Social media risk: Closing the management gap to safeguard reputation and productivity

Abstract

As consumers increasingly look to social media networking sites to source information, communicate, purchase products and services, and obtain post-sales support, the pressure is on for organisations to consider new ways of working and IT infrastructures to keep pace with this growing phenomenon. A top priority for many organisations is to get their own house in order. The management of social media channels needs to extend beyond the traditional boundaries of marketing as all departments, including IT, human resources and legal, are being called upon to set organisational policy around the delivery and management of social communication channels. A further catalyst for change is the release of a number of policy guidelines by industry regulators such as the Financial Conduct Authority which will hold organisations accountable for decisions around content distribution, management processes, data handling and the security of social media accounts. This paper focuses on the management issues, challenges and risks associated with today’s brave new world of social engagement, and highlights the positive outcomes of developing, then executing a proactive and successful corporate social media strategy. The rewards are great as increased cross-functional collaboration will safeguard employee and operational productivity, as well as corporate reputation, and ultimately boost profits; however, the risks and areas of weakness need to be understood.