The insurance industry has been beset with the need for transparency. From how brokers are compensated and what market incentives are offered to place business with one company, to the security of client information and the management of data, our industry has been inundated with regulations and standards for ensuring complete transparency.

For many systems developers and solution providers, offering those qualities and features have become more important in marketing their products than ever before. The issue of transparency has, up until this point, been focused on what results from use of these tools and implementing new workflows. With the growing use of social media, the question of transparency in this environment has shifted more to how you use these new tools than what results from them.

Social media versus e-mail

I don't believe you can pick up a magazine (trade or general) without reading about blogging, Twitter, Facebook or other social media. Every conference you attend most likely will have sessions on these tools and how to use them, how to build an agency policy for their use, and/or how to build a plan for rolling out their use in marketing or communications.

I can't quite remember, but I'm sure there was as much hubbub around e-mail when it first appeared in our daily lives. I know there were lots of discussions around whether there was any need for e-mail and all of the “evil” effects it would have on business communications and building relationships.

Until recently, some executives still have misguided pride in not having a computer in their offices or in knowing how to use one. For some, there was even a belief that if they dictated note to their assistants, who e-mailed the notes, the executives were e-mail savvy.

But that was the extent of the discussions. How would it fit into the business environment, what impact it would have on normal written correspondence, and what influence would e-mail have on relationships?

Today, however, social media has taken on a whole different scope of issues–not just how to use it and where it might best fit into your agency workflow, but where are the limits of its use and what crosses the line. This is where the question of ethics comes into play.

Can the Internet be transparent?

In my February column, I wrote about the “responsibilities of change” and the role each of us must play in managing new technology. Setting and communicating your agency's policies around the use of social media are part of those responsibilities.

I'm not talking about how much access you should allow your staff to Facebook or Twitter, but rather how it is used throughout your agency and where do those boundaries lie.

Regardless of the size of your company, the Internet helps level the playing field. However, it also can hide the true nature of those with whom you are interacting.

An important and valuable aspect of social media is our ability to tap into what is being said by our customers about our service, products and pricing. Unfortunately, some companies and marketing professionals use the anonymity of the Internet to try and manipulate public opinion. Some company management believe it is okay to ask staff to pose as satisfied customers, go online and post tweets or comments that tout the great things about the company.

While many of you may immediately see the conflict and question the ethical boundaries, others do not, frequently citing the oft-used excuse that “people do this all the time.” While that may be true, it can't be done without accepting the growing consequence that is becoming very expensive.

In a recent issue of Public Relations Tactics (www.prsa.org), an article by Ann Subervi, president and CEO of Utopia Communications, referred to a major PR firm that did work for a Fortune 500 client and “found itself involved in a public controversy because it sponsored two freelance writers to pose as consumers and post online blog entries relating to their client.”

Similarly, Subervi writes, a different organization based in New York crossed the boundary by urging its employees to go onto review sites pretending to be satisfied customers. “As a result, the organization had to pay $300,000 in penalties to the State of New York, one of the first cases in the country aimed at combating 'astroturfing,' commonly defined as the artificial creation of grassroots buzz for a product, service or political viewpoint,” Subervi wrote.

Does your CEO blog?

More subtle issues of breaching ethical boundaries in the social media environment have to do with executive blogging. The idea of having the president or CEO become the “face” of the corporation, sharing his or her vision and being open to responding to feedback, recently has become a more viable public relations tool. It makes the company more personable and approachable. Where the issue comes into play is when, for very legitimate reasons, the executive (or someone in the communications/PR department) suggests that someone ghostwrite the blog posts.

For many, ghostwriting a blog for a busy executive is just like ghostwriting a business book for the same executive. For others, there is a great difference. Business books are about demonstrating your knowledge. As long as you get the information you need from the book, who actually wrote the words seems less important.
An executive can be brilliant about his or her area of expertise, but a terrible writer. Why lose out on all that knowledge?

On the other hand, social media is less about the grammatical exactness of the post than it is about the message conveyed (especially if you've ever seen some of the abbreviations used on that platform). Social media is as much about building relationships as anything else and, to do that, you need to build trust, expose your personality and most importantly, be honest. It's hard to do those tasks through someone else's voice.

People who follow these issues will sometimes distinguish the argument between the personal and business use of social media. Many people are skeptical of any of the reviews about a company or its products or, for that matter, the various blogs a company may leverage to keep track of what their public is saying. Don't we all take television commercials with a grain of salt? Why should that be any different?

As you progress in your usage of social media for marketing your agency and staying in touch with clients, don't let the implementation plan you've put in place fall by the wayside. Don't let shortcuts compromise your goals. There are ways to accomplish both.

You shouldn't feel that any use of social media has to be from a specific person within your agency. Consider setting up a blog that has several staff contributing to it; just be sure to represent it that way. Create a Twitter account for your agency and use your logo and branding to identify it as such. Then be sure to have in place and have fully communicated internally, the agency's policy on staff use of social media, what is and isn't appropriate online, etc.

Check out a recent report from the Agent's Council for Technology (ACT) called Creating a Social Web Policy for Your Independent Agency. It gives a solid foundation for developing your own policy and helps you avoid those potentially ethical conundrums. Transparency in all of your dealings helps ensure that your customers see you as that trusted and reliable insurance advisor.

Beyond e-mail, social media is the first technology agents have at their disposal that is truly in their control. Agency management systems, rating systems or any of the other software you use to do your job are likely implemented into your agency workflow and serve a specific purpose. Social media technology, on the other hand, is a platform that you control for the purpose of your choice, whether it's marketing, communications, polling, driving discussions or whatever.

While most people agree that social media tools have put a tremendous amount of power into the hands of consumers, it has put an equal amount of power into the hands of business–for those who to use it responsibly.

Special Reports /

Transparency of Social Media

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