Risk managers, are you embracing Google+ or concerned about it? From a legal perspective, we recommend both considerations. The growth in social networking and various exchanges among users has been enhanced with the introduction of Google+. More than 25 million users are already estimated to utilize Google+ in connecting; sharing thoughts, links and photos; and conversing via video chat.
Google+ also introduces the concept of “Circles” of people. Not all people or friends are treated alike in your Google+ network. You may choose to share different information with different people in your Circles. So for example, you can use Circles to separate family, friends and work colleagues into separate social networks.
All this enhanced social connection and networking online, and the ease in which information can be shared, presents both opportunities and challenges to the organization and its risk management officers. The differences among organizations and risk managers dealing with the issues imposed by Google+ will be how the organization embraces and educates its employees about the manner in which it intends to monitor, supervise and encourage the use of Google+ while still protecting against various legal concerns arising from the use of Google+.
There are several challenges imposed to an organization from the use of Google+ by its employees and other stakeholders. Those challenges are likely to be enhanced by the increasing scope and ease of use of social networking, the attention provided to those issues in the media and the large damages and scrutiny imposed by the courts and governmental agencies enforcing them. Risk managers will play an important role in managing those challenges, including:
1. Privacy Concerns
Users of Google+ may be tempted to share private and confidential information pertaining to the workplace by assuming work-related Circles are totally private and secure and that information may be shared only among those in the Circle and those who were designated to receive it. This can turn out to be a false assumption. Those who receive information within a Circle may be technically permitted to further distribute confidential information to others.
Security breaches, which the organization does not control in Google+, may further create an opportunity for misuse of private and confidential information. Social networks like Google+ also provide an enhanced conduit for social engineering efforts by hackers to obtain network access and proprietary information. The search enhancement and function in Google+ can deepen that concern and ability to reach specific information by a searcher that should otherwise not be disclosed outside the organization.
2. Intellectual Property Issues
Trade secrets, business ideas, initiatives, know-how and potential inventions may slip out through open discussions on Google+ absent appropriate education of employees about the potential hazards to the organization stemming from open discussions on Google+. Given the transition to a first-to-file priority system under the recently enacted American Invents Act, maintaining confidentiality of patentable technology is more critical now then ever.
3. Employment Issues
Organizations may be exposed to litigation risks arising from employees at various positions sharing thoughts and opinions freely in an environment they feel is loose and secure but may turn out to be otherwise.
4. Litigation Concerns
The reach of e-discovery and the ability to reach, search and require disclosure of information in social networks and electronic devices have been extended in recent years. No information shared can be assumed to be beyond the reach of a plaintiff seeking evidence, and a corporation can be penalized for failing to preserve electronic evidence through a litigation hold procedure.
5. Regulatory Concerns
Managing information of a company and having appropriate protocols and systems are often examined under various regulations depending on the industry involved, such as the financial industry, public company regulations and others. Failure to provide appropriate safe guards and policies and enforcing those within the organizations exposes the organizations to serious violations, loss of goodwill and investigations by state and federal authorities.
Managing Google+
The risks associated with Google+, though, can be turned into an opportunity if managed appropriately. Clear policies, enforcing policies and educating employees about the risks and opportunities are keys for any successful risk management program, and particularly with social networking challenges imposed by solutions such as Google+. The ease of spreading information via Circles and the potential quickly reach of word-of-mouth viral discussions open opportunities to organizations that can educate their employees about the potential positive uses of Google+. Management and marketing teams can utilize that tool with the supervision of risk management to share, encourage discussions and create a buzz and excitement about matters that the organization cares about.
Risk managers should embrace the growth of Google+ along with other social networking tools and communications. Many organizations supplement their outreach efforts successfully by utilizing Google+ and other tools to expand their message and reach targeted and broad audiences. It is extremely likely that people in your organization are utilizing those tools already, and if not, they will likely do so in the near future. If the organization is clear about the policies of use, enforce them when violated, educate and encourage authorized use, it will have a competitive advantage to position itself for successfully controlling and embracing the new trends of social networking.
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About the Author
Gil Breiman is a partner in the corporate practice group of Burns & Levinson LLP. He represents domestic and foreign corporations, investors and boards of directors in various business matters, corporate governance, mergers and acquisitions, financing and their global expansions.
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