The editorial viewpoints expressed are not necessarily reflective of the opinions or position of Cassidy & Associates or of the individuals employed by Cassidy & Associates.
However, State also have a very aggressive outward facing effort going across several social media platforms which was very active during the relief efforts in Haiti.
The guidance in Regulatory Notice 10-06, which is presented in Q&A format, clarifies the responsibilities of firms to supervise the use of social networking sites to ensure that recommendations are suitable and their customers are not misled. The Notice also addresses the recordkeeping and other responsibilities of firms.
In issuing the guidance, FINRA cites the widespread use of social media:
According to a recent report by the Pew Internet and American Life Project, 46 percent of American adults who use the Internet logged onto a social networking site in 2009, which is up from8 percent in 2005. Other studies have shown that use of socialmedia sites by businesses to communicate with customers and the public has grown significantly in the past few years.
We’ve just confirmed that the Red Cross has already raised more than $800,000 for Haiti through their $10 text message donation initiative (text “Haiti” to 90999), which is backed by the United States State Department.
I recently saw Laura present on the use of new media tools at a U.S. Chamber seminar, and she did a great job outlining how the Red Cross is really using social media tools in creative ways. This effort is another success story.
In a piece over at Foreign Policy.com, Senator Richard Lugar, the senior Republican on the Senate Foreign Relations Committees offers his strong support for Secretary of State Hillary Clinton’s efforts to utilize social media to advance public diplomacy objectives.
Importantly, he does so while acknowledging that the effort involves giving up a certain degree of control, and is not totally without risk.
But social networking technologies are more often used to enable individuals across a country, or across the globe, to interact, engage, and become empowered. Although this means that our government will not be able to control the message as well as it might with conventional public diplomacy tools, I believe it is a risk worth taking. Terrorists and other anti-American propagandists have for some time been using the Internet and other techniques to communicate and recruit. America needs to beat them at their own game, especially since we invented most of the technology.
This should offer some comfort to the team over at State that they won’t be second-guessed for taking reasonable risks.