Embracing the Opportunities,
Averting the Risks.
Russell Herder
© RUSSELL HERDER & ETHOS BUSINESS LAW

Russell Herder

Social media use is growing…quickly
U.S. Internet Users Who
Visit Social Networking Sites
Q2 2008 27%
Q2 2009 43%
Source: TNS and The Conference Board, June 2009

Perceived Value of Social Media
Enhance relationships with
81%
customers/clients
Build company brand 81%
Recruitment tool
l 69%
Customer service
64%
Enhance employee morale 46%
0% 20% 40% 60% 80% 100%
Multiple responses allowed
Source: Social Media Policy Survey, Russell Herder and Ethos Business Law, 2009

Social Media Vehicles Being Used
Facebook 80%
Twitter 66%
YouTube 55%
LinkedIn 49%
Blogs 43%
Wikipedia 24%
Flickr 16%
Yammer 11%
MySpace 8%
Delicious 7%
Digg 3%
Second Life 1%
Other 9%
0% 20% 40% 60% 80%
Multiple
M lti l responses allowed
ll d
Source: Social Media Policy Survey, Russell Herder and Ethos Business Law, 2009

Projected Use of Social Media
(Over Next Year)
Decrease,
2%
Maintain,
25%
Increase,
73%
Source: Social Media Policy Survey, Russell Herder and Ethos Business Law, 2009

Key Reasons Management
y g
Uses Social Media
1. To read what customers may
be saying
2. To monitor a competitor
3. To see what employees may
be sharing
Source: Social Media Policy Survey, Russell Herder and Ethos Business Law, 2009

81% believe social media poses a
corporate security risk
Source: Social Media Policy Survey, Russell Herder and Ethos Business Law, 2009

If You’re Not Using Social Media,
g ,
Why?
Don’t know enough about it 51%
Confidentiality/security issues 40%
Concerned about employee productivity
C d b t l d ti it 37%
No need for it 7%
0% 20% 40% 60%
Multiple responses allowed
Source: Social Media Policy Survey, Russell Herder and Ethos Business Law, 2009

4 in 10 block social media
access
Source: Social Media Policy Survey, Russell Herder and Ethos Business Law, 2009

Incidents are increasing
17% disciplined an employee for
violating blog or message board policies
15% have disciplined an employee for
violating multimedia sharing/posting
policies
13% of U.S. companies investigated an
exposure event involving mobile or Web-
based short message services (Twitter)

What were you thinking?
53% of employees say their
social networking pages are none
of their employers’ business
61% say that they won’t change
what they’re doing online
27% don’t consider the ethical
consequences of posting
comments, photos, or videos
online
Source: Deloitte LLP, Ethics & Workplace Survey, 2009

Legal Issues That Can Arise
from Social Media Use

Defamation
A false statement that injures someone's reputation
and exposes him to public contempt, hatred,
ridicule or condemnation

Anonymous Blogging –
Paris Regional Medical Center, TX

The FedEx fiasco

Employment claims
Harassment
Discrimination
Hostile work environment
And more…

Confidentiality and corporate security
Client or patient information
Other employees’ privacy
Intellectual property

And more…
Business disputes
Fraud
F d
Criminal liability

Companies Having a Employee Training Conducted
Written Social Media Policy on Social Media
Yes,
10%
Yes,
31%
No,
69%
No,
90%
Source: Social Media Policy Survey, Russell Herder and Ethos Business Law, 2009

Key Elements
in a Social Media Policy

Establish a position
Define the company’s philosophy
on social media
Mirror the culture

Mayo Clinic
“The main thing Mayo employees need to
remember about blogs and social
networking sites i that the same b i
ki i is h h basic
policies apply in these spaces as in other
areas of their lives ”
lives.

RightNow
“All of us at RightNow are working to rid the
All
world of bad experiences. Contributing to
online communities by blogging, wiki posting,
participating in forums, etc., is a good way to
extend our mission. We believe participation
in
i online discourse through th social web
li di th h the i l b
can empower us as global professionals,
innovators and citizens ”
citizens.

U.S. Coast Guard
“Becoming a more agile and change-centric
Becoming change centric
organization requires that we understand
and interact through social media... The
governmental and public affairs directorate
will coordinate our organizational
engagement in the social media environment
with interim policy, guidance, tools and
processes.
processes ”

Require transparency
Ask employees to be…
• Open
• Honest
• Respectful
Tell h
T ll them to diff
differentiate their personal id
i h i l identity from their b i
i f h i business
identity

Safeguard confidential
and propriety information
Especially since social media can be less formal, there is increased risk
for inadvertent disclosure
Reinforce your confidentiality policies and explain how to apply them to
the social media environment

Avoid conflicts of interest
Define how to identify potential
f h d f l
conflicts of interest, what types
are prohibited and who to talk
to when in doubt

When in doubt, spell it out
Employees should make it clear that their
views about work-related matters do not
represent the views of their employer or any
other person
Encourage a disclaimer when confusion could
exist, such as:
“The views expressed on this blog are mine
alone and do not represent the views of my
employer or any other person ”
person.

Make sure to address the basics
Non-discrimination
Harassment
Monitoring rights
Disciplinary guidelines
Di i li id li

One-size-fits-all?
Organizations – and social media policies – differ depending upon…
• Levels of desired social media participation
• Culture and degree of “acceptable” behavior
• Methods of conflict resolution
• Opinions on the overall value of social media

Be sure to…
Look inside first
Engage appropriate resources

Remember, social media is about…
New technology
New generation
New norms

Should you monitor employee
social media use?
Depends on company culture
Always reserve the right
Monitor if facts and circumstances warrant

How do you get
top management on board?
Stick: Lawsuit examples and potential litigation
Carrot: Brand awareness, marketing and customer awareness

Strategies for management engagement
Competitive review
Executive briefings
Adoption of policies to guide
employee behavior
Organization-wide employee
training

Are you liable “off the clock”?
No such thing anymore as “work hours”
Can be liable at any time, in any place

When something does happen…
First, look to policies and procedures
Second, consult appropriate professionals (e.g., HR, legal, account
management)
Use as a learning opportunity

How do you control “social not-working”?
Management!
Turn use into productive use
With growing number of
p ,
Millennials in the workplace,
remember that social media is
often a replacement for e-mail

How do you shape behavior?
Consider generational gap
Be open to opportunity
Training, training, training

An effective training plan should…
Be grounded in the company’s values and
ethics
Reach every employee in the company
Be an interactive educational opportunity
Be ongoing

Does the value of social media
outweigh the risks?
Opportunity to connect with
O t it t t ith
customers/patients/clients
Platform for customer service
Opportunity to engage employees
Excellent vehicle for crisis
communications

QUESTIONS?

www.russellherder.com/SocialMediaResearch
www russellherder com/SocialMediaResearch
Russell H d
R ll Herder
612.455.2360 612.767.3311