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The Board, Social Media and Regulation FD

As public companies increasingly use and rely upon the new avenues of communication provided by social media, it is correspondingly important for directors to be aware of the manner and extent of their companies’ use of social media and have a basic understanding of the risks and benefits of corporate participation.


Via Dionne Lew
Karl Wabst's insight:

The SEC ruling on Regulation FD addressing use of social media for shareholder communication raises the stakes for Boards and Executives.  

 

Why?

 

Many senior leaders have not paid attention to corporate-level social media until the SEC ruling. Social media was often regarded as a method of non-business or casual communication by corporate management. Suddenly, any statements are likely to be scrutinized by the press, shareholders and potential investors alike.

 

In addition, the ruling greatly increases the likelihood that implementations and controls will be audited. Examination will reveal a lack of policies and processes. The typical corporate legal overreaction may impede the spontaneity of existing programs.  

 

While some use social media in their personal lives, formal acceptance of new media channels means that leadership must become more proficient in their use for business communications. This will present a personal challenge to many executives.

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Business Transformation
Corporate and Business Strategy and Execution in the Post Industrial, Digital Economy. Want to know more? Visit me on LinkedIn: www.linkedin.com/in/karlwabst/
Curated by Karl Wabst