This paper presents an annotated bibliography of two peer-reviewed articles examining social media best practices from distinct perspectives. The first article, published in the Energy Law Journal, addresses the legal and regulatory challenges utilities face when engaging with social media, including employment discrimination risks, regulatory compliance, and liability mitigation strategies. The second article, from the Journal of Marketing, explores how companies can use "mere virtual presence" and supporter visibility strategies to influence brand evaluations and purchase intentions. Together, these sources highlight that while social media offers significant opportunities for both utilities and consumer brands, best practices remain evolving and require careful, informed management.
Social media presents both significant opportunities and considerable risks for organizations across industries. Two peer-reviewed articles — one from the Energy Law Journal and one from the Journal of Marketing — shed light on how companies and utilities can navigate these challenges through informed, carefully considered best practices.
Elefant, C. (2011). The power of social media: Legal issues and best practices for utilities engaging in social media. Energy Law Journal, 32(1), 1–20.
This peer-reviewed article in the Energy Law Journal points out that while utilities are beginning to use social media, there are several "daunting" concerns within the industry that should be heeded and understood (p. 11). First, management must ensure that workers are not abusing social media while on the job. Second, utilities must be certain that they do not "run afoul of affiliate codes of conduct, SEC regulation," and other applicable rules (Elefant, 2011). This is a thorough and current review of what utilities must understand about social media.
On page 6, the author points out that for years, critics of utilities — including customers — used social media to "vent frustration" over slow response times or other service issues. Now, however, utilities are using social media to promote initiatives such as "green power," to recruit talent, to publicize "smart grid" technology, and generally to deliver a positive message to a younger demographic (Elefant, 2011).
The legal and regulatory issues that utilities must follow are substantial, but Elefant asserts that by adopting "best practices," utilities can "inoculate themselves" against risks. For example, if a utility makes an offer to hire a person but rescinds it after noticing on her Facebook page that she is pregnant, does that violate pregnancy discrimination laws? Utilities must be very careful when they become involved with social media. Further, can a utility company base a hiring decision on information found on a social media profile? And can a utility give consideration to a person's social media profile when that profile reflects directly on an applicant's competence or judgment in relation to a potential position? These are critical questions that the article raises as utilities discover that social media is a valuable space to occupy. A utility should adopt "best practices" in social media in order to "minimize any risk of liability," Elefant explains (p. 16).
"How supporter visibility shapes brand perception"
"Evolving best practices across law and marketing"
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