In my mind there is no doubt about it. The power of social media to engage and bring communities of people together to talk, share and collaborate is undeniable. So why are so many top corporate companies refusing to step out of the dark ages and embrace social media?
Social networking sites like Facebook, Twitter and Youtube have the potential, if used correctly, to enhance stakeholder engagement and increase collaboration among customers, employees, investors and others. Indeed, greater engagement among consumers leads to increased customer loyalty and a better bottom line. So with benefits like this, why are corporations choosing not to implement social media initiatives?
Of course, there are many risks associated with using social media in a corporate setting. The fear of hacking, disclosure of confidential information and viruses are just some of the risks involved. But the risks of using social media in the corporate world run deeper than this. When things turn ugly for a company that actively uses social media what are the reputational implications? Can companies continue to communicate openly and honestly with their stakeholders in times of crises?
Does social media always produce positive results? Or should corporate companies steer clear of social media for their own good?
I have created a short survey to accompany my dissertation which looks at social media in the corporate environment. I would really appreciate it if you took the time to fill this in. Here's the link: http://bit.ly/9T6r8h
Thanks for your help!
Thursday, 25 March 2010
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Hi Cat- this is such an interesting topic- but it is worth remembering that we are at the very start of a new phase of communication for corporates. There was an interesting survey done by Brunswick in September 2009 , that polled nearly 500 institutional investors and sell-side analysts in the US and Europe. 4% ranked new media –blogs, Facebook, twitter, message boards –as the top influencer when making investment decisions and recommendations. It becomes interesting for FTSE 100 companies when investors start to pay attention! The down side to it is that social media can bite, too- and damage control that hits shares prices is tough in an online world. Part of the problem is the limitations of current social media monitoring. And what cannot be controlled is generally feared by large corporates. An interesting conundrum.
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