Best Practices: Mitigating the Business Risks of Social Media
4 Pages Posted: 26 Mar 2014 Last revised: 18 Aug 2015
Date Written: September 26, 2013
Social media is rapidly emerging as an effective means for businesses to engage their customers. Through the use of social media, customers can be made to feel and behave like part of a company’s brand and culture. The benefits of this viral marketing may directly impact a company’s bottom line. However, there are potential pitfalls that may arise out of the use of corporate social media. A prudent company should understand them.
This article takes a cautionary look at the downside risks posed by the challenges of social media, and recommends best practices by which companies can mitigate them.
Keywords: social media, privacy, branding, trade secrets
JEL Classification: K20, K22, K29, K30, K31, K40, K49, L20, L21, M3, M31, M37, M39
Suggested Citation: Suggested Citation