subject: Is Your Venture Protected From Social Media Threat? [print this page] As the latest social media technologies introduce new possibilities for the business market as well as individuals, the challenges are a critical interest that must be addressed. Many businesses are ignoring these opportunities and risks at their own peril. Those who adopt a proactive approach can grow their client base, promote new business and strengthen their brand awareness. Those who do not can be at risk of negative advertising and possible litigation stemming from employee or consumer complaints. A memo dated May 30, 2012 released by the National Labor Review Board (NLRB) reveals the increasing exposure that corporations face concerning their social media standards. It is essential that businesses adequately assess their risk management policies and insurance coverage to include social media issues.
In regard to employees' social media activities, businesses need to find out what types of control are essential for their particular situation. Do assistants use social media as a part of their job? Are they allowed to use company resources even when posting on personal sites? In the NLRB memo mentioned earlier, many organizations were cited as using unlawful practices to control their employees' social networking activities. Many businesses were vague or too broad in the language used and the language could possibly be read as a suppression of their free speech rights. Walmart was commended for their social media protocol because they explained any ambiguous wording so as not to disregard any associate's First Amendment or state-constitutional free speech rights. Failure to authorize proper controls have the potential to lead to illegal employment practices, false advertising, discrimination against a legally protected status (e.g. race, gender) or abuse of federal and state laws. There could also be further liabilities to those businesses under the charge or surveillance of a regulatory body.
In regard to business records management (RM) strategies, Symantec among other security control organizations spotlight the significance of initiating an official retention plan to shield against risks. A Forbes.com article about social media risks included a statement from Gartner Group figuring that by the end of 2013 half of all corporate litigants "will be asked to produce material from social media websites for e-discovery". Omission of a secure RM policy could undermine the ability to show records mandated by the court as well as raise the chance of unintentionally releasing facts that would otherwise be kept from public exposure. Development of an understandable and executable guideline can protect against legal liability or an embarrassing public relations snafu.
The public desires the privilege to connect through social media so the business industry needs to respond, adapt or lose an chance to appreciate the great power that comes with the expanding social media technologies. One way some organizations are taking advantage of the opportunity is by developing "canned" text or pre-approved topics/statements that may be posted by employees. This approach can be an competent way to introduce a proactive social media policy and defend their business at the same time.
In essence, organizations need to acknowledge the risks and concentrate on social media policies in regard to crisis/risk management, intellectual property, client/employee privacy, and compliance with federal and state laws and industry regulatory restrictions. With the growing use of technologies, organizations should also communicate with their insurance agents to make sure they have suitable insurance coverage - some providers require special riders in order to grant coverage against social media exposure.
