The social media landscape must be embraced and managed by business. Social media technology is pervasive and risky and while this new frontier in marketing and customer connection is constantly growing and changing, understanding the risks associated with social media and how to prepare for them can be the difference between creating a successful program and damaging your brand.

Employee Related Risks

Companies must train employees about appropriate communication practices and behavior expectations around the use of social media. Comprehensive policies and standards define these acceptable communication practices and help guide employees to make informed decisions. Below are several key examples:

• Employees should not post confidential company information. Once a person posts information online it can never be undone. Also, employees should be isolated social media websites when working with confidential company information. The accidental exposure of confidential information could give a competitor an advantage over the organization or breach a service contract. Tri-Medical Healthcare Centre fired five employees after they violated HIPAA regulation by discussing patient information on Facebook.
• Employees must be aware of all relevant regulations related to their industry and job function. The Federal Trade Commission (FTC) protects consumers from deceptive practices, which is why an employee must identify that they are employed by their company when discussing their employer via social media. Employers are responsible for their employees’ actions and must therefore implement controls to monitor and protect themselves from employee behavior.
• Employees must qualify any statements they make via social media as their own and not that of their employer. Employees should reflect on the impact of their statements. Inappropriate remarks can damage an organization’s reputation and lead to termination of the employee.
• Employees must not use social media to harass or bully a fellow employee. Companies do not tolerate bullying and bullying exposes the organization to lawsuits related to hostile work environments. Many companies are now extending their code of conduct to their employees’ actions online.

Organizational Management of Risks

Social media related risks exist, whether or not an organization chooses to engage in online marketing. The risk is greater if an organization is not tracking its brand’s presence within social media. Consumers love to share their opinion about a person or company. If the company is not tracking the mention of its brand and employees then it cannot respond to the positive or negative comments about the company on the internet.

An organization must understand that online communication can reach people around the entire world and one mistake can damage a brand and have a financial impact. This could happen through an accidental click of a mouse or through a disgruntled employee. The head of a company could be recorded saying something inappropriate and the video could be uploaded and sent to hundreds of people in minutes. Brands can be damaged through rumors of inappropriate actions. Public figures’ (such as politicians and celebrities) reputations are damaged when rumors surface affecting their image and so are the reputations of the companies with which they are affiliated.

Companies proactively managing social media should also be prepared for the potential of social media related incidents. Organizations must incorporate monitoring of communications into the organizations’ overall incident monitoring program. Organizations must establish a defined response plan for the business involving the teaming of HR, Legal, Communications, and Information Security departments that also includes a process for treating social media related incidents.

Organizations that engage in social media and effectively manage risks benefit from expanding the brand’s presence and protecting their reputation.