This decision set hearts fluttering as the power brokers at all stages of the creative process calculated the potential loss in revenues this might cause. Of course, from the consumers' perspective, the Library's decision and the change in copyright law was a long time coming. The tighter the grip some companies like Apple had on its products, the greater the likelihood that people would find ways around it. Even despite the market share Apple holds and the popularity of its products, the people have said, “This is how we want these devices to work and what we want to do with them.”

That goes for most things these days, especially regarding technology. With the hundreds of millions of Web 2.0 users collaborating, creating mash-ups and building ideas on top of other ideas, the Internet community today has an abundance of potential to figure out ways to confound even the most diligent of security systems to get what people want. More often than not, those very same people will give away their solutions for free as part of the “greater good.”

While Lennon's 1971 song was written in the midst of the widespread protests of the U.S.'s downward-spiraling entanglement in the Vietnam War, the words ring just as true today as the people protest the nation's downward-spiraling economy. Just as those protests of the '60s and '70s forever changed how we viewed our government, the rebellion of restrictions on our rights as individual consumers is forever changing how we look upon the corporate world.

Social media is fueling that feeling by giving people the tools to take control over how they interact with businesses and each other, and all the information that goes with it. Individuals now determine what, when and how those interactions occur; they choose with whom they want to socialize and do business with and, through the creation of avatars (computer users' representation of themselves, often an alter ego of some kind), choose whether or not to be known to the other parties.

Although such power can be exhilarating, it has both good and bad consequences. Regardless, businesses are finally beginning to understand how to tap into this communications media to influence consumers, thereby hoping to sway the power the people wield. But just as the power is shifting to the people on this front, the rules, restrictions and laws are shifting to the corporations that are tightening the parameters of how they participate in this new sandbox.

Legal implications

I recently attended a business dinner at which a presentation was given on the legal implications of using social media for employers. The speaker, a local attorney (and by virtue of complete disclosure, I am not a lawyer nor do I play one on TV), covered a wide array of uses in which employees might be engaged while on company time, the potential sources of liability and tips for avoiding or insulating your business from them.

For corporations, the potential exposures begin even before the hiring takes place. More companies are using social networking sites like Facebook, LinkedIn and Twitter to screen candidates, not just for background information, but to paint a fully dimensional picture of the person. HR departments must remember to inform the candidate the company will use such resources, just as the candidate knows the list of references they give prospective employers most likely will be contacted. And when surfing the Web for information, what the company uses as a result isn't necessarily restricted by law, unlike how a previous employer is restricted as to what he or she can say about the former employee.

Social networking sites that the candidate may have visited or be part of might uncover information such as sexual orientation, race or disability that, if used to determine their eligibility, could be grounds for discrimination. The same could be said for an employer that dismisses someone based on their social networking activities; it can expose the company to litigation as well.

In the same way HR is responsible for enforcing anti-harassment policies and training in the workforce, social networking sites can often be fertile ground for fostering such harassing comments about other employees or competitors. Gossipy coworkers on Facebook might think they are just “talking amongst themselves,” but if the object of their comments is offended, the company they work for could be held responsible.

Think of the devastating stories in the news lately about cyber bullies and the sometimes tragic consequences. Now put your agency in the shoes of the school or board of education where one of these incidents took place. How would you react? Would your policy and previous actions with your entire staff mitigate your exposure?

Even the fairly benign process of providing a reference to one of your contacts on LinkedIn could be problematic for the company if it is for an ex-employee who was fired from the company for reasons unknown to the employee/friend writing the reference.

Although these are just a few of the growing numbers of potential liabilities for businesses using social media, this is not meant to deter you from leveraging the power of social media. There are ways to protect or minimize your company's exposure, and they all begin with having an effective and enforceable social networking/media policy. As I've mentioned before, there are several guidelines and sample policies on the Web that agencies can tap for inspiration (check out the Agents Council for Technology website).

The policy should be part of every business's employee handbook and personnel policies. All employee contracts should be updated and each of the staff should review the policy and sign off on it.

A small detail some companies and policies overlook is that of controlling usernames and passwords. If, as I've encouraged in the past, employers empower staff as part of their responsibilities to engage in social media, then regardless of any personal presence an individual might have, new usernames and passwords should be established and provided to HR. Then if the employee leaves the company, you can turn off access to all social networking accounts.

All staff should be reminded of the agency's social media policy on a proactive basis. Don't wait for the incident to occur and then drag out the handbook; by then it's too late.

Balancing act

The truth to this whole subject is that for business and the economy to recover and grow, the power has to be shared; it's always been that way. But to share in it, you've got to grab your own piece and learn to exert it for your business and personal growth.

Author's note: Two brief notes on last month's column on Foursquare. First, as with any new product, it's only when it reaches critical mass, or as Malcolm Gladwell calls it, the “tipping point,” that it will have potential for success. This is especially true for Foursquare and other social networking tools. In my local community where most of my shops, services and storefronts can be found, and at which I dutifully “checked in” each and every time I frequented them, I didn't find one person I knew, let alone hordes of people I wanted to get to know. This will change as the usage grows and so, like the first fax machine, it will only get better the more people power up their social networks.

Second, I discovered that I already had an app on my iPhone very similar to Foursquare called Yelp. Who knew?