How boards can avoid a social media mishap.

• Author: Hamberg, Kayla
• Position: BOARD PRACTICES

For better or for worse, social media is here to stay. Social media outlets like Facebook, Twitter, and Google+ have become primary channels to communicate about products, culture, politics and everything in between. Even companies with minimal social presence must be aware of and wrestle with the complex issues that can arise in this vast and freewheeling environment. Unmanaged, even seemingly innocent social media activity can quickly morph into an embarrassing reputational issue or even a major threat.

Not surprisingly, social media has become an important area of risk management for directors, requiring thoughtful engagement with executive teams and knowledgeable outside experts. All directors should familiarize themselves with their company's social media presence and policies, regularly review corporate social media activity, and ensure thatthere is routine monitoring of their company's "digital reputation" as well as a robust social media response component to the company's crisis communications plan.

All directors should consider the following when evaluating and advising on a company's social media policies and practices:

* Managing Appropriate Social Media Use: Does the company have an official social media policy? Is it consistent with existing confidentiality policies? Has it been reviewed and signed by all employees, or just employees with social media responsibilities?

Effective social media policies make clear that social media is just another communication channel and the same rules that govern other communications apply in this context. Boards should ensure proper implementation measures are in place so that all parties, including outside consultants and other vendors, comply with the policy and have appropriate oversight.

* Business Use vs. Personal Use: How can a company be sure that employees are adhering to relevant policies and conducting themselves appropriately in their private interactions on social media?

In some cases, business and personal activity may be difficult to separate. While it is not possible to police individual social media accounts or impose blanket restrictions on employees' ability to freely express personal opinions on social media, employees must understand that they do so at their own risk. There are numerous examples of the unfortunate consequences of an errant personal "tweet" sent from a corporate Twitter account or a private message unwittingly being posted to a company's Facebook wall.

...