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Risk Management Considerations
By Andrew Bland November 2010
The information in this presentation is general in nature and does not constitute
formal legal advice.
www.blandslaw.com.au
What’s Different About Social Media?
It’s public – very, very public
It’s amplified (one to many, many to many,
possibly millions)
It’s a continuous live conversation driven
by the consumer.
It’s permanent – e.g. Twitter is now
archived in the U.S. Library of Congress
It lacks much of the contextual information
of traditional media.
www.blandslaw.com.au
Reputation Management
Brand Management
Employee participation – implement a
social media policy.
One study: each negative social media
comment costs 30 customers
Another study: 34 percent of adults are
using social media as an outlet to rant
about brands and services (bad PR)
www.blandslaw.com.au
 Privacy issues
 Loss of and/or disclosure of confidential
information
 Discrimination
 Defamation
 Monitoring
 Brand, reputation and IP protection
 “Ownership” of social media accounts
 Database “theft”
 Contact / solicitation of customers post
employment via social media
www.blandslaw.com.au
 Who is going to manage social media in the organisation – consider
a collaborative approach such as Deloittes
 The nature of conduct that the employer seeks to protect itself
against
 Who should such a policy apply to for example, the entire business
or levels within the business, suppliers, business partners
contractors?
 The nature of control over social media use for example, a total ban,
limited use, total accessibility?
 Authority limits or restrictions for use for example, is permission
required, content pre-approval, who is responsible for such
approvals ?
 What can or cannot be discussed on social media forums ?
www.blandslaw.com.au
 What logos, icons, ideas can or cannot be published on social
media forums
 What disclaimers or other information must be included when
participating in a social media forum
 The nature of behaviour that is acceptable or unacceptable
 When it is and isn’t acceptable to use or participate in a social
media forum
 Reporting any breach
 Consequences of breach
 Integration into existing policies.
www.blandslaw.com.au
Provide guidelines for using social media –
you can define what you consider
appropriate
Provide recourse as an employer if
something does go wrong
If you don’t have a policy in place you may
find it hard to discipline staff for what you
consider to be inappropriate use of social
media
www.blandslaw.com.au
 How do you know what is being said about
you, your business, your competitors or your
employee’s online?
 Under the Workplace Surveillance Act 2005
(NSW)you must notify employees in the
appropriate form if you plan to monitor them.
 You cannot monitor employees when they are
‘not at work’.
 You cannot block internet access to particular
websites unless you are acting in accordance
with a policy already in place.
www.blandslaw.com.au
 Think about language and etiquette – nothing
beats good manners
 Understand that every post is public; this is
not a relationship between you and your
computer!
 Consider information you are posting; is it
confidential or private in any way?
 Think about consequences in terms of being
“quoted out of context”.
 Have systems in place for dealing with
negative events.
www.blandslaw.com.au
 Anything posted on social media should be
considered public – ie front page of the
newspaper
 Know your privacy settings, especially on
Facebook
 Be careful of “linking” private social media
accounts to company accounts
 Share freely that which is public (and
appropriate).
 Think about location based social media
networking ie do you want your competition to
know when you’re visiting clients?
www.blandslaw.com.au
Fake Stephen Conroy, Telstra Employee,
March 2009.
• Employee had fake Stephen Conroy twitter
account, made satirical comments.
• Also had a blog in which comments were made
also.
• Telstra started disciplinary proceedings, employee
posted on twitter: “throw me under the f---king bus
just to make Telstra look social-media savvy”
• Bad PR for Telstra in the way it was handled.
www.blandslaw.com.au
 April 2009, Article in SMH.
• A 27-year-old Australian woman, who did not want to
be named, said about six months ago her employer - a
large online technology company - started disciplinary
action against her over a "generic" comment she wrote
on the Facebook wall of a friend.
• She wrote something along the lines of "he's such an
anally retentive asshole", without naming any
individuals or the company. A manager at the company
thought the comments were referring to him and
refused to back down on giving her an official warning,
so she quit her job.
• "managed out" of the company.
www.blandslaw.com.au
Coles Supermarket, Edwardston (SA),
April 2010:
• Employee was sacked after postings on Facebook
about a fellow employee.
• Posted on a friends ‘wall’, so visible to visitors to
that page. Management alerted the same day.
• Management found up to six months worth of
older Facebook posts that amounted to
‘disparaging and untruthful remarks about another
team member’.
• Breach of company policy.
www.blandslaw.com.au
Melbourne Haridresser, FWA Ruling
September 2010.
• Terminated for posting on her Facebook Page
"Xmas bonus alongside a job warning, followed by
no holiday pay!!! Whoooooo! The Hairdressing
Industry rocks man!!! AWSOME!!!"
• Unfair dismissal case brought by the hairdresser.
• Hairdresser won, as the comments were not
deemed to have adversely affected the business.
• May have been different with a social media policy
in place?
www.blandslaw.com.au
Deloittes Australia – participation,
communication, transformation – via a
national social media council
Coca-Cola – great social media
participation managed via a policy
www.blandslaw.com.au
Andrew Bland
abland@blandslaw.com.au
@irlawyeraus
9805 5600
www.blandslaw.com.au

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Social media risk management issues

  • 1. Risk Management Considerations By Andrew Bland November 2010 The information in this presentation is general in nature and does not constitute formal legal advice. www.blandslaw.com.au
  • 2. What’s Different About Social Media? It’s public – very, very public It’s amplified (one to many, many to many, possibly millions) It’s a continuous live conversation driven by the consumer. It’s permanent – e.g. Twitter is now archived in the U.S. Library of Congress It lacks much of the contextual information of traditional media. www.blandslaw.com.au
  • 3. Reputation Management Brand Management Employee participation – implement a social media policy. One study: each negative social media comment costs 30 customers Another study: 34 percent of adults are using social media as an outlet to rant about brands and services (bad PR) www.blandslaw.com.au
  • 4.  Privacy issues  Loss of and/or disclosure of confidential information  Discrimination  Defamation  Monitoring  Brand, reputation and IP protection  “Ownership” of social media accounts  Database “theft”  Contact / solicitation of customers post employment via social media www.blandslaw.com.au
  • 5.  Who is going to manage social media in the organisation – consider a collaborative approach such as Deloittes  The nature of conduct that the employer seeks to protect itself against  Who should such a policy apply to for example, the entire business or levels within the business, suppliers, business partners contractors?  The nature of control over social media use for example, a total ban, limited use, total accessibility?  Authority limits or restrictions for use for example, is permission required, content pre-approval, who is responsible for such approvals ?  What can or cannot be discussed on social media forums ? www.blandslaw.com.au
  • 6.  What logos, icons, ideas can or cannot be published on social media forums  What disclaimers or other information must be included when participating in a social media forum  The nature of behaviour that is acceptable or unacceptable  When it is and isn’t acceptable to use or participate in a social media forum  Reporting any breach  Consequences of breach  Integration into existing policies. www.blandslaw.com.au
  • 7. Provide guidelines for using social media – you can define what you consider appropriate Provide recourse as an employer if something does go wrong If you don’t have a policy in place you may find it hard to discipline staff for what you consider to be inappropriate use of social media www.blandslaw.com.au
  • 8.  How do you know what is being said about you, your business, your competitors or your employee’s online?  Under the Workplace Surveillance Act 2005 (NSW)you must notify employees in the appropriate form if you plan to monitor them.  You cannot monitor employees when they are ‘not at work’.  You cannot block internet access to particular websites unless you are acting in accordance with a policy already in place. www.blandslaw.com.au
  • 9.  Think about language and etiquette – nothing beats good manners  Understand that every post is public; this is not a relationship between you and your computer!  Consider information you are posting; is it confidential or private in any way?  Think about consequences in terms of being “quoted out of context”.  Have systems in place for dealing with negative events. www.blandslaw.com.au
  • 10.  Anything posted on social media should be considered public – ie front page of the newspaper  Know your privacy settings, especially on Facebook  Be careful of “linking” private social media accounts to company accounts  Share freely that which is public (and appropriate).  Think about location based social media networking ie do you want your competition to know when you’re visiting clients? www.blandslaw.com.au
  • 11. Fake Stephen Conroy, Telstra Employee, March 2009. • Employee had fake Stephen Conroy twitter account, made satirical comments. • Also had a blog in which comments were made also. • Telstra started disciplinary proceedings, employee posted on twitter: “throw me under the f---king bus just to make Telstra look social-media savvy” • Bad PR for Telstra in the way it was handled. www.blandslaw.com.au
  • 12.  April 2009, Article in SMH. • A 27-year-old Australian woman, who did not want to be named, said about six months ago her employer - a large online technology company - started disciplinary action against her over a "generic" comment she wrote on the Facebook wall of a friend. • She wrote something along the lines of "he's such an anally retentive asshole", without naming any individuals or the company. A manager at the company thought the comments were referring to him and refused to back down on giving her an official warning, so she quit her job. • "managed out" of the company. www.blandslaw.com.au
  • 13. Coles Supermarket, Edwardston (SA), April 2010: • Employee was sacked after postings on Facebook about a fellow employee. • Posted on a friends ‘wall’, so visible to visitors to that page. Management alerted the same day. • Management found up to six months worth of older Facebook posts that amounted to ‘disparaging and untruthful remarks about another team member’. • Breach of company policy. www.blandslaw.com.au
  • 14. Melbourne Haridresser, FWA Ruling September 2010. • Terminated for posting on her Facebook Page "Xmas bonus alongside a job warning, followed by no holiday pay!!! Whoooooo! The Hairdressing Industry rocks man!!! AWSOME!!!" • Unfair dismissal case brought by the hairdresser. • Hairdresser won, as the comments were not deemed to have adversely affected the business. • May have been different with a social media policy in place? www.blandslaw.com.au
  • 15. Deloittes Australia – participation, communication, transformation – via a national social media council Coca-Cola – great social media participation managed via a policy www.blandslaw.com.au