Wall Street talked and Mark Zuckerberg finally listened.
The Facebook CEO did an abrupt about-face on Friday by implementing policy changes regarding hate content on his social media platform as the company’s stock nosedived.
At market close, Facebook shares were down 8.3% for the day to $216.08 per share.
Zuckerberg announced the changes during a virtual meeting on Friday as yet more advertisers vowed to stop advertising on Facebook, sending shares tumbling.
The company will flag all “newsworthy” posts from politicians that break its new rules — even those from President Trump.
Facebook had left the president’s posts unchallenged, but now joins Twitter, which recently began flagging some presidential posts.
Zuckerberg, 36, asserted that the company would take a more proactive stance in eliminating hateful content in ads, blocking false claims, helping to fight voter suppression leading up to the 2020 elections and bettering racial equality.
“The 2020 elections were already shaping up to be heated — and that was before we all faced the additional complexities of voting during a pandemic and protests for racial justice across the country,” Zuckerberg wrote on his personal Facebook page on Friday. “During this moment, Facebook will take extra precautions to help everyone stay safe, stay informed and ultimately use their voice where it matters most — voting.”
Just within the past two weeks, dozens of major corporations — including The North Face and Verizon — have pulled Facebook advertising or indicated intentions to do so.
“In 82 years, we have put people over profits,” tweeted billion-dollar sporting goods company Recreational Equipment, Inc. on June 19. “We’re pulling all Facebook/Instagram advertising for the month of July.”
In mid-June, major civil rights groups — including the Anti-Defamation League and NAACP — formed the initiative Stop Hate For Profit, which urges advertisers to halt hawking goods on Facebook throughout July.
Facebook, which generates nearly all of its revenue through advertising, saw shares tumble Friday trading after conglomerate Unilever halted U.S. advertising on Facebook, Twitter and Instagram.
Unilvever, the London-based conglomerate comprising more than 400 brands including Ben & Jerry’s, Dove toiletries and Lipton, shelled out over $42 million in 2019 U.S. advertising on Facebook, according to analytics firm Pathmatics.
“Continuing to advertise on these platforms at this time would not add value to people and society,” said Unilver executive vice president of global media Luis Di Como in a statement, citing hateful speech and divisive content. “We will be monitoring ongoing and will revisit our current position if necessary.”
Facebook’s global marketing vice president, Carolyn Everson, said Friday that the company would maintain dialogues with advertisers on ways to improve.
“We respect any brand’s decision, and remain focused on the important work of removing hate speech and providing critical voting information,” said Everson. “Our conversations with marketers of civil rights organizations are about how, together, we can be a force for good,” according to The Verge.
