Legal issues of Social Media
Having a legal issue being imposed on your company, can be damaging to the companies reputation. Especially, there is no ideas into what can happen to any sort of information that maybe leaked from within the company to the world just through a simple post on a social media website.
Take banks for instances, there have been many cases whereby they have embraced Web 2.0 technology to develop a trust relationship with its customers. Community Building, Product Research, Customer Service, Marketing & Promotion and finally Transparency, these are the five ways that Lon S. Cohen has described as the ways banks have embraced the Web 2.o technology. There has been the issue of banks not implementing a strict regulation of the industry and might be overwhelmed with potential legal risks, as mentioned by Teale Shapcott on his personal blog: he lists 6 potential legal risks that a bank may encounter; they are Confidential Information Risk, Misleading or Decepetive Conduct, Industry Specific Risk, Privacy, Negligent Misstatement and Reputation. Just have a thought, when was the last time your bank was on a social media site and potential legal risks have occured?