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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

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Embracing Opportunities, Averting Risks

  • 1. Embracing the Opportunities, Averting the Risks. Russell Herder © RUSSELL HERDER & ETHOS BUSINESS LAW
  • 3.
  • 4. 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
  • 5. 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
  • 6. 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
  • 7. 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
  • 8. 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
  • 9. 81% believe social media poses a corporate security risk Source: Social Media Policy Survey, Russell Herder and Ethos Business Law, 2009
  • 10. 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
  • 11. 4 in 10 block social media access Source: Social Media Policy Survey, Russell Herder and Ethos Business Law, 2009
  • 12. 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)
  • 13. 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
  • 14. Legal Issues That Can Arise from Social Media Use
  • 15. Defamation A false statement that injures someone's reputation and exposes him to public contempt, hatred, ridicule or condemnation
  • 16.
  • 17.
  • 18. Anonymous Blogging – Paris Regional Medical Center, TX
  • 20. Employment claims Harassment Discrimination Hostile work environment And more…
  • 21. Confidentiality and corporate security Client or patient information Other employees’ privacy Intellectual property
  • 22. And more… Business disputes Fraud F d Criminal liability
  • 23. 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
  • 24. Key Elements in a Social Media Policy
  • 25. Establish a position Define the company’s philosophy on social media Mirror the culture
  • 26. 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.
  • 27. 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.
  • 28. 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 ”
  • 29.
  • 30. 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
  • 31. 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
  • 32. 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
  • 33. 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.
  • 34. Make sure to address the basics Non-discrimination Harassment Monitoring rights Disciplinary guidelines Di i li id li
  • 35. 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
  • 36. Be sure to… Look inside first Engage appropriate resources
  • 37. Remember, social media is about… New technology New generation New norms
  • 38. Should you monitor employee social media use? Depends on company culture Always reserve the right Monitor if facts and circumstances warrant
  • 39. How do you get top management on board? Stick: Lawsuit examples and potential litigation Carrot: Brand awareness, marketing and customer awareness
  • 40. Strategies for management engagement Competitive review Executive briefings Adoption of policies to guide employee behavior Organization-wide employee training
  • 41. Are you liable “off the clock”? No such thing anymore as “work hours” Can be liable at any time, in any place
  • 42. 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
  • 43. 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
  • 44. How do you shape behavior? Consider generational gap Be open to opportunity Training, training, training
  • 45. 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
  • 46. 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