This blurb will review the increasing popularity of social media sites like Facebook and Twitter, and companies' need to insure they have sufficient insurance coverage to address these specific risk exposures.
As the latest social media technologies present new opportunities for the business market as well as individuals, the challenges are a critical interest that must be addressed. Many organizations are overlooking these opportunities and risks at their own jeopardy. Those who assume a proactive attitude can enlarge their client base, develop new business and increase their brand recognition. Those who do not can be subject to negative advertising and possible legal claims stemming from employee or consumer allegations. A memo dated May 30, 2012 published by the National Labor Review Board (NLRB) reveals the increasing danger that businesses run into concerning their social media standards. It is paramount that businesses adequately inspect their risk management policies and insurance protection to include social media vulnerability.
In regard to employees' social media use, businesses need to ascertain what types of control are right for their specific situation. Do assistants use social media as a part of their job? Are they allowed to use company resources even when posting on personal sites? In the NLRB memo mentioned earlier, many businesses were cited as using unlawful practices to control their employees' social networking activities. Many businesses were vague or too broad in the language used and the language could possibly be taken as a censorship of their free speech rights. Walmart was supported for their social media practice because they made clear any ambiguous language so as not to ignore any associate's First Amendment or state-constitutional free speech rights. Failure to enact appropriate controls have the potential to lead to illegal employment practices, misleading advertising, discrimination against a legally protected status (e.g. race, gender) or breaking of federal and state laws. There could also be other dangers to those businesses under the purview or supervision of a regulatory body.
In regard to business records management (RM) strategies, Symantec among other security control organizations accentuate the importance of building a proper retention plan to safeguard against risks. A Forbes.com article about social media risks included a declaration from Gartner Group estimating that by the end of 2013 half of all corporate litigants "will be asked to produce material from social media websites for e-discovery". Lack of a dependable RM policy could undermine the ability to produce records mandated by the court as well as increase the possibility of unintentionally releasing facts that would otherwise be kept from public exposure. Development of a clear-cut and executable program can protect against legal liability or an embarrassing public relations snafu.
The community likes the right to connect through social media so the business industry needs to respond, adapt or lose an opportunity to realize the great possibilities that come with the multiplying social media technologies. One way some organizations are taking advantage of the chance is by developing "canned" text or pre-approved topics/statements that may be posted by employees. This approach can be an smart way to launch a proactive social media policy and safeguard their interests at the same time.
In essence, businesses need to acknowledge the risks and concentrate on social media policies in regard to crisis/risk management, intellectual property, client/employee privacy, and compliance with federal and state laws and industry regulatory restrictions. With the increasing use of technologies, businesses should also speak to their insurance agents to ensure they have proper insurance coverage - some providers require special riders in order to administer coverage against social media exposure.
Looking for ACORD forms? Forms Boss offers simple to use easy to learn systems for easier management of your ACCORD forms, click here for additional details.
As the latest social media technologies present new opportunities for the business market as well as individuals, the challenges are a critical interest that must be addressed. Many organizations are overlooking these opportunities and risks at their own jeopardy. Those who assume a proactive attitude can enlarge their client base, develop new business and increase their brand recognition. Those who do not can be subject to negative advertising and possible legal claims stemming from employee or consumer allegations. A memo dated May 30, 2012 published by the National Labor Review Board (NLRB) reveals the increasing danger that businesses run into concerning their social media standards. It is paramount that businesses adequately inspect their risk management policies and insurance protection to include social media vulnerability.
In regard to employees' social media use, businesses need to ascertain what types of control are right for their specific situation. Do assistants use social media as a part of their job? Are they allowed to use company resources even when posting on personal sites? In the NLRB memo mentioned earlier, many businesses were cited as using unlawful practices to control their employees' social networking activities. Many businesses were vague or too broad in the language used and the language could possibly be taken as a censorship of their free speech rights. Walmart was supported for their social media practice because they made clear any ambiguous language so as not to ignore any associate's First Amendment or state-constitutional free speech rights. Failure to enact appropriate controls have the potential to lead to illegal employment practices, misleading advertising, discrimination against a legally protected status (e.g. race, gender) or breaking of federal and state laws. There could also be other dangers to those businesses under the purview or supervision of a regulatory body.
In regard to business records management (RM) strategies, Symantec among other security control organizations accentuate the importance of building a proper retention plan to safeguard against risks. A Forbes.com article about social media risks included a declaration from Gartner Group estimating that by the end of 2013 half of all corporate litigants "will be asked to produce material from social media websites for e-discovery". Lack of a dependable RM policy could undermine the ability to produce records mandated by the court as well as increase the possibility of unintentionally releasing facts that would otherwise be kept from public exposure. Development of a clear-cut and executable program can protect against legal liability or an embarrassing public relations snafu.
The community likes the right to connect through social media so the business industry needs to respond, adapt or lose an opportunity to realize the great possibilities that come with the multiplying social media technologies. One way some organizations are taking advantage of the chance is by developing "canned" text or pre-approved topics/statements that may be posted by employees. This approach can be an smart way to launch a proactive social media policy and safeguard their interests at the same time.
In essence, businesses need to acknowledge the risks and concentrate on social media policies in regard to crisis/risk management, intellectual property, client/employee privacy, and compliance with federal and state laws and industry regulatory restrictions. With the increasing use of technologies, businesses should also speak to their insurance agents to ensure they have proper insurance coverage - some providers require special riders in order to administer coverage against social media exposure.
Looking for ACORD forms? Forms Boss offers simple to use easy to learn systems for easier management of your ACCORD forms, click here for additional details.
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