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Disconnect Between Companies' Understanding of Social Media and The Actions They Take

Social Media

October 26, 2012 -- There is a disconnect between companies’ understanding of social media – both the opportunities and the risks -- and the actions they are taking to apply it to their businesses, according to new research conducted by Stanford University’s Rock Center for Corporate Governance, the Center for Leadership Development and Research at the Stanford Graduate School of Business, and The Conference Board
More than 180 CEOs, senior executives and corporate directors of North American public and private companies across all major industries were surveyed on their knowledge of social media and their companies use of it. The authors state, “Unlike most surveys on social media, which rely on a demographic of mostly young practitioners, the survey sample included only representatives from the highest levels of their respective organizations, with the average age of survey respondents in the mid-50s.”
Key findings from What Do Corporate Directors and Senior Managers Know about Social Media?










“Companies appreciate the potential that social media can have to transform all aspects of their business: branding, reputation, communication, outreach, and identifying strategic risks,” says Professor David F. Larcker of the Stanford Graduate School of Business and lead author of the study. “They also realize the serious threats that it can pose. They’re just not doing very much about it.” 
View the report for the authors recommended steps in implementing a social media strategy that integrates with corporate strategy and risk management.

About: Results are based on a sample of 184 American and Canadian CEOs, senior executives, and external members of the board of directors surveyed between May and June 2012. Public and private companies across all major industries and revenues were surveyed. Two-thirds (67.8%) of the respondents were male, 32.2% female. Breakdown by age: 26.4% were age 50 and younger, 35.7% were ages 51 to 60 and 37.9% were age 61 and older.

Source: Stanford Graduate School of Business, 2012 Social Media Survey, accessed October 30, 2012.