Fortune 500 CEOs Don’t Get Social Media! [Research]

Social Media – Not For Me! Say Top CEOs

70% of the Fortune 500 CEOs have no presence on social media networks according to The 2012 Fortune 500 Social CEO Index compiled by CEO.com and Domo.
Despite being influential business leaders, these CEOs lag the US population on every social media platform except LinkedIn. These CEOs myopically miss the connection between their lack of social media activity and their standing with customers, employees and the general pubic.

Social CEOs by the numbers

Here are some notable tidbits from the 2012 Fortune 500 Social CEO Index.

• It’s lonely at the top. Two thirds of CEOs on Facebook have less than 100 friends and over a quarter of CEOs on LinkedIn have 1 or 0 connections.
• It’s what you know, not who you know for Social CEOs. Warren Buffett is the least active CEO on Twitter (He’s tweeted once) and he has the third highest CEO Klout score (62).
• It helps to own the platform. Larry Page is included in more than 2 million circles on Google+.

Based on other research by IBM, one out of six CEOs engages with customers on social media, a number expected to more than triple in the next three to five years.  This means that these senior executives need to come up to speed and become social media savvy. (BTW, we can help with this!)

3 Reasons social media frightens CEOs

Here are three reasons CEOs, especially those who head a public company, don’t want to be active on social media.

1. Lack digital prowess. Since it takes time to acquire the experience and rise through corporate hierarchy to become a CEO, most senior executives aren’t digital natives. In their public role as company head, they don’t want to show any weakness. Ironically, showing that you’re human and willing to participate on social media can work to enhance your executive standing with both your employees and your customers. Further, in an era where customers don’t trust marketing, over 80% of employees believe social CEOs are better leaders and more trustworthy according to Brandfog research.
2. Dread bad PR. Regardless of a CEO’s intentions, all of their messages become fodder for the media. In today’s 24/7 media cycle, senior executives are more concerned with starting a PR firestorm by misspeaking than they are with building relationships with their customers, employees, investors, the media, the government and the public. Contrary to what CEOs think, the Brandfog research revealed that over 90% of employees believe social CEOs are more ready to deal with PR crises. (Here’s what to do when social media goes bad.)
3. Fear liability.  Not being on social media enables CEOs to avoid foot-in-mouth disease where they say the most inappropriate thing. Everything a CEO communicates, whether it’s corporate statements, speeches, email or social media, can become the basis for legal action.

3 Ways CEOs can leverage social media

When used well, social media can be a senior executive’s best ally. Here are three reasons every CEO should rush to build their social media presence.

1. Provides a media platform. Creating a social media presence offers senior business executives the ability to offer their perspective on issues related to their core business as well as current events. Through the use of social media, executives can talk directly to their customers, employees and the public when and how they want to. For example, Scott Monty of Ford Motor Company was able to use his social media tribe to help contain a potential PR crisis.
2. Sets an example for employees. Being an active participant in the social media ecosphere shows others how to engage publically without divulging corporate secrets. An active CEO encourages others to engage and shows public support for social media activity that helps build brand and customer relationships over time. Make sure that your organization has a set of social media guidelines.
3. Builds a social media following. This is a critical point. Any CEO who’s afraid of public backlash should rush to create a social media presence. Having a social media base can translate to support during tough times or a crisis regardless of the cause. Understand that social media requires time which CEOs are woefully short of. Therefore focus your involvement to maximize results. Don’t think that you can get a college student who knows Facebook. Instead be transparent about your interactions. Focus on a small number of engagements and get savvy internal support.

As a CEO, it’s critical to take that first scary step into the social media stream because you’ll find that your fears will be met with ways to improve your organization’s brand, customer relationships and employee support.
What other suggestions do you have for CEOs who are standing on the sidelines?
Happy marketing,
Heidi Cohen