Just ten days after the furor erupted over Sony’s rootkit-enabled CD’s (see previous posts), Sony pulled the offending technology in a statement that acknowledged that that rootkit has been used by hackers to install viruses.
The move follows a global storm of negative attention including boycotts and law suits. Even the Department of Homeland Security cast a disapproving eye on the tech giant.
Just ten days. This was a massive expression of the power of market feedback. In the past, a company as powerful as Sony may have gotten away with such a tactic (rootkit installs and works in the background without the user’s knowledge or permission). Just ten days of fury since the news became public, but it will take Sony months — maybe years — to recover from this breach of trust with its customers. They may not recover at all…
When will business leaders understand they won’t be able to get away with such actions anymore? Not later than Monday, I expect. No one can survive in this age of disintermediation without stepping outside of the frame of their own self interest to think about — to concentrate on — the interests of their customers.
So where do you go from here if you are Sony (or any other business)?
The choice would be one of two paths, the biblical tradition calls them darkness or light. The path of darkness moves a company to redouble efforts to be more effective at hiding its actions from customers, being more secretive in its intentions. The dark path is dominated by arrogant self interest, a desire to control, a willingness to deceive (even destroy), and an inability to admit wrong.
The path of light takes a company in the direction of more customer-centric service, disclosure, collaboration, and a humility that would admit mistakes and wrongs.
One path destroys relationships. The other creates community. I think business leaders must be increasingly attentive to which path their choices put them on. And I don’t think it matters how big they are.
So which direction do you think Sony will choose?
