Why Business Sustainability Plans Need a Social Media Strategy

“While many companies do have e-mail communication and technology usage policies, very few companies have policies that specifically address social media governance and risks.”

This quote was taken from a Canadian Insurance and Risk Magazine article which recently reported that companies expect to exponentially increase their use social media; however, few organizations understand or manage the resulting business sustainability risk. Referencing the result from a Financial Executives Research Foundation Inc. (FERF) survey, the article highlights some key findings that our sustainability consulting practice takes seriously.

48% of the executives responding to the survey felt social media would be an important component of corporate marketing efforts going forward.
53% of respondents predicted the corporate use of social media would increase significantly over the next 12 months.
76% of respondent companies do not have a clearly defined social media policy.
61% of respondents indicated their organizations do not have an incident management plan to help them deal with instances of fraud and/or privacy breaches.

Supported by these results, we believe there is an emerging role for social media in stakeholder engagement and for businesses to communicate their broader corporate responsibility agenda. Social media provides individuals, communities, businesses, and non-government organizations the ability to connect with business in meaningful discussion from anywhere in the world in real time.

However to focus the corporate ear, business sustainability minded organizations must effectively and mindfully engage with those stakeholders who have a vested interest in the success of the business. Our professional consulting stresses the importance of a defined social media strategy as part of an overall business sustainability plan. For more information, visit with us at Taiga Company.