• The success of a company should not only be judged in terms of the financial performance of

the company, but also in terms of the impact of the company on the economy, society and the
environment, i.e. the triple context. (1)

• The company should protect, enhance and invest in the well being of the economy, society
and the environment, i.e. the triple context. (1)

• Being a responsible citizen for a company, means the establishment of an ethical relationship
of responsibility between the company and the society in which it operates. (1)

• Corporate citizenship involves how a company uses its resources, and how it balances its
needs with those of society, to achieve positive, lasting outcomes for the company itself,
society and the environment (1)

• Companies have rights, but they also have legal and moral obligations in respect of their social
and natural environments. (1)

• Being a responsible corporate citizen and sustainable development are inseparable; a

company which is an irresponsible corporate citizen, for example, one which does not treat
its employees fairly, engages in illegal/corrupt practices and has no regard for the environment
is sooner or later going to fail. (1)

• Being a responsible corporate citizen is far more than projecting an image and getting public
relations right. It is about genuine commitment and leadership in the company, not a series
of publicity stunts or a passing phase. (1)

Max of 6 marks for section from 9 available marks

1.8 Metrics that Avengers can use to determine if a social media event is a crisis (3
marks)
Reference: Adams, Diale and Richard (2019: 8/26)
• A social media crisis has information asymmetry. (1)
• It has a decisive change from the norm. (1)
• It escalates within hours on multiple social media platforms. (1)
• A social media crisis has a potentially material impact on the company overall considering
scope and scale. (1)

Max of 3 marks for section from 4 available marks

1.9 Risks and controls of social media (13 Marks)

Note: Your answer should be in a letter format and that means:

• The letter should have your contact details first

• The letter should have a date
• The letter should be addressed to the CEO, Mr Thor
• The letter should have the contact information of the person to whom it is addressed
• The letter should have a greeting
• The letter should have a body (this is your answer)
• The letter should have a closing
8
 AUE2602/201/1/2021

• The letter should have a signature

References
Reference to 1.9.1 Key risks of social media: Adams, Diale and Richard (2019: 8/26)
Reference to 1.9.2 Controls of social media: Adams, Diale and Richard (2019: 8/24-8/26)

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 Mrs/Mr J Doe, Milky way 67, 012 465 3415, jon@doe.com

12 March 2021

Mr Thor
CEO
Avengers Limited
Any address

Dear Mr Thor

I’ m writing to address your request concerning the risk implications that needs to be taken
into consideration as well as good practices to prevent a possible social media crises.

The key risks of social media can include

• brand and reputation damage that may cause a going concern issue within the
organisation in the medium to long term (1)
• uncertain behavior from end users on social media that post adverse comments
damaging the brand of the organization (1)
• risk of disclosure of confidential information on social media platforms (1)
• risk of business impersonation and social engineering as many organisations’
social media platforms have been hacked (1)
• if not managed, a fragmented view of the social media landscape may exist, which
may result in a lack of governance and reporting on social media activities. (1)
(Max of 4 marks for section from 5 available marks)

The following is a list of the controls that Avengers could implement to prevent a possible
social media crisis
• to establish a social media management process and curation team that will
manage and monitor all social media activities inclusive of adverse comments
posted by the public about the organisation (1)
• incorporate the social media response management process in the business
resilience strategy and plan (1)
• Set up a social media policy document for company staff highlighting the rules
when engaging on social media. (1)
• Ascertain which social media platform is most frequently used and if there are users
that comment more frequently than others. (1)
• Set up a social media response team to respond to social media statements
pertaining to the organisation. (1)
• Set up response sessions with the social media response team to advise
management in preparation of a real scenario requiring a response in order to
familiarise them on how to respond. (1)
• Do a trend analysis to determine the most common social media scenarios that
exist in the market. (1)
• Set up simulations to test responses using a sample public population (1)
(Max of 7 marks for section from 8 available marks)
Thank you and do not hesitate should you have any questions

X
10 John D oe