Wednesday, August 19, 2009

Reputational Risk of Social Networks is a Burgeoning Boardroom Topic

According to additional findings from the third annual Deloitte LLP Ethics & Workplace survey, 58 percent of executives agree that the reputational risk of social networking should be a boardroom issue. However, only 15 percent of the respondents say that it is being discussed at this level.

The majority (65 percent) of those executives who agree that the reputational risks of social networking should be a boardroom issue also say that they use social networking to build their company’s brand. Only 27 percent of executives say that they regularly discuss how to leverage these sites while at the same time mitigating the risks involved.

According to Deloitte, 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.

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