Social networking and the risk to companies and institutions

Social networks open up new business opportunities for customer acquisition and retention, facilitate knowledge transfer within the company, and can positively influence work climate, but they can also quickly destroy a company image, thus significantly increasing company exposure to online break-ins.

Abstract

Social networks open up new business opportunities for customer acquisition and retention, facilitate knowledge transfer within the company, and can positively influence work climate. However, they can also quickly destroy a company image that took years to build, while the use of social networks at work not only risks a loss in productivity but may also undermine legal obligations. Eager networkers might also divulge company internals to competitors or the public at large. And last but not least, "friendships" open up completely new attack vectors for professional hackers, thus significantly increasing company exposure to online break-ins. This article briefly summarizes the opportunities and dangers that this development poses for business. This contribution is based on an earlier article by the same authors (in German) (Langheinrich and Karjoth, 2010).