Corporate social media: a high-level risk assessment

Companies in all industries are increasingly using social media to communicate and connect with consumers, employees, recruits, business partners, investors and other constituents. A recent study by McKinsey & Co found that 39 per cent of companies use social media as their primary digital tool to reach consumers, and that number is expected to increase to 47 per cent within the next four years. The Center for Marketing Research at the University of Massachusetts reported that, in 2012, 73 per cent of the Fortune 500 companies used Twitter (up from 62 per cent in 2011), 66 per cent had a corporate Facebook page (up from 58 per cent) and 28 per cent had a public-facing blog (up from 23 per cent). If corporate entities’ use of social media for marketing and other purposes is not already ubiquitous, it will certainly become so in the coming years.

Despite the number of legal and other issues implicated by corporate and employee use of social media, businesses are exploring the potential of social media for a number of reasons…

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