“Companies will find themselves more and more at the mercy of the waves of the public that uses social media to voice their thoughts on them.”
With the steady rise of social media, the balance of power in the corporate world is shifting. “In the past the large companies dictated the market,” says the legal counsel. Through social media, companies find themselves more and more subject to public opinion. The corporate world has begun voicing its concerns regarding the negative side of this development: “Without some form of regulation it will not be possible to prevent major damage to both the companies and the people that work for them.”
New voices to be reckoned with
“Our company was severely hit by the financial crisis,” explains the legal counsel. This was the case for many companies, but now the rise of social media is proving to be another threat in these financially difficult times: “We were faced with a shift in the public opinion. Overnight, we changed from a reliable household name into corporate villains. While the role that some of the companies played in the crisis was the root of the criticism, it was social media that facilitated the spread of the criticism and impact that it generated.”
Over the past years, social media has made a seemingly permanent foothold into daily life. “The volatility of public opinion and the new power relations between large companies and consumers, who – by blogging and twittering – have a stronger voice than before, is a new voice to be reckoned with.”
Potential perils of social media
“While I welcome the trend in which companies increasingly need to answer for their deeds,” explains the legal counsel, “it is currently virtually impossible to shield a company from libel through these communication technologies.” This downside of social media is concerning to many: “Every individual with a connection to the internet can start a smear campaign based on nothing but a grudge. What must be clear is that not only the boardrooms are effected; it is the workers who are losing jobs.”
According to the legal counsel, “the fact that individuals have become powerful actors in this globalized world needs rethinking. Individual states are powerless in this regard. Global efforts, both by business and governmental organizations are needed to influence and regulate these forms of human behavior, to protect the interests of companies.”
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