BulletProofBlog the blog on crisis communications

It seems like Amazon.com has been a household name for as long as there' s been an Internet. But over the weekend, the digital pioneer surprisingly missed a golden opportunity to engage the online conversation and nip a developing reputational crisis in the bud.

According to a statement released by Amazon on Monday, "an embarrassing and ham-fisted cataloging error" caused thousands of the books sold on its site to lose their spots in sales rankings and become more difficult to find in routine searches. Compounding the problem was the fact that most of the affected titles were gay and lesbian themed.

It' s no surprise that thousands of Twitter users almost immediately voiced their displeasure at what appeared to be an act of censorship. What is surprising, however, is that Amazon took no action to engage and shape the online conversation once it began - even when more than 18,000 people petitioned to boycott the company.

This most recent social media snafu once again echoes the need for companies of all shapes and sizes to strengthen their presence in the digital realm. If this can happen to a company as customer focused and Internet savvy as Amazon, imagine what it says for companies more intimidated by the new digital frontier. According to recent data released by the Harvard Business Review, while more than 82 percent of companies are taking significant steps to "manage reputation risk," only 34 percent reported that they regularly monitor social media and only 10 percent reported that they engage the online conversation. In the Information Age, these are mistakes companies can' t afford to make.

More and more, social media are shaping perceptions and driving traditional news coverage - as evidenced by the article detailing Amazon' s story in yesterday' s New York Times.

In the digital realm, it' s not always easy to identify what' s truth and what' s innuendo. That' s why it' s so critically important to monitor social media for any damaging misinformation and to be prepared to engage stakeholders in their chosen medium so that the record can be corrected as soon as possible.

It' s likely that Amazon won' t pay too steep a price this time around. But if the company is slow to respond to the online conversations too often, then it may soon find itself at a disadvantage in a world that grows more connected each and every day.