Social Media’s Impact on Organizations and their Ethics and Compliance Programs

Tim C. Mazur

So what steps should an ethics and compliance officer take with regard to the ultimate adoption of social media within an organization?
Should ethics and compliance officers, responsible for, among many things, fostering an organization’s positive ethical values and standards, encourage the adoption of social media tools in the workplace?

Critics note that, since outlets like Facebook and Twitter are relatively new vehicles of communication, more time is needed to evaluate their strategic usefulness and to weigh this information against potential liability and other harms. These critics are alarmed by the facts that social media contribute to, at best, time-wasting personal endeavors (e.g., gaming and gossiping), and, at worst, potentially illegal acts including gambling. In some cases, social media have been the source for security and privacy breaches. Vietnam, according to the Associated Press, has gone so far as to employ censors to block civilian access to Facebook and other social media websites (even though Facebook inventor Mark Zuckerberg recently vacationed there). And, according to the New York Times, since there has been a rise in numbers of lawsuits resulting from students and teachers using social media to engage in “boundary crossing,” or inappropriate relationships, many school systems in the United States prohibit the use of social media among teachers, students, and administrators.

Those in favor of social media argue that more good than harm comes from using it and insist that it remains a positive force for enabling businesses and other organizations to connect to multiple global communities. When used effectively, these proponents say, social media promotes collegial networking opportunities and motivates clients and customers, all while broadcasting an organization’s mission.


Social media: here to stay

The fact remains that social media is poised to continue its meteoric rise in popularity. Just as the internet itself has risen in popularity in the years since it was first launched and is now a fixture in almost all businesses, social media is here to stay. According to research conducted by Pew Internet, 81 percent of all internet users in Australia use social media, which is higher than that of all users in the United States, estimated at 77.3 percent.  Based on these figures alone, uses of social media like Facebook (which has been identified as the most popular option in both nations) is not about to abate any time soon. It behooves an organization, therefore, to engage in a study of its usefulness and to be realistic and strategic about its implementation.

So what steps should an ethics and compliance officer take with regard to the ultimate adoption of social media within an organization?


Engage in dialogue

The first step is dialogue. Engage with business colleagues about ways social media can be used constructively. The next step is to contrast this with the potential risks an organization faces when social media is used inappropriately. What will emerge are demonstrable ways social media can support the organization’s initiatives and steps an organization can take to confidently move forward to design and adopt standards and guidelines that uphold an organization’s values.

To quote Jeanne Meister, author of Future Workplace, “Social learning is learning between two or more people that is collaborative, immediate, and relevant … To be really useful, social media has to improve the daily work of employees.”

During discussions at the workplace, emphasize both the positives and negatives about social media usage in the workplace. Discuss risks: privacy and security breaches, legal issues, productivity, and appropriateness. Discuss benefits: sharing and collaborating via technology, achieving greater awareness of opportunities, tapping into the most-comfortable means by which employees communicate on an hourly basis, and enriching the organizational culture. Consider implementing social media training and education as an imperative toward achieving a tailored, effective social media usage in the workplace.

The result will encourage employees to use social media appropriately so they are empowered with an ongoing stake in an organization’s success.


Tim C. Mazur, chief operating officer of the Ethics and Compliance Officer Association, presented this report to the membership of the Australasian Compliance Institute (ACI) 15th annual conference in Brisbane, Australia, in October 2011.