Research by Demos and Orange Business found that permitting, and even encouraging, companies to use social networking technology can help businesses, not harm them, Reuters reports.

Online social networking contributes to productivity, innovation and "democratic working," according to author Peter Bradwell, who nonetheless cautioned that employers should provide guidelines for non-work use and inappropriate banter or imagery.

"Bans on Facebook or YouTube are in any case almost impossible to enforce; firms may as well try to put a time limit on the numbers of minutes allowed each day for gossiping," he stated.

Bradwell credited "smart" business with the ability to recognize that "social" networking can't really be separated from "professional" networking. "Allowing workers to have more freedom and flexibility might seem counterintuitive, but it appears to create business more capable of maintaining stability."

What's more, hindering the use of sites like Facebook — whose userbase includes over 100 million users worldwide — may even cause organizations harm, because such restrictions limit employees' value in an environment rich with potentially-useful contacts. Because lines are blurrier between personal and professional contacts, for example, users are more likely to develop a friendly, less intimidating rapport with powerful industry players.

The study profiled workers from six companies (including Orange). Each was asked how professionals in their field used social networking, and whether they thought it was useful. Not surprisingly, the verdict fell in soc-nets' favor, with subjects dubbing it a useful tool that shouldn't be restricted in modern organizations.
Review the report (pdf).