By now, we all have at least one example of how social media can turn into a double-edged sword for organizations. Personal favorites include the SEC’s investigation (and ultimate non-action) regarding Netflix CEO Reed Hastings’s Facebook post for material information disclosure in violation of Regulation FD, the hacked accounts that led to Jeep’s tweet that Chrysler had been sold to Cadillac, and the Associated Press’s tweet report of a White House explosion that caused a $136 billion drop in the stock market. These scenarios provide powerful illustrations, but only scratch the surface of the sorts of consequences that follow social media. As much as these sort of events function to promote anxiety, they also serve as a realistic bar of what’s at stake when companies overlook social media risks.
Blue Hill in the News: Social Media Risk: Forget the Constraints and Open the Employee Conversation
Posted on October 28, 2014 by David Houlihan, Esq.