eSSAY TOPIC 1 : The ROLE OF SOCIAL MEDIA |
Social Media: |
Its impact on directors and businesses |
|
FARAI MURUMBI |
MRMFAR002 |
Abstract This artcle discusses the impact of social media on directors’ fiduciary duties. It mainly seeks to evaluate its impact on corporate governance, stakeholder relationships and company policies. It has both negative and positive impacts on the above mentioned. Social media could be beneficial if it is used in a sensible controlled manner and if a clear strategy is set in place. This article also includes recommendation on how directors can optimize on social media. It also draws on real life examples to fully illustrate social media impacts. Despite many negative impacts that come with social media, its role in business is clear and cannot be set aside or ignored. 107 words |
Twitter! Facebook! Tumbler! LinkedIn! are social media sites we have either heard of or we actively use. Social media has become a powerful business vehicle worth USD 104 billion (Businesss Questions 2012) and its presence cannot simply be ignored. There is a social outcry for directors to integrate social media in their businesses to help execute their fiduciary duties. Should they answer to the call? How will it impact corporate governance, stakeholder relationships and company policies over social media usage? This article will help in answering some of these questions and evaluate if indeed it assists in executing fiduciary duties.
It is best to first define social media and fiduciary duties. According to social media expert, Ivy Wigmore, social media is defined as,” Social media is the collective of online communications channels dedicated to community-based input, interaction, content-sharing and collaboration.” It includes websites and applications...