Benefits of Social CEO


T-Mobile Australia stepped into deep trouble while replying to the user on twitter who asked if it stores passwords in clear format. The answer ‘yes’ caused a huge security threat. The company had to change its password as well as policy. For a big company it is a big threat. T- Mobile won’t be able to find how one customer has caused trouble but it shouldn’t be repeated again.

Everything has its  pros and cons. You just can’t say it is free of fault. You have to deal with social media’s positive as well as negative aspects . The importance of social media outweighs its negative aspects. Twitter, Facebook, youtube efficiency depends upon how one uses it. Using them efficiently can connect you to the whole world in just one tap. Company’s connectivity should be upto that point, where people are present and that can be possible through social networking sites.

Many CEOs feel that social media is just a trend or craze and everything that is available on social sites is debris. But it is not. If you are not  on social media you are behind today’s demand and it can be a big loss to your company.

Till 1980 or 1985, business was about  marketing through television, CD, VCR, console. There was no computer. By 1990, the internet started gaining popularity. E-commerce started coming into a frame. Access of data becomes so easy that even data is not organized, still you can locate it. It helped a lot to the company CEO sitting far from headquarters. Also as the number of branches increases, so does data and handling them can be a big trouble.

Effect of social media on companies CEO

The Internet made everything available on a finger tip without restriction of time and place for CEO. E-commerce is a complementary  store of a main channel. It has diversified our reach. It has become the centre of everything. Whether you seek information, want any service or any kind of help. Even at the time of the great recession, people surfed the internet to get best out of any deal. To buy electronic goods at a reasonable price people usually prefer online mode. It has become a basic amenity just like electricity. Many CEOs have said that they find social networking  sites not just interesting but strategically highly relevant. Many employees find it easier to converse over social media than face to face with their boss. They reveal themselves more easily over social sites. Like one employee posted on his social site which is visible to everyone in the company including his boss ‘ last night I drove while drinking’. Interesting right ?

Even CEOs find social media fascinating. Gradually they are also getting used to how to share their mind. How to make their twitter account more interesting. They must speak their mind as their account is visible to their employees also. It is not necessary that ceo should speak or write something deep only, it can be interesting like making coffee and playing carom.

Twitter facebook has customised the news so much that one can see the news of their interest. Going through newspapers is ok but social sites help you to diversify like reaching your customers, getting their reviews, overall help in improving the service. It takes you to new places, new publications. It can be a supplement to your newspapers.

The CEO of Berkshire Hathaway shared his  experience, how social media provides him moments of serendipity. He exchanged email back and forth through twitter with employees at Botswana at one of its branches. One employee at that branch shared her experience how her fellow employees helped her to connect to her children living elsewhere in America. It shows how connectivity that Berkshire Hathway provided, helps people in real life. Without twitter, CEO of Berkshire has  never connected with his employees.

CEO needs to make policy, where employees of the company are bound to follow it for the company’s image  and its security. There was an incident of AT&T company, where an employee of AT&T made fun of his own company’s brand and someone has made its video and uploaded it. By the time the company took action it was seen by millions. The CEO suspended the employee but this is not a solution. Proper guidelines need to be there which is abided by all the  members of the company. When a ceo is posting something, they have responsibility for the whole company as he or she is representing the company.

Way forward 

Questions were asked from the company about how they are going to monetize their social networking site, but the right question will be how the company will deepen their relationship with customers. So, we can say that ceo on social media can work more effectively  by uploading their exciting personal and professional life. They can share their impression about any stores they visit, how pleased they are with their employees and things they care about. Social media is today’s reality and to be in a race company’s CEO needs to be active.


Author: A.C.

Dr. Chakraborty is a researcher in electronics and has authored numerous articles in the domain. She is also an avid blogger and shares a penchant for domains like technology, business and science.

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