Corporate Use of Social Media: A Fine Line Between What Could-, Would-, and Should-be Posted

 

Introduction

In recent years, social media has taken a hold on nearly every aspect of human interaction and turned the way we communicate on its head. Social media apps’ high speed capability of disseminating information instantaneously have affected the way many sectors of business operate. From entertainment, social, environmental, educational, or financial, social media has bewildered the legal departments of many in house general counsels across all industries. Additionally, the generational shaft between the person actually posting for the account versus their supervisor has only exacerbated the potential for communications to miss their mark and cause controversy or adverse effects.

These days, most companies have social media accounts, but not all accounts are created equal, and they certainly are not all monitored the same. In most cases, these accounts are not regulated at all except by their own internal managers and #CancelCulture. Depending on the product or company, social media managers have done their best to stay abreast of changes in popular hashtags, trends and challenges, and the overall shift from a corporate tone of voice to one of relatability–more Gen-Z-esque, if you will. But with this shift, the rights and implications of corporate speech through social media has been put to the test.

Changes in Corporate Speech on Social Media 

In the last 20 years, corporate use of social media has become a battle of relevance. With the decline of print media, social media, and its apps, have emerged as a marketing necessity. Early social media use was predominantly geared towards social purposes. If we look at the origins of Facebook, Myspace, and Twitter it is clear that these apps were intended for superficial uses—not corporate communications—but this all changed with the introduction of LinkedIn, which sparked a dynamic shift towards business and professional use of social media.

Today social media is used to report on almost every aspect of our lives, from disaster preparation and emergency responses to political updates, to dating and relationship finders, and customer service based tasks, social media truly covers all. It is also more common now days to get backlash for not speaking out or using social media after a major social or political movement occurs. Social media is also increasingly being used for research with geolocation technology, for organizing demonstrations and political unrest, and in the business context, for development in sales, marketing, networking, and hiring or recruiting practices.

These changes are starting to lead to significant conversations in the business world when it comes to company speech, regulated disclosures and First Amendment rights. For example, so far, there is minimal research on how financial firms disseminate communications to investor news outlets via social media and in which format they are being responded to. And while some may view social media as an opportunity to further this kind of investor outreach, others have expressed concerns that disseminating communications in this manner could result in a company’s loss of control over such communications entirely.

The viral nature of social media allows not just investors to connect more easily with companies but also with individuals who may not directly follow that company and would therefore be a lot less likely to be informed about a company’s prior financial communications and the importance of any changes. This creates risk for a company’s investor communications via social media because of the potential to spread and possibly reach uniformed individuals which could in turn produce adverse consequences for the company when it comes to concerns about reliance and misleading information.

Corporate Use, Regulations, and Topics of Interest on Social Media 

With the rise of social media coverage on various societal issues, these apps have become a platform for news coverage, political movements, and social concerns and, for some generations, a platform that replaces traditional news media almost entirely. Specifically, when it comes to the growing interest in ESG related matters and sustainable business practices, social media poses as a great tool for information communication. For example, the Spanish company Acciona has recently been reported by the latest Epsilon Icarus Analytics Panel on ESG Sustainability, as having Spain’s highest resonating ESG content of all their social networks. Acciona demonstrates the potential leadership capabilities for a company to fundamentally impact and effectuate digital communications on ESG related topics. This developing content strategy focuses on brand values, and specifically, for Acciona, strong climate-change based values, female leadership, diversity, and other cultural, societal changes which demonstrates this new age of social media as a business marketing necessity.

Consequentially, this shift in usage of social media and the way we treat corporate speech on these platforms has left room for emerging regulation. Commercial or corporate speech is generally permissible under Constitutional Free Speech rights, so long as the corporation is not making false or misleading statements. Section 230 provides broad protection to internet content providers from accountability based on information disseminated on their platform. In most contexts, social media platforms will not be held accountable for the consequences resulting therefrom (i.e. a bad user’s speech). For example, a recent lawsuit was dismissed in favor of the defendant, TikTok, and its parent company, after a young girl died from participation in a trending challenge that went awry because under § 230 the platform was immune from liability.

In essence, when it comes to ESG-related topics, the way a company handles its social media and the actual posts they put out can greatly affect the company’s success and reputation as often ESG focused perspectives affect many aspects of the operation of the business. The type of communication, and coverage on various issues, can impact a company’s performance in the short term and long term hemispheres–the capability of which can effectuate change in corporate environmental practices, governance, labor and employment standards, human resource management and more.

With ESG trending, investors, shareholders, and regulators now face serious risk management concerns. Companies must now, more publicly, address news concerning their social responsibilities, on a much more frequent basis as ESG concerns continue to rise. Public company activities, through Consumer Service Reports, are mandated in annual 10-K filings and disclosures by the SEC, along with ESG disclosures thanks to a recent rule promulgation. These disclosures are designed to hold accountable and improve environmental, social, and economic performance when it comes to their respective stakeholders’ expectations.

Conclusion

In conclusion, social media platforms have created an entirely new mechanism for corporate speech to be implicated. Companies should proceed cautiously when covering social, political, environmental, and related concerns and their methods of information dissemination as well as the possible effects their posts may have on business performance and reputation overall.

Cancel Culture….. The Biggest Misconception of the 21st Century

Cancel Culture  refers to the popular practice of withdrawing support for (canceling) public figures and companies after they have done or said something considered objectionable or offensive.

Being held accountable isn’t new.

If a public figure has done something or has said something offensive to me why can’t I express my displeasure or discontinue my support for them? Cancel culture is just accountability culture. Words have consequences, and accountability is one of them. However, this is nothing new. We are judged by what we say in our professional and personal lives. For example, whether we like it or not when we’re on a job hunt we are held accountable for what we say or may have said in the past. According to Sandeep Rathore, (2020, May 5). 90% of Employers Consider an Applicant’s Social Media Activity During Hiring Process, employers believe that social media is important to assess job candidates. This article explains that these jobs are  searching your social media for certain red flags like, anything that can be considered hate speech, illegal or illicit content, negative comments about previous jobs or client, threats to people or past employers, confidential or sensitive information about people or previous employers. Seems like a prospective employer can cancel you for a job for things you may have done or said in the past. Sound familiar?

You ever been on a first date? Has your date ever said something so objectionable or offensive that you just cancel them after the first date? I’m sure it has happened to some people. This is just another example of people being held accountable for what they say.

Most public figures who are offended by cancel culture have a feeling of entitlement. They feel they have the right to say anything, even if it’s offensive and hurtful, and bear no accountability. In Sarah Hagi, (2019 November 19). Cancel Culture is not real, at least not in the way people believe it is, Hagi explained that Cancel Culture is turned into a catch-all for when people in power face consequences for their actions or receive any type of criticism, something that they’re not used to.”

What harm is Cancel Culture causing?

Many cancel culture critics say cancel culture is limiting free speech. This I don’t get. The very essence of cancel culture is free speech. Public figures have the right to say what they want and the public has the right to express disapproval and displeasure with what they said. Sometimes this comes in the form of boycotting, blogging, social media posting etc. Public figures who feel that they have been cancelled might have bruised egos, be embarrassed, or might have their career impacted a little but that comes as a consequence of free speech. A Public figure losing fans, customers, or approval in the public eye is not an infringement on their rights. It’s just the opposite. It’s the people of the public expressing their free speech. They have the right to be a fan of who they want, a customer of who they want, and to show approval for who they want. Lastly, Cancel Culture can be open dialogue but  rarely do we see the person that is on the receiving end of a call out wanting to engage in open dialogue with the people who are calling them out.

No public figures are actually getting cancelled.

According to AJ Willingham, (2021 March 7). It’s time to Cancel this talk of cancel culture, “people who are allegedly cancelled still prevail in the end”.  The article gives an example of when Dr. Sues was supposedly cancelled due to racist depictions in his book, but instead his book sales actually went up.  Hip Hop rapper Tory Lanez was supposedly cancelled for allegedly shooting  female rapper Megan the stallion in the foot. Instead of being cancelled he dropped an album describing what happened the night of the shooting and his album skyrocketed in sales. There are numerous examples that show that people are not really being cancelled, but instead simply being called out for their objectionable or offensive behavior.

Who are the real victims here?

In AJ Willingham, (2021 March 7). It’s time to Cancel this talk of cancel culture, the article states “there are real problems that exist…. to know the difference look at the people who actually suffer when these cancel culture wars play out.  There are men and women who allege wrong doing at the risk of their own career. Those are the real victims.” This a problem that needs to be identified in cancel culture debate. To many people are are prioritizing the feelings of the person that is being called out rather than the person that is being oppressed. In Jacqui Higgins-Dailey, (2020, September 3). You need to calm down : You’re getting called out, not cancelled, Dailey explains “ When someone of a marginalized group says they are being harmed, we (the dominant group) say the harm wasn’t our intent. But impact and intent are not the same. When a person doesn’t consider the impact their beliefs, thoughts, words and actions have on a marginalized group, they continue to perpetuate the silencing of that group. Call-out culture is a tool. Ending call-out culture silences marginalized groups who have been censored far too long. The danger of cancel culture is refusing to take criticism. That is stifling debate. That is digging into a narrow world view”.

 

 

 

 

 

 

 

 

 

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