“It is a new
world and a new society in which social activists, sophisticated and
experienced, are demanding that companies exhibit new forms of behavior’” states
Heather Pavitt in a paper published in 2012 (Pavitt H., 2012)
She goes on
to state, “People have an expectation that organizations must be accountable
for all of their business practices that may impact others.” (Pavitt H., 2012)
Research has shown that businesses are more transparent and
accountable than ever before, but why?
Because the power is now in the hands of the consumer to call for action
when they observe serious improprieties and incongruence. Below is a link to one of our co-founders,
Matt Fuller’s e-portfolio site. Matt
Fuller has recently completed a research project examining just how impactful
social media has become.
What has been discovered is that data and analytics are
allowing businesses to better track purchasing patterns and execute targeted
marketing. The argument now emerging
involves data consumption, how to secure it and the complications disseminating
the analytics into useful metrics with measureable business improvements.
So much data is infiltrating company walls that companies
are struggling with dissecting it into useful metrics while it is still
relevant. While these efforts can be
beneficial to consumers and stakeholders, it can also be dangerous if not
protected adequately.
While metric targeted marketing is assisting companies in
being profit efficient, it has also proliferated ratings through social media
and in return placed the power back into the hands of the consumers and the
public. Such was the case with BP in the
Gulf Oil Spill in 2010, where they were caught manipulating photos of the oil
spill undermining public trust and providing serious incongruence between their
mission and values and their actions. (Pavitt H., 2012)
There are many cases and research to support the fact that
social media is helping the public have a voice. This is a similar mission we strive for at
KeneXsus, only we are focused on financial transactions. We believe in assisting and educating the
public about complex financial products before obtaining them, while in return
giving them the opportunity to share those experiences. To share them with other constituents and the
public along with the companies they do business with.
So why should we share good and bad business
experiences? We must first understand
that businesses are profit centers that operate under one common rule, to make
a profit for their owners and shareholders.
This certainly does not mean they get a free pass to pursue profits at
the expense of the consumer or their stakeholders. But, if no one were holding them accountable,
then why would they change? It is up to
each of us to talk about good and bad experiences because we help each other
avoid being taken advantage of.
Moreover, we assist the companies “doing it right” to be graced with our
business and the ones who are not, to be more accountable. In the end, we can collectively assist these
businesses in changing bad behaviors while being more accountable and congruent
with their mission and values.
Research shows us that social media does have a positive
impact on transparency and accountability.
Social media, similar to our KeneXware rating system, may change
behaviors but it may simply prevent bad ones from occurring. Either option is a win for the consumer and a
win for the businesses who are playing fair and responsibly. Subsequently, any company behaving badly is just
not going to last given the plethora of social network options for ratings and
rankings. This in turn, creates business
accountability and transparency.
Please click this link Consumers
Influence on Business to read the entire body of research and learn more
about this topic. The research presented
is compelling and is a good read for anyone, especially those exploring social
media strategic planning. The paper also
cites several resources that break down simple plans to create winning social
media strategies. Oh yes, two things,
please like our FB Page and subscribe to our blog as we continue our mission to
bring you relevant educational information about the products and people you do
business with everyday.
The KeneXsus Team
References
Pavitt, H. (2012). No Place to Hide: New
technological advances in Web 2.0 and Social Media may force organizations to
improve their corporate social responsibility. Social Alternatives, 31(2),
22-26.
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