Impact of Government Regulations on Global Social Media Firms

This report analyzes the impact of government regulations on social media firms within the global business environment, specifically focusing on the risks faced by companies like Facebook and Instagram due to changes in UK government policies. It examines the effects of regulations related to data protection and privacy, employee rights, disclosure and third-party endorsements, and governance and oversight. The report highlights potential penalties and service blocks as significant threats and emphasizes the importance of compliance for long-term business sustainability. It also touches upon the influence of economic policies, such as those of Trump, on foreign economies and emerging markets' opportunities for global expansion. The study concludes by suggesting that social media firms adhere to all guidelines and laws to maintain a strong presence in the global market.

Global Business Environment

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
1. Identification of the risk faced by social media firm due to changes in government
regulations...................................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
The changes in factors of external business environment of sovereign country can have
direct effect on the business decisions of an organisation. For instance, the government in UK
has introduced new legislations for related to social media considering its impact on mental
health of people. Changes in General data protection regulation has highly influenced the
business operations of social media firm such as Facebook etc.
The report have focus on identifying the risk to social media firm such as Facebook,
Instagram due to changes in government regulations. Study also emphasizes on Trump’s
approach to economic policy impacts upon foreign economies. It will also include interpretation
of the way emerging economies are presenting opportunities for global expansion for businesses.
MAIN BODY
1. Identification of the risk faced by social media firm due to changes in government regulations
In context of UK, government has implemented some measures in order to regulate the
social media organisations such as Facebook, Instagram and twitter over harmful content. The
risk which Facebook, Instagram and twitter is facing due to the changes in laws is threat of high
penalties and block of services (Soundararajan, Spence and Rees, 2018.). If social media
organisations fails to comply with legislation , it can have adverse effect on the business
sustainability of enterprises. There are basically different laws and regulations which are
designed by government in order to control the activities of social media firm these are related to
:
Data protection and privacy : It covers the rights of consumers related to privacy. For instance,
General data protection is the regulation which social media firms such as Facebook, Instagram
and twitter are required to follow while collecting, storing and utilising the data on social media.
It is the regulation which might force firm to bring improvement in business Policiews as well
as strategies.
Employees right : It mainly dictates the way social media organisation can develop policies. For
example, National labour relation act provides the guidelines related to extend up to which
employer can monitor the activities of workers. It is the national labour relation act which might
force social media firms such as Facebook, twitter and Instagram to change their rules.

Disclosure and third party endorsement: It includes the proper protocols which social media
firms are required to follow during the time of marketing of products, disclosure of corporate
financial information. In context of social media firm such as Facebook, twitter and Instagram
need to comply with .COM Disclosures Guidance. It is the guidelines which are designed by
government in order to ensure clear as well as conspicuous social media features. It is the
regulation which might force firm to bring improvement in business practices (Campbell, Martin
and Fabos, 2018).
Governance and oversight: It is the regulation which is implemented by UK government which
requires social media firm such as Twitter, Facebook and Instagram to establish proper
procedures controls, and monitoring for worker business use of social media. For instance, Social
media consumer compliance risk management guidelines.
CONCLUSION
It has been concluded from the above that the changes in laws have great influence on
the business practices and policies of social media firm. The other fact which has been
discovered from the study is that the high penalties and block of services are two main risk faced
by social media organisation due to changes in regulation by government in the nation.
It has been suggested that the social media firm should follow all the guidelines and laws
as it will help them in maintaining long term business sustainability in global market.

REFERENCES
Books and Journals:
Soundararajan, V., Spence, L.J. and Rees, C., 2018. Small business and social irresponsibility in
developing countries: Working conditions and “evasion” institutional work. Business &
Society, 57(7), pp.1301-1336.
Campbell, R., Martin, C. and Fabos, B., 2018. Media essentials: A brief introduction.
Bedford/St. Martin's.
Ocasio, W., Laamanen, T. and Vaara, E., 2018. Communication and attention dynamics: An
attention‐based view of strategic change. Strategic Management Journal, 39(1), pp.155-
167.

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