Have You Noticed How Much Risk Lusaka Stock Exchange Listed Companies Are Exposed To In Social Media Today?

Let me ask you a few questions that will help you determine how much Zambian listed companies are exposed to the treacherous risks and power in social media, but before I do that , listed here are major US corporations which have recently succumbed to the rising influence of social media;

 Dell Computers-dissatisfied customer’s blog posts populary known as “Dell Hell” has resulted in eventual introduction of direct2dell corporate blog.

 AOL-a negative customer service experience recorded and audio podcast spreading like wild fire doing great damage to reputation.

 Kryptonite Locks- a customer’s Youtube video demonstration of poor quality of it’s bicycle lock product that resulted in over $10 million in replacements.

 Apple Computers- investors lost billions as a result of its share price drop following a blogpost on engadget.com.

 Accoona Search Engine and Electronics Retailer- Founder Marc Russou paid bloggers in support of his innocence in a previous stock fraud case where he had pled guilty. The blog posts are being considered to have violated the quiet Period required by the United States SEC before and after an IPO. No official ruling has been made, but the possibility certainly exists, for Accoona’s IPO to be suspended or terminated.

This list continues to grow everyday, So now can l ask you the following…

1. Do Zambian listed companies have a social media usage policy for employees that is not just for internal purposes but covers private blogging outside working hours on social networking sites such as Wikipedia, Lusakatimes.com, Youtube.com, Facebook.com, myspace.com etc. Have Zambian companies left it up to employees to set their own blogging policy? With today’s workforce that’s more computer and internet literate than at any other time in the history of Zambia, a clearly defined social media usage policy can guide employees from going too far over the line. Certain company information should not be discussed on blogosphere. It may be inappropriate or illegal. When an employee makes a statement on blogosphere it can spread like wild fire. A social media Usage policy to govern, manage risk and ensure compliance makes it clear what is acceptable and was in not.

2. Do Zambian listed companies monitor discussions / conversations about the companies’ key personnel, products, company information, investors etc. in social media using free monitoring tools such as Google Alert and Technorati services to get notified in real time when it is mentioned.

3. Do Zambian listed companies identify and analyse specifically mentions with positive or negative comments? Identifying the level of influence of the blogger in such cases is critical to determine action to take in order to mitigate any damage that may be caused from someone posting wrong information.

4. Do Zambian listed companies monitor for stakeholder complaint discussion or conversations on blogosphere to know the quality of relationship experienced by stakeholders eg customers, suppliers, investors etc.? Identifying quality of service or product defects early in the process can ultimately save Zambian companies’ money, and reputation.

5. Do Zambian listed companies monitor for discussions of intellectual property and confidential information. It can be dangerous when wrong info is posted. Documented\confidential information, salary and compensation information, usernames and passwords, non-public financial results or reports, pre-patent publications and secret formulas must be safeguarded.

6. Do Zambian listed companies perform analysis to gain business value from content about Zambian companies in blogosphere monitoring how posts are changing on blogosphere week to week, month to month compared to competition.

7. Do Zambian listed companies investigate specific blog posts specifically what it’s most influential bloggers know or don’t know about Zambian companies. This can be a less costly but equally effective form of focus group analysis as bloggers are by their independence able to distribute news faster than bureaucratic mainstream media.

 8. Do Zambian listed companies have a dedicated team or person responsible for informing relevant departments on blogosphere activities as well as reacting and conducting damage control if necessary. A compliance team or officer should Know if any info discussed could be considered controversial or in bad taste or violate company social media policy or security and exchange commission (SEC) rules and regulations. Zambian listed companies could be unnecessarily be exposed to litigation, fines or damage to reputation.

9. Do Zambian listed companies taken action to have blog posts removed deleted by the publishers’ where a scandalous post is discovered? If any blogger affiliated with the company posts a comment on blogosphere against company policy have Zambian companies asked the individual to remove the post? Where posts are discovered to applaud or chastise Zambian companies has the blogger been contacted to hear more about their compliments and how the company can improve?

10. Do Zambian listed companies know if they have lost confidential information via social media? Over 50% of company’s do not know if they have. In addition less than 9% have policies pertaining to social media usage to ensure proper governance, risk management and compliance.

 

In the next post I will uncover a number of Zambian companies looking to list on the Lusaka Stock Exchange (LuSE) as they are exposed to the social media risk.