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Grant Thornton: Social media risks and rewards

Social media risks and rewards

Social media risks and rewards
Source: Grant Thornton LLP and Financial Executives Research Foundation

While the exponential growth in social media has provided organizations with many new tools for communication and interaction, these tools have also created new types of risk. In this age of increasing transparency, customers, investors and regulators are expecting companies to be clear in their communications and timely and forthcoming with important information. Social media has taken what used to be word of mouth and allowed it to now be heard by millions and spread virally with a nearly instantaneous reaction. Customers, competitors, regulators and even employees are all contributing to a global stream of information about a company’s products, services, brand or industry.

Key interview findings include the following:

  • Governance for social media compliance remains fragmented.
  • More companies have or are developing policies that address social media governance and risks, but they are not conducting risk assessments.
  • The extent to which companies train their employees on social media policy varied considerably.
  • The importance of the results of the National Labor Relations Board investigations into dozens of social media cases could not be overstated. An example of a social media policy can be found in the study.
  • While social media use by companies has grown, their use of key performance indicators (KPIs) to evaluate the positive/negative impact of their social media activity has lagged.”


Posted on: December 27, 2013, 6:15 am Category: Uncategorized

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