Social Media and Reputation Risk

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Social Media and Reputation Risk
Anneke Zwart, Student (University), Netherlands, Moderator
Despite of the many advantages that social media can have for organizations - facilitated searching, open participation, networking, dialogue and a increased mobility in terms of information flows - these same dynamics also increase risks. Organizations are not able to manage or control the contents of social media.
Aula (2010) argues that one of the main risks of social media is reputation risk, which means the risk of losing reputation.
Reputation risk can be harmful for organizations by increasing competitiveness, problems with positioning, decreasing stakeholders’ trust and loyalty, and by damaged media relations.

In general, there are three situations or ways in which reputation risk can increase, according to Eccless (2007):
1. When the gap between reputation and reality of an organization increases.
2. When customer’s expectations change.
3. When an organization cannot eff...



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