Roadmap for Social Media in a Regulated Industry

Regulated industries like banking, energy, telecom, and healthcare face huge hurdles integrating social media into their operations. Concerns about privacy, accounting, and legal compliance set up a potential wrestling match between competing corporate departments.

Yesterday, I had the pleasure of hosting a #socialmedia Twitter chat on Social Media and Regulated Industries. The transcript could be a roadmap to guide regulated companies through the tricky adoption of a social media program. Here are some highlights:

Social Media Stakeholders in a Regulated Industry

• I work in the insurance biz — compliance is the key internal stakeholder. Brand management and legal next in line. ~@billfromsc
• Our risk teams WANT to be involved. They suffer from an unfair stigma sometimes. ~@KenBurbary
• Stigma against regulatory compliance teams (perception they are anti-business, anti-innovation) is an opportunity for social media strategists to be a bridge — invite them to be involved! ~@ScottHepburn
• You have to get executives involved early and often. People fear what they don’t know/understand. ~@JasonBreed

Who “Owns” Social Media in a Regulated Industry?

• Should you train compliance staff on social media or train social media users on compliance? ~@elhoust
• Starting out, you might have to limit involvement to a few people. Let company see examples first hand, then broaden involvement. ~@JasonBreed
• A temporary period of monitoring and critique…helps find mavens then use them to mobilize. ~@The_Real_Atom
• We primarily use one/two people to speak for the brand…gGuideline docs/suggestions for everyone else (other employees). ~@TomMartin

Social Media Strategy vs. Social Media Policy

• I think a company needs both a social media strategy and a social media dos/don’ts for their company. ~@The_Real_Atom
• Compliance is tasked not only with do’s and don’ts, but also tracking, cataloging, and filing for possible government inspection. ~@wvpmc
• Do social media tools need to provide easier archiving and digital paper trails for the sake of regulatory compliance? ~@ScottHepburn
• Policies rule in a compliant environment. Perhaps the construction of these social media policies will ease execs minds to adopt ~@ShannonPalmer

Executing Social Media in a Regulatory Environment

• For regulated industries, triple the time [it takes to execute a social media program] to get through the compliance hurdles. ~@KenBurbary
• Stay away from the regulated side of your business. Build a following around your cause. Get ideas for new blockbuster products ~@JasonBreed
• Opportunities don’t just exist with external markets. Perhaps regulated businesses could focus on internal social media — social media as a collaboration tool ~@ShannonPalmer
• The first step would be to be extra familiar with government policies and to train SocMe employees in code of conduct. ~@MBerman1

Challenges

• I already have a hard enough time finding people that holistically understand social media, and now you want them to understand legal? ~@Marc_Meyer
• Sometimes “legal” in companies changes almost as often as social media tools! ~@elhoust
• Will regulated industries be the last to join the social media party ~@Marc_Meyer

Closing Thoughts

• While social media marketing and customer support are important, the hard work comes in laying the foundation. Stakeholder participation, legal/regulatory issues, hiring, internal education, training and resources must be addressed first. Seek social media consultants who can manage competing agendas in addition to building a social media platform.
• True, social media policies and procedures ease executives’ minds. But regulatory compliance is an institutional culture; it transcends policy. A culture of compliance is nurtured throughout an enterprise, from HR to the C-Suite.  For social media to succeed in regulated industries, social business must be embraced as a culture in the same way.
• A social media culture (responsiveness, accessibility, authenticity, collaboration) and a compliance culture (privacy, security, accountability) are not mutually exclusive. Done well, the two weave together and strengthen each other.
• Social media should not be exclusively for the corporate communication team. Involving stakeholders early earns buy in and energizes them to participate when the social media program comes to life. Give employees the tools, train and coach them, and they’ll improve your business.

Additional Resources

Bookmarked articles/posts about social media in a regulated business

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