Social Networks Increase Potential of Reputational Risk for Organizations & Brands

Employees appear to have a clear understanding of the risks involved in using online social networks, as 74 percent of respondents believe they make it easier to damage a company's reputation.

 

"With the explosive growth of online social networks, such as Facebook and Twitter, rapidly blurring the lines between professional and private lives, these virtual communities have increased the potential of reputational risk for many organizations and their brands," said Sharon Allen, chairman of the board, Deloitte LLP. "While the decision to post videos, pictures, thoughts, experiences and observations is personal, a single act can create far reaching ethical consequences for individuals as well as employers. Therefore, it is important for executives to be mindful of the implications of this connected world and to elevate the discussion about the risks associated with it to the highest levels of leadership."

 

Just 17 percent of executives surveyed say they have programs in place to monitor and mitigate the possible reputational risks related to the use of social networks. Additionally, while less than a quarter have formal policies on the medium's use among their people, nearly half (49 percent) of employees indicate defined guidelines will not change their behavior online.

 

"One-third of employees surveyed never consider what their boss or customers might think before posting material online," Allen continued. "This fact alone reinforces how vulnerable brands are as a result of the increased use of social networks. As business leaders, it is critical that we continue to foster solid values-based cultures that encourage employees to behave ethically regardless of the venue."