Social media now plays a substantial role in the modern business world and companies have been quick to enhance their use of the various social media platforms now available in attempts to reach a much wider consumer base.
It is an efficient and affordable form of marketing, giving a company the ability to communicate with its stakeholders in a fresh and forward thinking way.
However, companies must tread carefully when utilising social media to enhance their online presence and its use must be carefully monitored. Even personal use by individuals connected with the company can impact dramatically on consumer perception of the company. Ensuring employees maintain a professional online persona is paramount to a modern company.
Effective monitoring of social media is a key consideration for any company that is aiming to preserve its positive public image. However, the consequences of inadequate social media procedures for AIM companies in the UK are even graver.
Regulatory requirements
The AIM team at the London Stock Exchange has issued guidance which outlines the importance of considering the interaction of social media with a company’s disclosure requirements under the AIM Rules for Companies. The guidance suggested that the increase in the use of social media to post instantaneous updates, following an event having taken place within the company, could lead to a breach of these governing rules.