Social Networks Add Value & Risk

CU360
April 21, 2010 | COMMENTS

With the explosive growth of sites such as Twitter, Facebook, and YouTube, companies are putting up their guards when it comes to employees' use of social networks. And many employees agree with them—at least in theory.

Almost three-quarters (74%) of employees believe social networks can pose great risk because they're an easy way to damage a brand's reputation, according to a recent Deloitte report, Social Networking and Reputational Risk in the Workplace.

But 37% of employees don't consider what their bosses would think before posting comments, photos, or videos online. Only 17% of executives say their companies have programs in place to monitor employees' use of social networks.

“While policies and guidelines are an important component of managing reputational risk, organizations must also create a culture of accountability that encourages employees to make responsible ethical decisions both online and offline,” says Sharon Allen, chairman of the board at Deloitte.

To do that, employers and employees first need to bridge a wide gap.

More than half (60%) of business executives say they have the right to know how employees choose to express themselves and their organizations online. But 53% of employees say social network profiles and pages are not an employer's concern.

In fact, 49% of employees say defined guidelines from their companies would not result in any change in behavior. Another 61% say even if employers monitor their profiles, it wouldn't affect their online behavior.

“Since we don't know if employees and employers will ever truly see eye-to-eye on the use of personal social networks, companies should offer some guidance on how to better manage them,” Allen says. “For instance, employers can encourage employees to set privacy protocols to protect the content on their pages or to give strong consideration before accepting a ‘friend' or ‘follower' request.”

Many employers have only recently become familiar with the extent to which social networks can hurt a brand. Domino's Pizza is a prime example of how a YouTube video prank led to a public relations crisis for the company. Footage was posted online of a Domino's employee contaminating food prepared for delivery and violating health code standards. In the 24 hours it took Dominos to respond, 250,000 saw the video.

About 58% of business leaders agree that the risks associated with social networks should be a boardroom issue, but only 15% say it's being discussed there. Allen adds that companies shouldn't forget the potential benefits of social networks either.

“Quite a few organizations have embraced social media and are leveraging it to reach new and existing customers, identify and recruit talent, and build overall brand awareness,” she notes. As the business value of social networks is demonstrated, Allen believes more companies will build it into their communications strategies.

For more on this topic, see Social Media Guidelines & Policies, a white paper from the CUNA Marekting & BD Council & CUNA HR/TD Council.

This article was orginally published online by CU360, an online portal for benchmarking tools, market insights, industry data, and analytical information at cu360.cuna.org. Reprinted with permission.