SOCIAL MEDIA: NEW CHALLENGES FOR CORPORATE GOVERNANCE

Social networking allows users to connect and interact with likeminded people. While these tools were originally developed for individual use, the aspects of information sharing and instant responsiveness of social media lend itself well for corporate communications. Through social media platforms, companies can build and promote their brands, introduce new products, and learn about their customer base. Social media becomes an extension of real world communication strategies by allowing enhanced transparency and increasing interaction between companies and their stakeholders. In this paper an attempt has been made to define the role of social media in applying good corporate governance practices and problems arises due to social media and explained precautions can be taken by companies to use social media for the better corporate governance practices