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Misinformation in business: Don’t eradicate, educate

Misinformation is a big threat to businesses, not just society. You’ll never stop it, so use these seven tips to manage it.

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There’s no shortage of forces imperiling the planet, but according to a Pew Research poll of 25,000 people in 19 countries, the spread of false information is near the top of the list—second only to global climate change.

The concern is warranted because misinformation, once a fringe threat, has gone mainstream—as shown by its role in recent attempts to bring down governments around the world. Its newfound power comes from its ability to ride digital networks with overwhelming speed and scale.

Meanwhile, minimal effort is needed to prime the misinformation pump. “An individual with Internet access can spread misinformation (whether it’s deliberately deceptive or not) at a high rate,” says Christian Unkelbach, a professor who studies evaluative judgment and decision-making at the University of Cologne’s Center for Social and Economic Behavior.

We know what you’re thinking: What does this have to do with business? Most companies discourage sharing personal passions, such as politics, at work, and employees tend to keep their opinions to themselves.

But consuming, creating, and sharing misinformation in one’s personal life is a great training ground for doing so at work. The techniques for fomenting fear, uncertainty, and doubt are the same. Even passive consumers of misinformation at home become more vulnerable to misinformation at work.

That has real consequences for businesses, potentially harming productivity, morale, engagement, and decision-making.

Online misinformation and disinformation cost the global economy an estimated $78 billion each year, according to a study by University of Baltimore economics professor Roberto Cavazos. The study found that most of the damage came through stock market losses stemming from financial disinformation campaigns. But the proliferation of misinformation has also caused companies to increase spending on reputation management, brand safety, employee health and wellness, and crisis communication efforts, says Cavazos.

Worse, we humans are especially vulnerable to misinformation. As it proliferates, so does our acceptance of it. Falsehoods are 70% more likely than the truth to be retweeted, according to a study by the MIT Media Lab, which found that misinformation spread significantly farther, faster, and more broadly than the truth in all categories of information.

So how to protect your employees and your company from misinformation? Simply stamping it all out, which is likely impossible, isn’t the answer. Instead, it’s important to first recognize how the mind processes information—and why misinformation is so appealing to the brain. Then there are concrete steps leaders can take to help employees sharpen their critical thinking skills and support them in situations where the likelihood of misinformation spread is highest.

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Why we latch onto misinformation

Misinformation has been around as long as humans have. It refers to any inaccurate information, whether disseminated purposefully to mislead or spread unintentionally by those who believe it to be true. Misinformation in the workplace can take many forms, such as fake reviews, business myths, incorrect tweets, rumors among employees, and applicants who lie on job applications or during interviews, says Jonas De keersmaecker, a postdoctoral researcher in the department of people management and organization at Esade Business School in Barcelona.

The risk of misinformation spread is particularly high during times of turmoil and transition, but any uncertainty can be a catalyst. Impending changes, from the mundane (say, a planned change to the food sold in the company cafeteria) to the tumultuous (for example, the acquisition of one’s company by a rival) can foment false narratives fueled by the human desire for certainty and easy answers that misinformation may provide.

So what’s a business leader to do? Misinformation isn’t going away. Social media behemoths such as Twitter and Facebook have tried to kill it and failed spectacularly. Leaders need to take a different tack. Rather than try to clear their networks of misinformation, they should focus on teaching employees how to recognize it and process it correctly so that it doesn’t cloud their ability to make good decisions.

Many people are not aware of their biases—or believe they are immune to them.
Jonas De keersmaecker, Postdoctoral Researcher, Department of People Management and Organization, Esade Business School

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Recognizing misinformation requires understanding how our irrational minds work. A whole field of psychology is dedicated to the subject of thinking about the way we think, called metacognition. If you want your employees to be better information consumers, you need to help them better understand how their minds make decisions.

We humans have a slew of built-in cognitive shortcuts that not only cloud decision-making overall but also weaken our ability to assess information. “It’s very difficult to overcome human biases because they often happen at an unconscious level,” says De keersmaecker. “Many people are also not aware of their biases—or believe they are immune to them.”

Examples of these hidden thinking traps include our natural inclination to make decisions based on the most immediate examples that come to mind (known as the availability heuristic), seeking out information that validates our own preconceptions (confirmation bias), trusting information we’ve heard before over new information (the illusory truth effect), and perhaps the most dangerous of all, the belief that we have no biases (the bias blind spot).

Researchers have found several techniques that can help employees rein in innate biases, overconfidence, and other mental shortcuts to become better critical thinkers and thoughtful consumers of information:

Misinformation will go on. But organizations that recognize it as a business risk—managing it as they would any other—can limit its effect on their organizations. Leaders who recognize the reasons people accept or spread misinformation; equip their employees to better assess information and root out the bad data; and provide their employees with timely and trustworthy information during times of uncertainty and change will be most effective in managing the threat.

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