Social Media Legal Risks and Mitigation

August 21, 2010 § 3 Comments

According to Komarketing Associates some statistics states that 97% of the top companies today doesn’t use blogging or twitter to promote their online visibility. There are a few exceptions to this and one company that implements social media to promote their company online is Pepsi.

Pepsi is one of the leading softdrink producing company, its distributed around the world and is one of the most successful companies to date.

Pepsi uses social media in the likes of FriendFeed and they call it ‘The Pepsi Cooler‘. Here they can monitor the comments of their clients and customers in order to provide a better product for them. They rolled out a whole new brand identity recently and now are eager to engage in online communities.

With this involvement Pepsi can also be applicable to any legal risks and mitigation.

They can have a competition disadvantage because this is a public feed, it will be available to everyone as well as to every company or competition that are interested to what Pepsi is up to based on the user feedback and user knowledge.

This can also hold up the Pepsi operation if the employees do not abide by the standard of the web with either defamation of their own company or risking the image that Pepsi built, as been said that this is a public site where everyone can view, so one single mistake could provide a big hit to the organisation’s reputation.

For Pepsi to mitigate these risks they could apply a contract to their employees and any other third party source that using a social media indifferently would risks potential opportunities and compromise the business. For the competitive advantage Pepsi should implement this as a source of feeds and ideas to provide their own organisation not as a plan to upgrade a product or whatsoever, they could easily gather ideas and opinions to recognise the need of options and ideas.

Overall the benefits for this type of approach is limitless but there are also lots of risks involve, but with better judgment and use this opportunity would only turn into GOLD.


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§ 3 Responses to Social Media Legal Risks and Mitigation

  • […] big risks. Therefore, some companies are not using the web 2.0 because of these risks. According karlovsworld “Komarketing Associates statistics states that 97% of the top companies today don’t use […]

  • I think it’s a great idea for large companies like Pepsi to be actively trying to leverage a solid user base on as many social networking platforms as possible. It’s free advertising to me and in their case I’m sure other companies would pay to advertise with them. They just have to make sure the employees curating the sites are professional. I imagine it would be a pretty full on job updating social networks for a company as large as Pepsi anyways.

  • shanechristie says:

    I agree buddy, there are risks. People badmouthing and all that jazz (especially within the company) but when it comes down to it, i think there are more people that like the drink that subscribe to its public feeds than people that dislike it.

    or just delete the bad comments 😉

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