Executives Say Reputational Risk of Social Networking Should be a Boardroom Issue

Executives Say Reputational Risk of Social Networking Should be a Boardroom Issue


Executives Say Reputational Risk of Social Networking Should be a Boardroom Issue
Aug. 24, 2009 —

More than half of executives agree that the reputational risk of social networking should be a boardroom issue, though only 15% said it is actually being discussed at this level, according to findings from the third annual Deloitte Ethics & Workplace survey.

“Online social networking presents a range of challenges and opportunities for most organizations,” said Sharon Allen, chairman of Deloitte LLP. “Activity in these online communities can have an extraordinary and far reaching impact. That’s why it is important that the potential reputational risks associated with sites like Facebook, Twitter and YouTube become an agenda item in today’s boardrooms.”

The survey found that 65% of those executives who agree that the reputational risks of social networking should be a boardroom issue also said that they use social networking to build their company’s brand; yet only 27% of executives said that they regularly discuss how to leverage these sites while mitigating the risks involved.

“Though social networks can be used to build business, they can also prove to be detrimental to brands. 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,” Allen said.

Survey MethodologyOpinion Research conducted a telephone survey on behalf of Deloitte LLP among a national probability sample of 2,008 employed adults comprising 1,000 men and 1,008 women 18 years of age and older, living in private households in the continental United States. Interviewing for the survey was completed during April 9–13 and April 16–19, 2009. Sampling error is +/- 2.5%.

Opinion Research also conducted an online survey of 500 business executives. The sample for the study came from a panel of executives across the United States, including company owners, directors, CEOs, controllers, executive vice presidents, chief information officers, vice presidents and board members. Invitations to participate in the study were sent beginning on April 10, 2009 and data collection continued through April 17, 2009.

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http://dreamlearndobecome.blogspot.com This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.