Information technology and all communication efforts at public companies are a growing concern for directors
The world of ‘new media,’ as exemplified by WikiLeaks, has caught the attention of directors at public companies across the US who are now starting to take a new approach to digital communications that can affect the company’s corporate governance structure and reputation.
In the midst of the recent scandals, WikiLeaks founder Julian Assange declared that half of the documents that have been funneled to the organization are from corporations. As a result, directors have become more aware of the future threats this website might pose on their business.
Last week, the National Association of Corporate Directors (NACD), an organization that delivers insights to corporate board members, moved swiftly by hosting a class that involved 50 public company board members who shared their expertise on the necessary precautions with other directors. The selective class titled, ‘Director Professionalism-The Master Class,’ allowed directors to learn and develop innovative strategies that plague the boardroom today.
‘In a reflection of the new challenges that directors face, social media, security, and regulatory compliance requirements were among the key areas of focus…along with building value for key stakeholders,’ says the NACD.
On the issue of social media, the speakers recommended that directors integrate social media efforts into their communication practices that should ‘enable [them] to keep abreast of what customers are saying about the products and service provided by their respective companies,’ says the NACD.
Participants were urged to be vigilant regarding dissemination of information as government and corporate records appear to be ‘under attack,’ from services like WikiLeaks. Virgina Gambale, director of Jet Blue, urged directors to become more engaged with their company’s chief information officer and to ask penetrating questions about the status of IT strategy and security.
‘If the mind can create it, the mind can break it,’ she explains. ‘Directors must be aware of aggressive efforts by hackers and others to penetrate corporate information security defenses for nefarious reasons.’
Overall, the directors felt that websites like Wikileaks should not be seen as an immediate threat since social media can now allow directors to stay in- tune with customers. ‘[Social media] may now be as important a tool as other traditional methods of gauging customer opinion,’ the association says. ‘NACD advises directors to tune into social media to augment other methods of information gathering.’
