Social media (SM) enables two-way communication and collaboration. Organisations can (and have) utilised it to great success building a competitive advantage, generating business and engaging with their customers on a more personal level.
For every SM marketing success, however, there are a dozen examples of organisations getting it wrong. A single public failure can have far greater ramifications than multiple successes. Boards and management teams must be aware of, understand, and manage the risks that online conversations may present to their business.
“Today’s customers expect that the organisation they do business with will be ‘on’ social media and will be contactable via the most prominent platforms such as Twitter, Facebook or LinkedIn.”
This two way communication increases opportunities to connect with customers and prospects but also increases risk, especially as corporate regulators and bodies (such as ASIC, ACCC and the ASX) are already announcing compliance requirements and guidelines with respect to social media use.
A fundamental question you must ask is whether your marketing department is aware of these guidelines – let alone the risks to reputation and your bottom line. Most SM activities will come from a marketing perspective, without necessarily including an eye to risk management.
Risks you need to watch out for
Ultimately, regardless of all of the procedures you put in place, there is one thing you need to do: be vigilant. Create a culture where everyone in your organisation understands how to protect your business brand and their own personal brand.