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Governing Social Media: How to Monitor, Manage and Make the Most of Employee Use of Social Media

Interact 2010The Legal and Compliance Technology Forum

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Our Panelists

Doug Cornelius

Chief Compliance Officer

Kathleen Edmond

Chief Ethics Officer

Janice Innis-Thompson

SVP & Chief Compliance Officer

Scott Giordano

Director of Product Marketing

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Social Media Usage - Individuals

Facebook statistics: 400M active users worldwide 35% of the U.S. are members 100M log in via mobile devices 3M active pages Average users have 130 friends and spend 55

minutes per day

Twitter: 75M accounts; 10-15M active Growth peaked at about 7.8M per month

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How Much Damage Can You Do With 140 Characters?

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Poll

How many have a Social Media policy?

How many are planning on implementing one in the next year?

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Social Media Usage – Companies

Facebook: >1.5M local companies have an active fan page

Social media adoption by small businesses doubled from 12% in 2008 to 24% in 2009.

• Source: MarketingVox.com

LinkedIn: 45M users in 150 industries• Source: TechCrunch

By 2011, enterprise microblogging will be a standard feature of 80 percent of social software platforms on the market.

• Source: Gartner

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Managing Compliance: Necessity

Does your organization need a Social Media policy?

Consider: Social Media is still media Communication via Social Media needs to be

consistent with internal policies Need to apply compliance principles Industry examples: healthcare, pharmaceuticals,

banking FTC blogging rules

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Managing Compliance: Foundations

How and where do you start the process of managing Social Media?

Factors: Goals of the policy To whom does it apply? Implementation challenges

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Working Together

How do you get various stakeholders (such as Legal, HR, IT, Marketing and Compliance) to participate in crafting a social media policy?

Some approaches: Discuss potential dangers from having no policy

(Google “social media gaffes” for examples) Identify compliance requirements that are particularly

susceptible to social media (privacy, discrimination, tax-exempt status)

Identify potential advantages of the policy

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Benefits vs. Drawbacks

What benefits has your company received from Social Media?

Benefits: Low cost per thousand Recommendations by customers tend to be the most

effective

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Benefits vs. Drawbacks

What have been the drawbacks?

Drawbacks: Easy to say the wrong thing Need to localize, especially for international use Need to save for use in litigation down the road

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Balancing Evangelism and Compliance

How do you balance employees’ evangelism of your company with the need to stay in compliance ?

Examples: Department of Defense – security vs. getting the

message out What happens when an employee’s SM activity

becomes associated with their off-hours “persona”? Blowback from employee’s activities—how do you

protect the company and your brands?

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Instituting Controls Over Social Media

How do you institute controls over Social Media? Policy: the driver Procedures: the checklist Guidelines: inform the process Training: educate the staff

What role does technology play? So-called “data loss prevention” or DLP Brand protection

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Sector-Specific Regulations

How does Social Media affect compliance regulations in your sector?

Examples: REITs Retail Financial Services

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SOX, HR, and Other Regimes

How do you address non-sector specific compliance, such at SOX, HR and other regimes? SOX: implied IT security controls; “whistleblower”

protection HR: need to prevent discrimination; hostile work

environments Privacy/Intellectual Property: very easy for data to

“leak” out Litigation/FRCP: preserving Social Media data for

future litigation

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Some Final Thoughts

By 2011, enterprise microblogging will be a standard feature of 80 percent of social software platforms on the market.

• Source: Gartner

Social Media CAGR, 2009-2014: 34%• Source: Forrester

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Some Final Thoughts

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Sample Policies

Sample policies:

http://www.compliancebuilding.com/about/publications/social-media-policies/

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Questions and Answers