How Social Media Will Improve Corporate Governance

How is social media changing the way that CEOs and corporations are applying commendable corporate governance to the way they run their companies? The jury is still out on how, but there have been a few notable examples of how social media has affected corporate responsibility. The NWC the National Whistleblowers Center is now on Twitter, Facebook and YouTube at www.whistleblowers.org

In December, cameras caught the FAA spending $5 Million for 3600 party goers and the story re-told on social media networks.

This means that the public is in an unprecedented position to help whistleblowers and force the corporate hand. After all, when else in history has a single person had the power to reach millions of people with a single blog posting or YouTube video?

Bill George wrote a book in 2004 called Authentic Leadership: Rediscovering the Secrets to Creating Lasting Value. Though this book was very valuable at the time, it is also rings very true as social media becomes more main stream. Mr. George writes, “Somewhere along the way we lost sight of the imperative of selecting leaders that create healthy corporations for the long term.”

As we enter 2010, there are more people than ever with the power of the social media pen watching companies for both the positive aspects as well as the negatives. Companies no longer can hide behind the curtain and must answer to the public.

One lesson for any company is that there must be full buy-in from the CEO and every employee once a social media strategy is implemented. Companies must be ready to answer the bell during good times as well as a crisis situation that may arise.