Impact of Executive Social Media Activity on the Company

Instructor: Artem Cheprasov

Artem has a doctor of veterinary medicine degree.

In this lesson, we'll first go over the many positive impacts an executive's use of social media can bring about. Then, we'll cover three important negative impacts that could arise instead.

Social Media Impacts

Social media, like Twitter, Facebook, and LinkedIn, can be tremendously beneficial to just about anyone who takes advantage of them. They can help forge strong networks and build careers. Of course, social media can also be fraught with peril.

In this lesson, we focus on how an executive's use of social media can impact a company or brand in a positive as well as a negative manner.

Positive Impacts

Research has demonstrated that when executives properly utilize social media, it can help improve a company's reputation.

There are many potential reasons for why this is so. One could be that social CEOs disseminate positive information, which is then spread by others, such as employees, who receive it. The information can also help defend a company against unfair information aimed against it.

The consequential impacts stemming from this main impact are many. For example, it can improve a company's business results as it wins over new customers, investors, and partners necessary for growth.

An executive's use of social media can also help recruit top employees. Again, there are numerous reasons for this. In some cases, prospective employees want to be in a company where executives are social and accessible. In other cases, it's the message that executives send out that helps land an innovative new employee. The prospect of working for an influencer also can be enticing for one's own career growth.

The consequential impacts of getting the best minds are multi-fold. By recruiting better employees, a company can increase innovation, gain a competitive edge as a result, and improve its business results as a consequence of that.

Negative Impacts

Now, there is always a flip side. While the positive impacts of an executive's use of social media are clearly many, there are just as many potentially negative impacts the improper use of social media can have.

Here are just some of them:

1. Lawsuits. One wrong word can lead to a very expensive lawsuit that could hurt a company's bottom line. This could be as a result of some sort of disparaging remark made out of bad judgment or by revealing a partner's proprietary information by accident.

2. Cyber security risks. There is the potential that an executive's social media account and, by extension, potentially other accounts, could be compromised by hackers. Those hackers could then steal important trade secrets, hold information for ransom, or just negatively troll/abuse the account, damaging a company's reputation in the process.

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