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Social networking and reputational risk in the workplace
Deloitte LLP 2009 Ethics & Workplace Survey results
While the decision to post videos, pictures,
thoughts, experiences, and observations to
social networking sites is personal, a single act
can create far-reaching ethical consequences
for individuals as well as organizations.
Therefore it is important for executives to be
mindful of the implications and to elevate the
discussion about the risks associated with it
to the highest levels of leadership.
                                 Sharon L. Allen
                                 Chairman of the Board
                                 Deloitte LLP
Contents
Executive summary ...................................................... 2

Key findings ................................................................ 3

Additional survey data ............................................... 10

Survey methodology.................................................. 15




                                        Social networking and reputational risk in the workplace • Deloitte LLP 2009 Ethics & Workplace Survey results   1
Executive summmary
The phenomenal growth of online social networks is altering              Moreover, a mere 17% have programs in place to monitor
the way people communicate, share ideas, and disseminate                 and mitigate the potential reputational risks related to the
information. This enhanced world of connectivity is also                 use of social networks.
rapidly blurring the lines between professional and private
lives. And while the openness of these new communications                As this medium is evolving, there are different opinions
tools creates great opportunities, they can cause ethical                about use and access. Sixty percent of business executives
dilemmas for individuals and present many challenges for                 say they have the “right to know” how employees portray
businesses that can leave brands exposed and vulnerable.                 themselves and their organizations online, while 53% of
                                                                         the employees contend that “social networking pages are
Deloitte LLP’s 2009 Ethics & Workplace Survey shows                      none of an employer’s business.” In fact, nearly one third
that there is great reputational risk associated with social             of employed respondents say they never consider what the
networking as 74% of employed Americans surveyed                         boss would think before posting materials online.
believe it is easy to damage a brand’s reputation via sites
such as Facebook, Twitter, and YouTube.                                  So what should business leaders do? The easy answer is
                                                                         to establish policies and protocols. However, the survey
Organizations grapple with the notion of reputational risk               also finds that clearly defined company guidelines will
within the context of employee self-expression. Meanwhile,               not change how nearly half of respondents behave in
news of major global brands being impacted by the online                 cyberspace. Therefore, attempts to mitigate reputational
activities of their people suggests that discussions around              risk in these online communities should include an emphasis
this topic need to be elevated to the highest levels of                  on culture, values, and ethics within an organization. By
leadership. That said, surprisingly only 15% of executives               reinforcing these fundamental elements, business leaders
surveyed are addressing these risks in the board room,                   will have the opportunity to encourage good decision-
though 58% agree it is important enough to do so.                        making in virtual social networking environments. l

                                                       Social networking and reputational risk in the workplace • Deloitte LLP 2009 Ethics & Workplace Survey results   2
Key ndings




              Social networking and reputational risk in the workplace • Deloitte LLP 2009 Ethics & Workplace Survey results   3
74% of employees surveyed say
it’s easy to damage a company’s
                  Strongly disagree




                                                         Strongly agree




reputation on social media.
     Don't know




                                      Disagree


                                                 Agree




                                                                          Employee respondents...
                                                                          n Strongly agree: 24%
                                                                          n Agree: 50%
                                                                                                  74%
                                                                                                                                      }
                                                                          n Disagree: 20%
                                                                          n Strongly disagree: 3%
                                                                          n Don’t know/refused: 4%

                                                                           Social networking and reputational risk in the workplace • Deloitte LLP 2009 Ethics & Workplace Survey results   4
Fifty-eight percent of executives
            agree that reputational risk
            and social networking should
            be a board room issue,
            but only 15% say it actually is.
How are executives working to mitigate the risks of social networking media?

                   “Our executive team regularly discusses how we can best leverage                                 27%
                   social networks to our advantage while mitigating risks.”
                   “My company has formal policies that dictate how employees can
                                                                                                                    22%
                   use social networking tools.”
                   “Our senior leadership team addresses issues related to company-
                   wide social networking.”
                                                                                                                    22%
                   “My company has a program dedicated to monitoring and
                   mitigating risks related to social networks.”
                                                                                                                    17%


                                            Social networking and reputational risk in the workplace • Deloitte LLP 2009 Ethics & Workplace Survey results   5
It’s none of my boss’ business.
Fifty-three percent of employee respondents said their social
networking pages are none of their employers’ business.




                    We’re watching you anyway.
                    Forty percent of business executive respondents disagree, and
                    30% admit to informally monitoring social networking sites.




It doesn’t matter.
Sixty-one percent of employees say that even if employers are
monitoring their social networking profiles or activities, they won’t
change what they’re doing online — they know it’s not private, and
have already made significant adjustments to their online profiles.

                                    Social networking and reputational risk in the workplace • Deloitte LLP 2009 Ethics & Workplace Survey results   6
Would a company policy
change how you behave online?
49% of employees say “no.”
         Does your company have a policy about using social
         networking channels? 24% of employees don’t know.

         If your employer did something that you didn’t agree with,
         would you comment about it online? 15% said yes.

         What is your company’s                     Employee respondents...
         official policy when it                    n There are very specific guidelines as to what you can and cannot say
         comes to employee use                        online in relation to the company and/or client matters: 26%
         of social networking
                                                    n The policy is to use your discretion when it comes to posting
         channels?
                                                      comments and opinions on the world wide web and social
                         I don't know


                         NO policy
                                                      networking sites: 7%
                         YEs but i dunno
                                                    n There is a policy, but I don’t know what it is: 11%
                         YES discretionary


                         YES - speci c              n There is no policy: 23%
                                                    n Don’t know if there’s a policy: 24%

                                         Social networking and reputational risk in the workplace • Deloitte LLP 2009 Ethics & Workplace Survey results   7
What were you thinking?
                  Twenty-seven percent of employees surveyed don’t consider the
                  ethical consequences of posting comments, photos, or videos
                  online — and more than one-third don’t consider their boss, their
                  colleagues, or their clients.

                  Do you consider what                    Do you consider what your                               Do you consider what your
                  your boss would think?                  colleagues would think?                                 clients would think?
                  37% said rarely/never                   37% said rarely/never                                   34% said rarely/never
    semitemoS                               semitemoS                                               semitemoS


   reven/yleraR                            reven/yleraR                                            reven/yleraR


   wonk t'noD                              wonk t'noD                                              wonk t'noD


        syawlA                                  syawlA                                                  syawlA




                  Employee respondents...                 Employee respondents...                                 Employee respondents...
                  n Always: 40%                           n Always: 39%                                           n Always: 43%
                  n Sometimes: 17%                        n Sometimes: 19%                                        n Sometimes: 13%
                  n Rarely/never: 37%                     n Rarely/never: 37%                                     n Rarely/never: 34%
                  n Don’t know/refused: 7%                n Don’t know/refused: 5%                                n Don’t know/refused: 9%

                                                          Social networking and reputational risk in the workplace • Deloitte LLP 2009 Ethics & Workplace Survey results   8
Finding balance in social media...or not?
                   Fifty-six percent of business executive respondents say that using
                   social networking sites helps their employees achieve better
                   work-life balance, but only 31% of the employee respondents agree.

             “Using social networking sites helps employees                                                                            “Using social networking sites helps me
                   Strongly disagree




                                                                                                                                             Strongly disagree
                                                          Strongly agree




                                                                                                                                                                                    Strongly agree
      Don't know




                                                                                                                                Don't know
             achieve a better work-life balance.”                                                                                      achieve better work-life balance.”
                                       Disagree




                                                                                                                                                                 Disagree
                                                  Agree




                                                                                                                                                                            Agree
             56% of executives agree                                                                                                   31% of employees agree

                                                                           Executive respondents...                                                                                                  Employee respondents...
                                                                           n Strongly agree: 11%
                                                                           n Agree: 45%             }   56%
                                                                                                                                                                                                     n Strongly agree: 3%
                                                                                                                                                                                                     n Agree: 28%           }   31%

                                                                           n Disagree: 37%                                                                                                           n Disagree: 46%
                                                                           n Strongly disagree: 7%                                                                                                   n Strongly disagree: 19%
                                                                                                                                                                                                     n Don’t know/refused: 4%


                                                                                             Social networking and reputational risk in the workplace • Deloitte LLP 2009 Ethics & Workplace Survey results                           9
Additional survey data




             Social networking and reputational risk in the workplace • Deloitte LLP 2009 Ethics & Workplace Survey results   10
Employees: policies and practices
How often do you visit social networking sites such                     If you use social networking sites, do
as Facebook, MySpace, LinkedIn, Plaxo, Twitter,                         you access them during work hours?
YouTube, Flickr, etc?
                 Never                                                                               NO, i can't


                                                                                                     no


                 1-4                                                                                 BUS and PERSONAL


                 5+                                                                                  PERSONAL


                                                                                                     BUS only




Employee respondents...                                                 Employee respondents...
n Five or more times per week: 22%                                      n Yes, you access social networking sites during work
n One to four times per week: 23%                                         hours ONLY for business reasons: 6%

n Once a week: 10%                                                      n Yes, you access social networking sites during work
                                                                          hours ONLY for personal reasons: 5%
n Never: 44%
                                                                        n Yes, you access social networking sites during work
                                                                          hours for BOTH business and personal reasons: 10%
                                                                        n No, you choose not to use social networking sites
                                                                          during work hours: 52%
                                                                        n No, your company’s network prevents you from
                                                                          accessing these sites: 26%




                                                      Social networking and reputational risk in the workplace • Deloitte LLP 2009 Ethics & Workplace Survey results   11
Employees: consequences
           “In the past six months, at least           “The economy is forcing you to be                                                            “The content on your
           one of your colleagues was let              much more conservative online, as                                                            Facebook, MySpace or
           go because of inappropriate                 you fear that your employer can                                                              Twitter pages prevented
don't know/refused




                                               don't know/refused




                                                                                                                                         don't know/refused
           behavior online.”                           use anything and everything as an                                                            you from getting a job.”
                     false




                                                                    false
                             true




                                                                            true




                                                                                                                                                              false


                                                                                                                                                                      true
                                                       excuse to fire you.”




           Employee respondents...                      Employee respondents...                                                                     Employee respondents...
           n True: 7%                                   n True: 29%                                                                                 n True: 2%
           n False: 73%                                 n False: 60%                                                                                n False: 89%
           n Don’t know/refused: 20%                    n Don’t know/refused: 11%                                                                   n Don’t know/refused: 8%




                                                                                   Social networking and reputational risk in the workplace • Deloitte LLP 2009 Ethics & Workplace Survey results   12
Executives: how connected are you?
                    We utilize social
  Our CEO is on     networking as a tool    We utilize social                              My company has an                               My company has a
  Facebook: 31%     to manage and build     networking for recruiting                      employee-created                                corporate-sponsored
                    our brand: 29%          purposes: 23%                                  Facebook group: 18%                             Facebook group: 11%

         Social networking     We utilize social              We utilize social                        Our CEO
         is part of our        networking                     networking                               has a Twitter
         business and          as an internal                 to engage                                profile: 14%
         operations            communications                 employees: 21%
         strategy: 30%         tool: 23%                                                                                We post
                                                                                                                        corporate videos
                                                                                                                        on YouTube: 13%




                         There is still more to learn. Fifty-five percent of executives
                         say their companies don’t have an official use of social
                         networks, and 22% said their companies would like to use
                         social networking tools, but haven’t yet figured out how.

                                                   Social networking and reputational risk in the workplace • Deloitte LLP 2009 Ethics & Workplace Survey results   13
Executives: risk mitigation
       “Our executive team               “My company has a                            “My company has formal                                  “Our senior leadership
       regularly discusses how           program dedicated                            policies that dictate how                               team addresses
       we can best leverage              to monitoring and                            employees can use social                                issues related to
       social networks to                mitigating risks related                     networking tools.”                                      company-wide social
       our advantage while               to the use of social                                                                                 networking.”




                                                                                                                                       Don't know
Don't know




                                  Don't know




                                                                               Don't know




                                                                                                                                                    False
             False




                                               False
       mitigating risks.”                networks.”




                                                                                            False




                                                                                                                                                            True
                     True




                                                       True




                                                                                                    True
       Executive respondents...          Executive respondents...                     Executive respondents...                                Executive respondents...
       n True: 27%                       n True: 17%                                  n True: 22%                                             n True: 22%
       n False: 67%                      n False: 76%                                 n False: 72%                                            n False: 71%
       n Don’t know/refused: 6%          n Don’t know/refused: 7%                     n Don’t know/refused: 6%                                n Don’t know/refused: 7%




                                                              Social networking and reputational risk in the workplace • Deloitte LLP 2009 Ethics & Workplace Survey results   14
Survey methodology
Opinion Research Corporation conducted                                                     Opinion Research also conducted an online
a telephone survey on behalf of Deloitte                                                   survey of 500 business executives. The
LLP among a national probability sample of                                                 sample for the study came from a panel
2,008 employed adults comprising 1,000                                                     of executives across the United States,
men and 1,008 women 18 years of age and                                                    including company owners, directors, CEOs,
older, living in private households in the                                                 controllers, EVPs, CIOs, VPs, and board
continental United States. Interviewing for                                                members. Invitations to participate in the
these CARAVAN® Surveys was completed                                                       study were sent beginning on April 10,
during the period April 9-13 and 16-19,                                                    2009 and data collection continued through
2009. Sampling error is +/- 2.5%.                                                          April 17, 2009.




Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is a legally separate and
independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its member firms.

Copyright © 2009 Deloitte Development LLC. All rights reserved. OOC 0082

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Deloitte 2009 Ethics Workplace Survey

  • 1. Social networking and reputational risk in the workplace Deloitte LLP 2009 Ethics & Workplace Survey results
  • 2. While the decision to post videos, pictures, thoughts, experiences, and observations to social networking sites is personal, a single act can create far-reaching ethical consequences for individuals as well as organizations. Therefore it is important for executives to be mindful of the implications and to elevate the discussion about the risks associated with it to the highest levels of leadership. Sharon L. Allen Chairman of the Board Deloitte LLP
  • 3. Contents Executive summary ...................................................... 2 Key findings ................................................................ 3 Additional survey data ............................................... 10 Survey methodology.................................................. 15 Social networking and reputational risk in the workplace • Deloitte LLP 2009 Ethics & Workplace Survey results 1
  • 4. Executive summmary The phenomenal growth of online social networks is altering Moreover, a mere 17% have programs in place to monitor the way people communicate, share ideas, and disseminate and mitigate the potential reputational risks related to the information. This enhanced world of connectivity is also use of social networks. rapidly blurring the lines between professional and private lives. And while the openness of these new communications As this medium is evolving, there are different opinions tools creates great opportunities, they can cause ethical about use and access. Sixty percent of business executives dilemmas for individuals and present many challenges for say they have the “right to know” how employees portray businesses that can leave brands exposed and vulnerable. themselves and their organizations online, while 53% of the employees contend that “social networking pages are Deloitte LLP’s 2009 Ethics & Workplace Survey shows none of an employer’s business.” In fact, nearly one third that there is great reputational risk associated with social of employed respondents say they never consider what the networking as 74% of employed Americans surveyed boss would think before posting materials online. believe it is easy to damage a brand’s reputation via sites such as Facebook, Twitter, and YouTube. So what should business leaders do? The easy answer is to establish policies and protocols. However, the survey Organizations grapple with the notion of reputational risk also finds that clearly defined company guidelines will within the context of employee self-expression. Meanwhile, not change how nearly half of respondents behave in news of major global brands being impacted by the online cyberspace. Therefore, attempts to mitigate reputational activities of their people suggests that discussions around risk in these online communities should include an emphasis this topic need to be elevated to the highest levels of on culture, values, and ethics within an organization. By leadership. That said, surprisingly only 15% of executives reinforcing these fundamental elements, business leaders surveyed are addressing these risks in the board room, will have the opportunity to encourage good decision- though 58% agree it is important enough to do so. making in virtual social networking environments. l Social networking and reputational risk in the workplace • Deloitte LLP 2009 Ethics & Workplace Survey results 2
  • 5. Key ndings Social networking and reputational risk in the workplace • Deloitte LLP 2009 Ethics & Workplace Survey results 3
  • 6. 74% of employees surveyed say it’s easy to damage a company’s Strongly disagree Strongly agree reputation on social media. Don't know Disagree Agree Employee respondents... n Strongly agree: 24% n Agree: 50% 74% } n Disagree: 20% n Strongly disagree: 3% n Don’t know/refused: 4% Social networking and reputational risk in the workplace • Deloitte LLP 2009 Ethics & Workplace Survey results 4
  • 7. Fifty-eight percent of executives agree that reputational risk and social networking should be a board room issue, but only 15% say it actually is. How are executives working to mitigate the risks of social networking media? “Our executive team regularly discusses how we can best leverage 27% social networks to our advantage while mitigating risks.” “My company has formal policies that dictate how employees can 22% use social networking tools.” “Our senior leadership team addresses issues related to company- wide social networking.” 22% “My company has a program dedicated to monitoring and mitigating risks related to social networks.” 17% Social networking and reputational risk in the workplace • Deloitte LLP 2009 Ethics & Workplace Survey results 5
  • 8. It’s none of my boss’ business. Fifty-three percent of employee respondents said their social networking pages are none of their employers’ business. We’re watching you anyway. Forty percent of business executive respondents disagree, and 30% admit to informally monitoring social networking sites. It doesn’t matter. Sixty-one percent of employees say that even if employers are monitoring their social networking profiles or activities, they won’t change what they’re doing online — they know it’s not private, and have already made significant adjustments to their online profiles. Social networking and reputational risk in the workplace • Deloitte LLP 2009 Ethics & Workplace Survey results 6
  • 9. Would a company policy change how you behave online? 49% of employees say “no.” Does your company have a policy about using social networking channels? 24% of employees don’t know. If your employer did something that you didn’t agree with, would you comment about it online? 15% said yes. What is your company’s Employee respondents... official policy when it n There are very specific guidelines as to what you can and cannot say comes to employee use online in relation to the company and/or client matters: 26% of social networking n The policy is to use your discretion when it comes to posting channels? comments and opinions on the world wide web and social I don't know NO policy networking sites: 7% YEs but i dunno n There is a policy, but I don’t know what it is: 11% YES discretionary YES - speci c n There is no policy: 23% n Don’t know if there’s a policy: 24% Social networking and reputational risk in the workplace • Deloitte LLP 2009 Ethics & Workplace Survey results 7
  • 10. What were you thinking? Twenty-seven percent of employees surveyed don’t consider the ethical consequences of posting comments, photos, or videos online — and more than one-third don’t consider their boss, their colleagues, or their clients. Do you consider what Do you consider what your Do you consider what your your boss would think? colleagues would think? clients would think? 37% said rarely/never 37% said rarely/never 34% said rarely/never semitemoS semitemoS semitemoS reven/yleraR reven/yleraR reven/yleraR wonk t'noD wonk t'noD wonk t'noD syawlA syawlA syawlA Employee respondents... Employee respondents... Employee respondents... n Always: 40% n Always: 39% n Always: 43% n Sometimes: 17% n Sometimes: 19% n Sometimes: 13% n Rarely/never: 37% n Rarely/never: 37% n Rarely/never: 34% n Don’t know/refused: 7% n Don’t know/refused: 5% n Don’t know/refused: 9% Social networking and reputational risk in the workplace • Deloitte LLP 2009 Ethics & Workplace Survey results 8
  • 11. Finding balance in social media...or not? Fifty-six percent of business executive respondents say that using social networking sites helps their employees achieve better work-life balance, but only 31% of the employee respondents agree. “Using social networking sites helps employees “Using social networking sites helps me Strongly disagree Strongly disagree Strongly agree Strongly agree Don't know Don't know achieve a better work-life balance.” achieve better work-life balance.” Disagree Disagree Agree Agree 56% of executives agree 31% of employees agree Executive respondents... Employee respondents... n Strongly agree: 11% n Agree: 45% } 56% n Strongly agree: 3% n Agree: 28% } 31% n Disagree: 37% n Disagree: 46% n Strongly disagree: 7% n Strongly disagree: 19% n Don’t know/refused: 4% Social networking and reputational risk in the workplace • Deloitte LLP 2009 Ethics & Workplace Survey results 9
  • 12. Additional survey data Social networking and reputational risk in the workplace • Deloitte LLP 2009 Ethics & Workplace Survey results 10
  • 13. Employees: policies and practices How often do you visit social networking sites such If you use social networking sites, do as Facebook, MySpace, LinkedIn, Plaxo, Twitter, you access them during work hours? YouTube, Flickr, etc? Never NO, i can't no 1-4 BUS and PERSONAL 5+ PERSONAL BUS only Employee respondents... Employee respondents... n Five or more times per week: 22% n Yes, you access social networking sites during work n One to four times per week: 23% hours ONLY for business reasons: 6% n Once a week: 10% n Yes, you access social networking sites during work hours ONLY for personal reasons: 5% n Never: 44% n Yes, you access social networking sites during work hours for BOTH business and personal reasons: 10% n No, you choose not to use social networking sites during work hours: 52% n No, your company’s network prevents you from accessing these sites: 26% Social networking and reputational risk in the workplace • Deloitte LLP 2009 Ethics & Workplace Survey results 11
  • 14. Employees: consequences “In the past six months, at least “The economy is forcing you to be “The content on your one of your colleagues was let much more conservative online, as Facebook, MySpace or go because of inappropriate you fear that your employer can Twitter pages prevented don't know/refused don't know/refused don't know/refused behavior online.” use anything and everything as an you from getting a job.” false false true true false true excuse to fire you.” Employee respondents... Employee respondents... Employee respondents... n True: 7% n True: 29% n True: 2% n False: 73% n False: 60% n False: 89% n Don’t know/refused: 20% n Don’t know/refused: 11% n Don’t know/refused: 8% Social networking and reputational risk in the workplace • Deloitte LLP 2009 Ethics & Workplace Survey results 12
  • 15. Executives: how connected are you? We utilize social Our CEO is on networking as a tool We utilize social My company has an My company has a Facebook: 31% to manage and build networking for recruiting employee-created corporate-sponsored our brand: 29% purposes: 23% Facebook group: 18% Facebook group: 11% Social networking We utilize social We utilize social Our CEO is part of our networking networking has a Twitter business and as an internal to engage profile: 14% operations communications employees: 21% strategy: 30% tool: 23% We post corporate videos on YouTube: 13% There is still more to learn. Fifty-five percent of executives say their companies don’t have an official use of social networks, and 22% said their companies would like to use social networking tools, but haven’t yet figured out how. Social networking and reputational risk in the workplace • Deloitte LLP 2009 Ethics & Workplace Survey results 13
  • 16. Executives: risk mitigation “Our executive team “My company has a “My company has formal “Our senior leadership regularly discusses how program dedicated policies that dictate how team addresses we can best leverage to monitoring and employees can use social issues related to social networks to mitigating risks related networking tools.” company-wide social our advantage while to the use of social networking.” Don't know Don't know Don't know Don't know False False False mitigating risks.” networks.” False True True True True Executive respondents... Executive respondents... Executive respondents... Executive respondents... n True: 27% n True: 17% n True: 22% n True: 22% n False: 67% n False: 76% n False: 72% n False: 71% n Don’t know/refused: 6% n Don’t know/refused: 7% n Don’t know/refused: 6% n Don’t know/refused: 7% Social networking and reputational risk in the workplace • Deloitte LLP 2009 Ethics & Workplace Survey results 14
  • 17. Survey methodology Opinion Research Corporation conducted Opinion Research also conducted an online a telephone survey on behalf of Deloitte survey of 500 business executives. The LLP among a national probability sample of sample for the study came from a panel 2,008 employed adults comprising 1,000 of executives across the United States, men and 1,008 women 18 years of age and including company owners, directors, CEOs, older, living in private households in the controllers, EVPs, CIOs, VPs, and board continental United States. Interviewing for members. Invitations to participate in the these CARAVAN® Surveys was completed study were sent beginning on April 10, during the period April 9-13 and 16-19, 2009 and data collection continued through 2009. Sampling error is +/- 2.5%. April 17, 2009. Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its member firms. Copyright © 2009 Deloitte Development LLC. All rights reserved. OOC 0082