Domino's Pizza was recently thrown into a media storm after two employees filmed themselves doing not so nice things with a food order being prepared for delivery. They posted the video on YouTube (no longer available) and it spread like wildfire. No need to explain how something like that can leave deep wounds in the brand impression.
To their credit, Domino's acted quickly. Within a few days (and over one million YouTube views later) the video was removed, the company created a Twitter account to address the issue, and they recorded and posted a message from its chief executive on YouTube.
Since any online consumer has the ability to discuss brands in the public realm, reputation management will become an increasingly growing area of practice. In the social networking space, reputation management is the evolution of traditional PR. What's most important is that brands find their voice. The recent Amazon ordeal resulted in the brand being harshly criticized because of their 'silence'. They remained quiet for days, with no response to the millions of comments being made online from their consumers.
We can't expect brands to be infallible, but we should expect them to participate in the dialogue in social media spaces. Kudos to Domino's for facing an embarrassing situation head-on. It will be interesting to see how brands perfect the art of reputation management in an uncensored online universe.