The growing popularity of the social media is easily visible in peoples everyday lives.

But along with it businesses also have not remained behind from exploiting it as an
opportunity to reach their customers. It is now increasingly being seen that the social
media are being used by businesses for marketing and selling their products. So, apart
from being hubs of social interaction, the social media are also acting as channels to grow
your business online. If one is able to keep some factors in mind and act the right way,
then, in social media he can find a great opportunity for his business. Today, business is
all about marketing and selling your product the right way. Interestingly, online
marketing has added a new dimension to it and where will one get a better meeting point
for his customers than social media. The ever increasing popularity of social media sites
like facebook is a proof of the same.
owever, still the best thing to do while marketing online especially through social
media like facebook is to remain legally wise, since there are legal hurdles also involved
in it. It will not be an exaggeration to say that in a decade social media has taken over the
world. ! very important benefit that the social media can provide to a business is the
ability to monitor the public perception of its brand. But, there are also some risks which
will have to be kept in mind.
"egally astute managers can identify and pursue opportunities to use the law for
maximi#ing the value created and also the share of the firm in it. They can often forestall
an onerous regulation and converts such pressures or threats into opportunities for value
creation by being proactive. $n the opposite side the managers who lack legal astuteness
will not be able to use law for strategy and planning and thus will not be able to derive a
competitive advantage for their firm.
The four components of legally astute social media marketing manager are as follows%
&. a set of value laden attitudes
'. a proactive approach
(. the ability to exercise informed )udgment
*. +ontext specific knowledge of the relevant law and the appropriate application of
legal tools.
&. ! set of value laden attitudes% "egally astute managers understand the importance
of law well for the firms success. They also understand the importance of its
integration into strategy and planning. They formulate strategies while keeping
the importance of law in mind such that competitive advantage can be gained
from it. They also provide ongoing information so that their lawyers can actively
be a part of the strategy formulation and planning.
'. ,roactive approach% "egal issues or considerations should not be considered as an
afterthought or )ust as an add-on to the firms strategy. Instead what legally astute
managers do is to include the legal opportunities in their strategy at every stage in
both its formulation and implementation. They remain proactive and introduce
legal counsel at the early stage of decision making.
(. !bility to exercise informed )udgment% "egally astute managers understand that
it is the general managers task to decide which allocation of resources is most
sensible for the business and not the lawyers. They have the ability to exercise
informed )udgment while managing the legal issues and constraints related to the
business. !fter all, until the counsel has advised that a particular course of action
can be illegal, it is the managements )ob to decide that which risk is worth taking
and which opportunity should be exploited.
*. +ontext specific knowledge% ! legally astute manager has the appropriate degree
of understanding as to how important a role law plays in the business. It is
generally not obvious to the managers that to which extent the risks or rewards
related to the business are affected by the law. In such instances it is essential to
understand how a context specific knowledge of the law can be helpful at
managing and shaping the legal structure of their business.
.hen it comes to disputes in case of consumers who make purchase from businesses
that provide links through social media, the $n-line alternative dispute resolution
methods are most affective. /ainly following dispute resolution methods are used in
these cases%
a. /ediation% In mediation a third party called the mediator helps business and the
consumer find a resolution to the problem by facilitating dialogue. $ther similar
approaches are assisted negotiation and conciliation.
b. !rbitration% In arbitration, a third party called the arbitrator collects the necessary
information from both the consumer and the business and makes a decision on its
basis. /ostly, the decision of the arbitrator is considered to be binding.
c. !utomated negotiation% It is a computeri#ed process, which is generally used for
settling disputes over monetary amounts.
+onsumer transactions on social media can occur across state boundaries. ere federal
government has a very important role to play. It can best regulate these transactions and
effectively minimi#e chances of dispute through taking some steps. It should work with
both business and consumer representatives in this direction towards the promotion of
transparent policies and procedures. It is especially important in the case of cross border
transactions.
The government should collaborate with both businesses and consumers to include the
development and promotion of transparent cross border consumer protection programs.
!nother important step in this direction is to review consumer protection laws in
collaboration with business and consumer representatives for making them applicable to
0-commerce.
! very important factor to consider is including the other governments and working in
collaboration with them for combating cross-border fraudulent commercial conduct.
International cooperation is very important in this regard for developing agreements
related to !lternative 1ispute 2esolution regarding consumer complaints and disputes.
$f the three branches of the government the executive can be most effective at
regulating the consumer transactions via social media outlets. These transactions form a
part of 0- commerce which can be regulated by the 1epartment of +ommerce under the
executive branch.
2eference%
Bagley, +. 0. 3n.d.4. 5.inning "egally% The 6alue of "egal !stuteness7. In Academy of
Management Review. 2etrieved /ay 8, '9&(, from
http%::mba.yale.edu:faculty:pdf:bagley;winning"egally;&';&<;9<.pdf
!lternative 1ispute 2esolution for +onsumer Transactions in the Borderless $nline
/arket ,lace 3n.d.4. In Web Dispute Resolutions. 2etrieved /ay 8, '9&(, from
http%::www.ftc.gov:bcp:altdisresolution:comments:downey.pdf
!lternative 1ispute 2esolution 3n.d.4. In econsumer.gov. 2etrieved /ay 8, '9&(, from
http%::www.econsumer.gov:english:resolve:adr.shtm