Could Social Media negatively impact on Organisations?

Today, businesses have found a new place to advertise themselves through social media sites. Having a medium available to connect with customers in a non formal way creates loyalty and awareness but could leave a company vulnerable to hackers and phishers feeling the squeeze on your new found success. A social site provides information on what your company is doing and offers a platform to generate spiteful negative comments that could hurt the reputation of your business (Mellisa, 2011).

Selected Organisation: Microsoft

Founded in 1975, Microsoft is the worldwide leader in software, services and solutions. They have over 90,000 employees from all over the world and their revenue is 69.94 billion (Agencies, 2011).

Some of the major legal risks that Microsoft could face as a result of using Social Media and how they can avoid them:

Microsoft uses social media to market themselves very widely (Facebook, Youtube, Twitter, Microsoft Answers… etc) , therefore, many different legal risks could occur. The following table (table 1.0) that I made will cover 3 major legal risks, their possible scenarios and how Microsoft could avoid these possible scenarios:

Table 1.0: Risk, Possible Scenarios and Prevention Strategies

Recommended Readings:

Microsoft Leaked Its Own Social Networking Secret, Then Swore It Was Accidental



Agencies. (2011). Microsoft quarterly earnings beat estimates Retrieved August 23, 2011 from Global Times

Melissa. (2011). Dangers of Social Networking Sites; Businesses, Job Seekers, Children and Adults Beware!. Retrieved August 23, 2011 from optimum7

Brooks, R. (2010). The 5 Biggest Social Media Security Risks for Businesses. Retrieved August 23, 2011 from FC EXPERT BLOGGER

McGonegle, M. (2011). Managing Your Company’s Social Media Risk. Retrieved August 23, 2011 from Sustainable Business Forum


About Morohen
This blog is created for INN346 Enterprise 2.0 subject | Queensland University of Technology

11 Responses to Could Social Media negatively impact on Organisations?

  1. A great post! How can the risk be minimised for such a big company for microsoft?

    • zhuoranzhang says:

      in my opinion, because of huge number of customer, just a little improper word can make Microsoft lost a lot number of customers

  2. Hi Morogen, Does Microsoft have a social media policy in place for its staff? It seems that this would be a number 1 priority for such a big company.

  3. zhuoranzhang says:

    wow! That awesome! It makes me want to read some Microsoft employees’ blog

  4. aldubayyan says:

    Interesting post about Microsoft!! Such a big company like Microsoft must be careful of using social media and train its staff about policies in order to maintain its customers.

  5. jisiyuan2007 says:

    I like your table format, very clearly!!

  6. Great Post . I liked the article in particular not a bad marketing ploy leaking your own product .

  7. Pingback: Corporate Wikis: Implementation Strategies | MOROHEN

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