Corporate espionage and exposure to personal and corporate liability are a few of the risks of using social networks - risks that apply to both companies and individuals even when these networks are used for relatively benign activities such as marketing and corporate promotion.
Despite these dangers, few companies have put in place formal policies regarding online social network use, according to a new report [pdf] by Manpower.
Connecting the Dots
Social networks have become a goldmine of information for companies skilled in the art of connecting the dots - a little-noticed development that is beginning to concern companies. In many cases mining such information is completely legally. For example, one can examine public statements by company staffers - especially if they are inconsistent - that can point to new initiatives under way.
Bob Fox, head of a competitive intelligence program for Canadian entrepreneurs advises firms to monitor competitors' comments in the media, on industry blogs, at conferences and, yes, on social networks like Twitter and Facebook. (via the Globe and Mail).
Defamation Suits
Defamation suits - especially against bloggers - are not unusual, said David Burgert, partner with Porter & Hedges, (via TechNewsWorld). He said that his firm has handled several such cases, particularly against investment blogs that have discussed publicly traded companies. Several years ago, someone posted a number of false, defamatory statements about the CFO of his company's client on the Yahoo chat board for investors, he recalled. The poster falsely asserted that the CFO had formerly been indicted for bank fraud.
"This set off a firestorm of discussion on the board," said Burgert, "and the stock price dropped for a few days, and the client received a number of press inquiries. We filed a 'John Doe' suit against the poster here in Houston, and subpoenaed Yahoo to give us records showing the true identity of the poster - who had used a false name for his postings."
The firm got the name and served the poster. He defaulted, and Burgert's client got a US$1 million judgment against him.
Employers Lack SocNet Policies
Considering how easy it can be to expose oneself or one's company to risk, the figures from the Manpower report are astounding. In its study, “Social Networks vs. Management? Harness the Power of Social Media,” it found that 75% of employers worldwide do not have a formal policy regarding the use of social networking sites at work, writes MarketingCharts. Only 20% of employers do have a formal policy, and only 63% of those say their policy is effective at avoiding productivity loss.
