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"Why the increasing business use of social media by business? Social media offers immense potential for marketing, image-making, advertising, public relations efforts, customer relations, investor relations and a variety of other positive, beneficial activities.  But it also carries potential risks, a caveat perfectly illustrated by the Hastings case. The risks of social media are in some, but not all respects, similar to those of print media.  But not all libel laws apply-issues of malice and negligence have not been definitively decided in the courts. Insider trading issues, however, are clear.  The transmission via social media of insider information about a publicly traded company is illegal. Using Facebook, Twitter, Pinterest or private blogs to transmit insider information to large numbers of people is a violation of law."

I wrote about how NBC has handled Keith Olbermann's departure from his show on MSNBC. Writing that story put me in mind of one of the hoary chestnuts of public relations strategy, which is to let sleeping dogs lie for some situations. Veteran PR folks are fond of refering to a minor flap as a "one-day story," meaning that you read about it in the newspaper today, but it disappears tomorrow. Unfortunately, the Internet has forever ended the technique of letting the storm blow over.

If your organization fails to invest in socially responsible measures, or even if anything about your business - such as a faked viral marketing campaign - is perceived to be phony, you will be found out. You will be tweeted about, and a Facebook Causes group will be created against you. As many corporate casualties have discovered, the result of such a campaign can be catastrophic to your firm's reputation and ultimately to its bottom line. Therefore, to avoid a public relations or financial disaster, integrity needs to be part of the DNA of every organization - not just to secure a healthy business environment, but for the organization's own sustainability and competitive advantage. It's worth noting here that I believe the word "integrity" is preferable to the expression "corporate social responsibility," as the latter puts too much emphasis on the notion that corporations should do "good" in the world and be "good" citizens out of some moral or ethical imperative. Of course, that is absolutely true. But what's new - and what organizations need to focus on - is the idea of integrity, as driven by transparency. Without it you cannot build trust, and trust is essential for competitiveness in this new environment. To put it bluntly, regardless of the moral arguments, there are now some hard, bottom-line business reasons for baking integrity into every company.

"Pathbreaking research by a group of scholars including Eric A. von Hippel, a professor of technological innovation at M.I.T.'s Sloan School of Management, suggests that the traditional division of labor between innovators and customers is breaking down. Financed by the British government, Mr. von Hippel and his colleagues last year completed the first representative large-scale survey of consumer innovation ever conducted. What the team discovered, described in a paper that is under review for publication, was that the amount of money individual consumers spent making and improving products was more than twice as large as the amount spent by all British firms combined on product research and development over a three-year period. "We've been missing the dark matter of innovation," Mr. von Hippel said from his office in Cambridge, Mass. "This is a new pattern for how innovations come about." "

von Hippel and Baldwin also produced a related, intriguing paper in 2009 that can be found here http://hbswk.hbs.edu/item/6325.html entitled "Modeling a Paradigm Shift: From Producer Innovation to User and Open Collaborative Innovation." The conclusion of the paper reads: "We conclude by observing again that we belive we are in the midst of a major paradigm shift: technological trends are causing a change in the way innovation gets done in advanced market economies. As design and communication costs exogenously decline, single user and open collaborative innovation models will be viable for a steadily wider range of design. They will present an increasing challenge to the traditional paradigm of producer-based design - but, when open, they are good for social welfare and should be encouraged."

Spoof site, or headline grabbing awareness campaign?  Whatever it is, Shell and Greenpeace are fast becoming a Twitter trend today. The bogus Arctic Ready web site, has been inviting crowdsourced headlines for its 'Shell in the Arctic' 'campaign'.  The associated Twitter account @arcticready claims to be committed to clean and safe Arctic energy. Contributors are invited to add captions to images of the Arctic.