It is interesting to see how social media is impacting the way that corporations and individuals conduct their daily operations and communication practices.  From marketing to advertising to public relations – it appears that most of these departments are on board.  However, a recent article written by Brian Solis suggests that one group is being very cautious in joining the social media bandwagon – and these individuals work in the investor relations are of business and public relations.  Solis points out in his article by saying:

“These rules raise concerns as to the extent of transparency and humanization of the information shared, requiring a delicate balance between personality and objectivity. Remember, it’s not just what you do say and how, but also what you don’t say that can lead to speculation and movement based on interpretation and speculation.”

Of course, there are many reasons why these individuals would want to be cautious.  First, they have to make sure that the information that they are disclosing on these social media web sites such as Facebook and Twitter is following the SEC guidelines and regulations.  For example, what is going to stop an investor to disclosing information to people that are following them about a particular stock?  Or what about providing information about a possible merger?  Plus – how do we really know it is that person behind the Twitter curtain or Facebook profile that is actually reporting this information – it may just be someone completely different to even took the identity of another person.

That is one of the main issues that is facing corporations right now with the latest technology advancements – it is moving so fast that regulations and laws are having to move at warp speed to catch up.   Second – there has to be a fine balance in terms of having a corporation produce a human side to the corporation to its key stakeholders (ex. having a corporate or individual personality like a CEO representing the corporation) while also being able to maintain a strong presence in the industry (corporate reputation).

Social media continues to transform not only the communication fields, but how corporations are disseminating information to their stakeholders in various industries.  It is important for PR professionalsl to recognize both the pros and cons that may arise with social media for corporations, and it will be interesting to see what happens in terms of the regulations that may come out of these discussions.

Hope you all are having a great day. 🙂

Best Wishes,

Karen