scandal is mostly being hyped by the media; Zuckerberg said job applicants haven't been deterred by it, says source

Many workers are undaunted by user-data scandal; issues are mostly hype, some say — Facebook Inc. FB -.18% may be losing friends …

Wall Street Journal 2018-04-10

Context & Ripple Effects

This internal-mood report lands after three weeks of external firefighting: Facebook ran reassurance calls to ad agencies and trade bodies promising customer data is protected, hired a digital forensics firm for a Cambridge Analytica audit only to have the team stand down at the UK ICO's request ([[a:927685]]), and Zuckerberg was set to address employees at a regular Q&A ([[a:927730]]). The company also revised the exposure estimate upward to as many as 87 million people ([[a:928227]]).

What changed today is the picture from inside: per the Journal, many staffers see the scandal as mostly media hype, and Zuckerberg tells sources that job applicants haven't been deterred. That reads against the earlier BuzzFeed finding that a week in, #deletefacebook had not dented app installs, no big advertisers quit, and analysts were calling the dip a buy — the internal narrative and the business metrics are pointing the same direction.

First-order effects

Facebook's ad-agency reassurance campaign now has an internal-consistency problem: sales teams are telling buyers data protection is taken seriously while much of the workforce reportedly treats the crisis as overblown.
Recruiting stays open for business on Zuckerberg's account — the talent pipeline he says is undeterred removes one of the few levers short of ad revenue that could have forced faster remediation.

Second-order effects

Rivals hoping #deletefacebook would trigger advertiser flight get little to work with if installs hold and no major brands quit — competitor attacks shift from poaching spooked advertisers to regulatory and policy arenas instead.
If the workforce believes the hype framing, pressure for costly internal reform (data-access controls, audit cooperation like the ICO-blocked forensics review) comes mainly from outside — regulators and legislators rather than employees or customers.

Third-order effects

The split between internal normalization and escalating official numbers (the move toward 87M) points to a structure where platform scandals are priced by business metrics while the binding constraint migrates to regulators — the ICO's ability to halt even Facebook's own audit previews that dynamic.
If each cycle ends with metrics intact and morale unshaken, data-privacy accountability increasingly depends on statutory penalties rather than market discipline, shaping how the next platform data scandal plays out.

The trend: Platform data scandals are being absorbed by resilient business metrics, shifting real accountability from users, advertisers, and talent to regulators.

Discussion

@brandonleblanc Brandon LeBlanc on x
So in result of FB “scandal”: 1.) Facebook employees don't see a problem 2.) There's been no change in rate of job applicants 3.) And barely anyone deleted their FB as a result of the scandal. Does FB have a reason to change? http://twitter.com/...
@wsj The Wall Street on x
Many employees appear to have adopted a siege mentality, with some saying they feel the outrage toward Facebook is misplaced, according to interviews with a number of current and former staffers. http://www.wsj.com/...
@steventdennis Steven Dennis on x
“He's a very nice young man” -FEINSTEIN after meeting ZUCKERBERG."He's very young. And he has 27,000 employees. And it's - that's amazing. He's obviously smart. He obviously knows what he's doing and he has a very pleasant personality. He's not hard-edged in any way that I saw."
@alibreland Ali Breland on x
Lawmakers are getting soft after meeting with Zuckerberg. Senator Nelson took a similar tone after their meeting earlier today http://twitter.com/...
@rmac18 Ryan Mac on x
If you want another view on Zuckerberg talk to the NGOs in Myanmar who basically said the Facebook CEO obviously does NOT know what he's doing: http://www.buzzfeed.com/...
@rmac18 Ryan Mac on x
Mark Zuckerberg apologized to Myanmar NGOs after suggesting Facebook had been successful in stemming the spread of ethnic hate speech. The NGOs are saying it's not enough and one US senator may be asking about it tomorrow: http://www.buzzfeed.com/...
@kevinroose Kevin Roose on x
Scoop: Mark Zuckerberg personally emailed activists in Myanmar last week, after they accused him of inaction toward FB-fueled violence. We got the email. http://www.nytimes.com/...
@techcrunch @techcrunch on x
Zuckerberg's testimony indicates @facebook worked on its own to combat the trolls, instead of partnering with the FBI http://techcrunch.com/...
@kantrowitz Alex Kantrowitz on x
More Kara: “It most certainly is crunch time, but Mark is a grown-up human being and we should expect that is the person who will show up. If we keep anticipating a coddled robot child instead, then that's our own mistake and we are the ones who should be sorry.”
@kantrowitz Alex Kantrowitz on x
Ah, this is so good. Kara on Zuck: “Can he handle it? Will he be rattled? And, most critically, does a bad performance here by Mark put Facebook's fate on the line? Fuck yes. Fuck no. And WTF, of course not — and I don't even get what line that would be.”
@kantrowitz Alex Kantrowitz on x
As Zuck's date with Congress looms, Wall Street says: okay sure, can I get some of that stock? pic.twitter.com/6bwIsP0WeU
@aprilaser April Glaser on x
Just got off the phone with a Republican representative who will be questioning Zuck on Wednesday: “The notion that Congress is somehow going to have hearings and then pass a law and “fix facebook,” that is not going to happen.”
@christinawilkie Christina Wilkie on x
Biggest winner in the Michael Cohen FBI raid: Mark Zuckerberg
@rhhackett Robert Hackett on x
“- We will also require people who manage large pages to be verified as well. This will make it much harder for people to run pages using fake accounts... - In order to require verification for all of these pages and advertisers, we will hire thousands of more people.”
@rhhackett Robert Hackett on x
“I've directed our teams to invest so much in security—on top of the other investments we're making—that it will significantly impact our profitability going forward.” https://www.cnbc.com/...
@cnbcnow Cnbc Now on x
Moments Ago: Facebook CEO Mark Zuckerberg arrives on Capitol Hill for meetings before his first day of testimony tomorrow. http://cnbc.com/... http://twitter.com/...
@matthewstoller Matt Stoller on x
Just read Zuckerberg's testimony. Nothing about the company's business model. This is a monopoly problem. http://www.cnbc.com/...
@joshconstine Josh Constine on x
Most of Zuckerberg's prepared testimony is a rehash of his conference call remarks and blog posts, but Fb shutting down Russian Fancy Bear trolls before the 2016 election is new http://techcrunch.com/...
@kantrowitz Alex Kantrowitz on x
The Zuck testimony is live. Expect to hear this line a lot over the next three days: “We didn't take a broad enough view of our responsibility” http://docs.house.gov/... pic.twitter.com/Mf0dHxOirK
@rachelmetz Rachel Metz on x
in mark zuckerberg's testimony he mentions Facebook is going to “invest so much in security — on top of the other investments we're making — that it will significantly impact our profitability.”
@ampressman Aaron Pressman on x
Zuck steps up: “There's no question that we should have spotted Russian interference earlier, and we're working hard to make sure it doesn't happen again.” “We have a responsibility to make sure what happened with Kogan and Cambridge Analytica doesn't happen again.”
@johnpaczkowski John Paczkowski on x
“It was my mistake, and I'm sorry. I started Facebook, I run it, and I'm responsible for what happens here.” https://twitter.com/...
@oliverdarcy Oliver Darcy on x
Zuckerberg in his prepared testimony: “We were too slow to spot and respond to Russian interference, and we're working hard to get better. Our sophistication in handling these threats is growing and improving quickly.” http://www.cnbc.com/...
@kellykborn Kelly Born on x
Today we announced a partnership with the Sloan, Koch, Knight, and Arnold Foundations, Democracy Fund, and Omidyar Network, SSRC and Facebook on a new research initiative to increase public understanding of Facebook's role in elections and democracy. https://www.hewlett.org/...
@klia00 Klia on x
‍ “Both the committee of academics and their research grants will be funded by a group of independent foundations, including the Hewlett Foundation, the Omidyar Network, and the Charles Koch Foundation.” http://www.theatlantic.com/...
@edyong209 Ed Yong on x
“[@yayitsrob] asked: Was there an especially dark moment when he came to realize the role that Facebook played in the 2016 election? Zuckerberg paused for eight long seconds. “I need to think about that,” he said eventually.” http://www.theatlantic.com/...
@mollymckew Molly McKew on x
New initiative by Facebook to support academic research on social media impact in elections. But key phrase is: “The focus will be entirely forward looking.” So no accounting of what has already happened. Smart PR before hearings, but don't miss this gap. http://newsroom.fb.com/.…
@anildash Anil Dash on x
This is important news from Facebook, opening up to research from credible orgs like @SSRC_org. Concessions like this would never have been made before, but using this opportunity for accountability & responsible research might be one positive outcome. http://newsroom.fb.com/...
@pithywidow Karen Swan Schwartz on x
Fox announces new hen house security study http://newsroom.fb.com/...
@tomnamako Tom Namako on x
Mark Zuckerberg: “If you've followed me for a while, you know one of my top priorities for 2018 in making sure Facebook prevents interference and misinformation in elections.” hahahhahahhahahaha http://www.facebook.com/...
@ericgarland Eric Garland on x
BREAKING! As part of new electiony horse-barn initiative, FSBook will now partner with the Koch Brothers and the guys from the Intercept. http://newsroom.fb.com/...

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