Reputational Risk of Social Networks Is a Burgeoning Boardroom Topic, According to...

Reputational Risk of Social Networks Is a Burgeoning Boardroom Topic,
According to Deloitte's 2009 Ethics & Workplace Survey

NEW YORK, Aug. 17 /PRNewswire/ -- According to additional findings from the
third annual Deloitte LLP Ethics & Workplace survey, 58 percent of executives
agree that the reputational risk of social networking should be a boardroom
issue. However, only 15 percent of the respondents say that it is being
discussed at this level.

"Online social networking presents a range of challenges and opportunities for
most organizations," said Sharon Allen, chairman of Deloitte LLP. "Activity in
these online communities can have an extraordinary and far reaching impact.
That's why it is important that the potential reputational risks associated
with sites like Facebook, Twitter and YouTube become an agenda item in today's
boardrooms."

The majority (65 percent) of those executives who agree that the reputational
risks of social networking should be a boardroom issue also say that they use
social networking to build their company's brand. Only 27 percent of
executives say that they regularly discuss how to leverage these sites while
at the same time mitigating the risks involved.

Allen continued, "Though social networks can be used to build business, they
can also prove to be detrimental to brands. Setting usage guidelines as well
as establishing a values-based ethical culture are among the steps leadership
can take to encourage employees to make good decisions online."

The complete results of the 2009 Ethics & Workplace survey reflect opinions of
employees and business executives on questions on ethics, work-life balance,
reputational risk and the prevalence of boardroom participation as it relates
to increased employee social networking.

Methodology
Opinion Research conducted a telephone survey on behalf of Deloitte LLP among
a national probability sample of 2,008 employed adults comprising 1,000 men
and 1,008 women 18 years of age and older, living in private households in the
continental United States. Interviewing for these CARAVAN(R) Surveys was
completed during the period April 9-13 and 16-19, 2009. Sampling error is +/-
2.5 percent.

Opinion Research also conducted an online survey of 500 business executives.
The sample for the study came from a panel of executives across the United
States, including company owners, directors, CEO's, controllers, EVPs, CIOs,
VPs and board members. Invitations to participate in the study were sent
beginning on April 10, 2009 and data collection continued through April 17,
2009.

About the Deloitte Chairman's Survey
The Deloitte LLP Chairman's survey is designed to measure workplace behavior
and the impact leadership has on the workplace environment. Following up on
last year's survey, which uncovered a link between transparency of leadership
and employee productivity, this year's survey studied the impact of use of
social networking on reputational risk, workplace ethics, and career-life fit.
Sharon Allen, Chairman of the Board, Deloitte LLP, is the sponsor of the
annual survey.

About Deloitte
As used in this document, "Deloitte" means Deloitte LLP and Deloitte Services
LP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a
detailed description of the legal structure of Deloitte LLP and its
subsidiaries.

SOURCE Deloitte LLP

Dana Fields Muldrow, Public Relations, Deloitte, +1-212-492-3875,
dmuldrow@deloitte.com; or Sanuber Bilguvar, Public Relations, MWW Group,
+1-212-827-3764, sbilguvar@mww.com