Writer, Margaret Rouse, describes a social media policy as “a corporate code of conduct that provides guidelines for employees who post content on the internet, either as part of their job or as a private person”.

Underestimating the significance of a sound social media policy may lead to dire consequences for an organisation. Social media has two components when it comes to an organisation: management of employees communication, as well as regulation of an organisation’s online presence on social media as a marketing strategy or otherwise. Turning a blind eye to social media is no longer an option.

It is essential for an organisation and its employees to be well versed on the dangers of irresponsible use of social media, as well as the damage and reputational harm that this may bring.

The key players in defining an organisation’s social media policy are the legal team, specialist consultants with extensive expertise in this regard and the directors/board  of the company. In order to make a call on the extent of their own business presence in any given social network (if any), the following aspects need to be looked at by the directors/board of the company.

In establishing such a policy, it is important to look at the role that social media will play within that organisation and the social media strategy to be embarked upon. The policy should look at communication with employees and aligning interest and corporate culture, using social media as a forum by satisfied or aggrieved consumers, competitors, proactively engaging with consumers, building the brand of a company and whether the organisation’s culture supports the use of social media at all.

It is important to bear in mind the legal implications that exist when it comes to social media. Control of information becomes an area for consideration as social media increases awareness about a company, its products and services and assists with targeted market opportunities.

For instance, a number of issues arise in the workplace with regards to the constitutional right to privacy, which includes the right not to have the privacy of their communications infringed. As with any right, this right is not absolute. Thus, where an employee posts damaging information about an employer on a social network, they cannot rely on the notion that this information is private. This can and has resulted in the dismissal of many employees in the past. It is therefore imperative that companies set out clear policy guidelines, such as the duty to respect the privacy of their fellow employees and the implications of making use of social media.

Furthermore, vicarious liability can also become an area of concern for organisations. An employer can be held liable for harassment suffered by an employee at the hands of their superior. To the extent that this occurs on social media, the employer could be held liable, for instance in a 2012 English case, a company was found vicariously liable for the harassment of an employee on the grounds of sexual orientation. Two employees used a colleague’s smartphone without permission to post the following status on his Facebook page: “Finally came out of the closet, I am gay and proud of it”.

Other significant areas of law, which come into play include the law on the interception of communications, confidentiality and restraints, defamation and reputational harm, data privacy, unfair discrimination and hate speech, cyber bullying and harassment.

Adequate safeguards must be put in place to ensure that each of the above areas of law are appropriately addressed and a clear position by the organisation is taken on each of these issues.

It is crucial to distinguish between a social media strategy and a social media policy. Before a policy is put in place, it is important to understand and have the necessary working knowledge of new technology. Far too often, companies have made use of social media without creating a proper strategy of how to create and manage a proper presence online. Even where an acceptable policy is adopted, challenges can also arise with the implementation of the policy because social media is such a vast platform and communications cannot always be closely managed or monitored.

An organisation must understand how it is perceived in social media. If it has an online reputation, it must be aligned with its profile in understanding and ensuring that it has the tools to modify that perception. In other words, an organisation must be able to systematically gather and analyse social media information in order to assess reputational risks (current or future, direct or indirect) and to both develop and implement responses.