A survey conducted by Deloitte demonstrates that the rise of social networking websites such as Facebook, Twitter, and MySpace has become an issue for boardrooms, with many unsure how to manage the reputational risks associated with the sites. Some 58 percent of the 500 executives surveyed agreed that the potential reputational risks should be made a board issue, with only 15 percent saying that their board was actively discussing the idea. “Activity in these online communities can have an extraordinary and far reaching impact,” said Deloitte Chairman Sharon Allen. Of those executives that identified social networking sites as an issue, 65 percent said the sites were being used to build the company’s brand. “Though social networks can be used to build business, they can also prove to be detrimental to brands,” said Allen. “Setting usage guidelines as well as establishing a values-based ethical culture are among the steps leadership can take to encourage employees to make good decisions online.”
Deloitte Survey: Newest Director Worry is Social Networking
While social networking is on the rise for many executives and directors, the associated reputational risks should be considered.
August 17, 2009
I’d bet another unspoken “worry” is the exposure to recruiters! I’m an active open net-worker and use these sites for research. With professional services firms like Deloitte, their greatest and main asset is their people. The social networking dynamic takes away some level of “control” that organizations used to have. This is a huge expose for loss of employees. Now, employees are more empowered with information they didn’t have before and exposure to more opportunities.
My favorite network of all is LinkedIn. It is a serious business network, unlike Facebook, Twitter and Myspace. Being an open net-worker, I accept all invitations to connect. So, feel free to send me one! John Redell
In fact,