This document summarizes the risks of social media use for businesses and employees. It shows that most companies now use social media to engage customers but that unprofessional social media use can damage reputations and hurt hiring prospects. Specific examples are given of employees posting damaging statements online and losing their jobs. The document recommends developing social media policies, educating employees on appropriate use, and implementing risk management strategies to address legal issues like defamation, privacy concerns, and labor law violations that can arise from social media use.