In Revenue Capital
September 11, 2023

Hard Lessons from 5 Major Trust and Safety Crises in Tech

Author: Sainna Christian

Trust and safety have emerged as defining challenges of our technological age. As more aspects of society move online, from communication to commerce to entertainment, tech companies face heightened scrutiny around balancing user protection with business interests. Several high-profile controversies have revealed how quickly public faith can erode when people feel unsafe or exploited online. These cases underscored deep issues around ethics, accountability, and whether growth was prioritized over human well-being.

By diving deeper into illuminating case studies, important lessons can be identified for how tech companies might better anticipate, manage, and recover from trust and safety crises. This article will analyze five examples that became turning points in understanding the difficulties of online trust and safety.

Case Study #1: Uber’s Toxic Culture Crisis

In early 2017, former Uber engineer Susan Fowler published an explosive public blog post alleging systemic sexism, sexual harassment, and an unaccountable management culture at the ridesharing company. Her account sparked an internal investigation that uncovered startling dysfunction within Uber’s workplace. This included harassment and discrimination claims, threats to journalists, “bro culture” excesses like company trips to escort karaoke bars, and more.

Ultimately, over 20 employees, including CEO and co-founder Travis Kalanick, were fired over ethical failures. But immense damage was already inflicted on Uber’s brand and trust.

Fallout

Uber faced intense public criticism for enabling toxicity and harassment despite positioning itself as an ethical innovator. Trust in its leadership took a significant hit, raising questions about Uber’s lack of inclusion, accountability, and willingness to ignore glaring cultural problems.

Many customers deleted their Uber accounts in protest. Competitors like Lyft capitalized on the crisis to recruit defecting drivers and riders. Morale plunged as employees lost faith in executives internally. Uber’s reputation as a progressive company was left in tatters.

Takeaways
  • Implement more robust HR practices, mandatory training, and conduct standards.
  • Create safe mechanisms for employee feedback and whistleblowing.
  • Leaders must be proactive about cultural health rather than reactive.
  • Align incentives to ethics and diversity, not growth alone.
  • Clear ethical behavioral policies enable accountability.

Case Study #2: YouTube’s Creator Burnout Epidemic

Over the last several years, YouTube creators have expressed growing unhappiness with the platform’s opaque policies, lack of communication, and pressure to compete in its algorithmic recommendation systems. Many feel YouTube has prioritized its growth over creator well-being. Channels have been lost to burnout and mental health struggles as creators deal with confused Community Guidelines enforcement.

All this comes as YouTube relies on creators to produce the videos that fuel its business. But creators say they feel exploited by systems optimized for watch time over humanity.

Fallout

YouTube has faced mounting criticism for undervaluing creators as the human capital behind its profits. Many believe YouTube now favors large corporate channels over individuals.

These strained creator relationships have sparked concerns about poor transparency, inequality in policy enforcement, and inadequate economic and emotional support for creators.

Takeaways
  • Radically improve transparency and communication with creators.
  • Provide substantially more human oversight and assistance in resolving issues.
  • Focus equally on creator well-being as well as growth metrics.
  • Policies should consider individual contexts and circumstances.
  • YouTube leadership must show genuine commitment to enabling creator success.
...public faith can erode when people feel unsafe or exploited online

Case Study #3: Boeing’s Engineering Ethics Crisis

Boeing faced a massive scandal over the engineering failures of its 737 Max airliner. Due to these design flaws, two accidents occurred, resulting in the loss of 346 lives. Whistleblowers revealed how Boeing leadership pushed to rush and under-test planes to compete with Airbus. Critical safety systems were omitted to cut costs. Engineers who voiced concerns faced retaliation.

The breakdown showed profits and speed prioritized over passenger safety and sound design practices. The consequences were catastrophic, undermining public trust in Boeing.

Fallout

Boeing confronted lawsuits, Congressional and DOJ investigations, canceled orders, and lost billions. Its reputation plunged as internal culture problems were exposed.

For decades, Boeing was seen as a paragon of engineering prowess. However, the crises illuminated how even safety-critical systems had deeply compromised ethics under competitive pressure. Boeing’s hard-won trust was shattered.

Takeaways
  • Safety and quality assurance are non-negotiables, even under deadlines.
  • Transparency and accountability are necessary for engineering decisions.
  • Implement structures protecting whistleblowers who elevate concerns.
  • Conduct regular ethics training centered on safety impact.
  • Leadership should not be willing to prioritize lives over profits.

Case Study #4: Juul’s Teen Epidemic

E-cig startup Juul saw explosive growth, particularly among teens, with its kid-friendly flavors and sleek USB-like design. But it soon faced allegations it had irresponsibly marketed to youth and created a new pipeline for nicotine addiction. Whistleblowers exposed how Juul knowingly targeted schools and recruited influencers to push use among vulnerable, often underage groups. This violated public health ethics and stoked an epidemic of teen nicotine consumption.

Fallout

Juul confronted FDA lawsuits, restrictions on flavors/marketing, and a public health backlash for fueling youth addiction. Its reputation shifted from a trendy startup to an unethical profiteer.

A $438 million settlement with states was reached, and the CDC called teen vaping an “epidemic.” But the damage was already done for a generation by exploiting trust and safety gaps.

Takeaways
  • Prioritize ethics over growth in vulnerable youth markets.
  • Marketing should honestly convey the risks of addiction.
  • Aggressively safeguard against underage access.
  • Greater transparency with health regulators and the public.
  • Value consumer welfare over profits or market share.

Case Study #5: Parler’s Content Moderation Crisis

In 2021, Apple, Google, and Amazon AWS banned the social media app Parler for breaching their content moderation policies around violence and hate speech. Parler had positioned itself as an “unbiased” free speech alternative to Twitter and Facebook. But following the Jan 6th Capitol riot, Parler was found hosting calls for violence, violating provider policies.

Despite claims of political censorship, Parler’s unwillingness to properly moderate their platform per prudent ethical standards resulted in their access being revoked.

Fallout

Parler confronted the difficult lesson that free speech absolutism has consequences. Their actions exposed Parler’s profound failures around ethical content governance that compromised public safety.

Claims of bias could not compensate for Parler’s rejection of reasonable moderation against violence and extremism. Their growth was stopped cold by neglecting trust and safety.

Takeaways
  • Policies must address harmful speech like threats and hate.
  • Claims of censorship don’t outweigh ethical obligations.
  • Conversations are needed for transparency around how speech rules balance safety.
  • Willingness to enforce standards even on majority voices.
  • Free speech has limits when public safety is jeopardized.

Conclusion

As these crises demonstrate, even the most successful companies are not immune from betraying user trust in consequential ways. However, by closely examining past failures, proactive steps can be taken to strengthen safeguards for the future.

The solutions must start with tech leaders viewing trust and safety as a lived, daily reality – not just a PR slogan. A genuine commitment to transparency, giving users control, and embedding ethical practices can help earn public trust that acts as a reservoir when inevitability issues occur.

Perfectly preventing every crisis is impossible. However, placing people before profits provides the moral foundation where technology can achieve great things while advancing human dignity. The future remains bright if innovators stay grounded in empathy, ethics, and social responsibility as their True North.

If you lead a technology platform or online community, safeguarding trust and safety should be a top priority. Schedule a demo today with Hugo to learn how we can partner to protect your brand reputation and build an ethical, trustworthy environment for your users. Don’t wait for a crisis to act – let’s have a productive conversation on how to get ahead of these issues. Your users deserve an optimal experience free without disruptions, and we’re here to help achieve that goal.

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