Importance of Social Media Policy Development for Organizations

Running head: MANAGEMENT
Management
Name of the Student:
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MANAGEMENT
Memo
Sunshine 100
Date: January 11, 2019
To: Management of sunshine 100
From: Jane Wilson
Subject: Importance of social media policy development
Introduction
Development of a social media policy is highly important due to the following aspects.
Potential advantages and disadvantages for an organization when using social media
The advantages of using social media are:
 Cost effectiveness: using social media for advertisement purpose can reduce the
traditional marketing cost. The cost of maintaining a social media is much cheaper than
opting for conventional marketing (Borgatti, Everett and Johnson 2018).
 Brand awareness and brand reputation: it is beneficial for reaching out to a wider and
international audience in a much convenience method and thus, helps in increasing brand
awareness and brand reputation.
 Website traffic: It helps in increasing the traffic to the company website, which helps in
increasing awareness as well as popularity of the brand.

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MANAGEMENT
 Greater access to international market: Social media helps to reach out to an
international audience in a much convenient manner (Turban et al. 2017).
 Easier market research: Social media helps in conducting extensive market research.
The consumer feedback is easier to track and public announcements are easy to make.
Disadvantages of social media are:
 Security: sometimes the social media platforms have led to data breaching, hacking and
privacy issues, which can be a threat for the companies (Borgatti, Everett and Johnson
2018).
 Legal violations: privacy violations, discriminations are common issues when social
media is used in the workplace.
 Potential productivity loss: in many cases, the employees spend a substantial amount of
time on the social media for personal reasons and that hampers their as well as
organizational productivity loss (Turban et al. 2017).
 Difficulty in the evaluation of feedback: many times, the feedback on social media does
not reflect the sales on store, and then the social media marketing becomes ineffective.
 Additional resources: many times the organization needs to employ additional resources
to handle their social media account. It needs regular monitoring. These additional
manpower incur more cost.
Impact of employee behavior or comments on the brand reputation on social media
As the social media account of any organization is open to public, hence, a broad
audience can follow the company profile and can stay updated about the company activities on a
regular basis. Thus, company reputation is affected by the social media activity. Since, it is an