Legal Reasons Why Your Company Should Have a Social Networking Policy

by Fred Abramson on June 3, 2009 · 3 comments

Your employees are probably participating in social networking sites such as Facebook, LinkedIn and Twitter. But what are your workers doing on Facebook while on the clock? Are they networking or are they sharing their 5 favorite beers? On the one hand, you want to trust your employees and make them feel like they have autonomy to perform their work duties. On the other hand, you are paying them to work and you want them to present themselves professionally.

Recently, staffers of The Wall Street Journal were provided a compiled list of rules for “professional conduct” which regulates online behavior. Should your company follow the lead of the Wall Street Journal and draft a written social networking policy advising what your employees can post while working at the office? If you would like to limit potential company liability to lawsuits, the answer is yes. Here are 5 reasons why:

1. A written social networking policy may shield your Company from defamation lawsuits. What happens if your employee starts posting on Facebook untrue statements about a competitor? Without a written social networking policy, your Company could be sued for defamation.

2. Potential disclosure of Company proprietary information. Let’s say that your business has created the next killer app that will be ready to launch in 3 months. By having a non-disclosure section written into your social networking policy, your employee would be on notice and could be held liable for posting on LinkedIn such information.

3. Your business’s social networking use policy should encourage positive and constructive use of the social networking sites, as well as to prevent the use of such sites for personal or inappropriate reasons. You could be held liable for anything that your employees say of a personal nature on social networking sites.

4. Potential use in litigation. Information disseminated by your employees on social networking sites can be uncovered by a potential adversary and used against your company in litigation. Therefore, you should be clear about the type of topics that can be discussed on social networking sites.

5. Intellectual Property. Trademark and Copyright laws extend to what your post on social networking sites. Your social networking policy should make clear that your employees should refrain from posting trademarked or copyrighted material while representing the company.
So, your Company should regulate social networking use in a more expanded way than the way you regulate other Internet use. By being upfront about the potential problems of social networking, you could help both you and your employees successfully utilize this tool and avoid unwanted lawsuits.

Further Resource:

Online database of social networking policies.

Contact the Law Office of Frederic R. Abramson at 212-233-0666 for more information about social networking policies.

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  • Anne

    Every business would benefit from having a social media policy in place, but it should not be an all or nothing approach. Instead of having a policy in place that blocks social media completely or doesn’t block social media at all and expects employees to follow policy rules, why not block some pieces of social media and keep some parts of social media accessible? Social media is growing in the business world and companies would be missing out on its benefits if it is blocked entirely. Palo Alto Networks might have found a solution to this problem, they have a new software that has the ability to do thing such as a read-only facebook. I think companies could really benefit from something like this, what do you think? Here's a link to new whitepapers they have created:

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