Social media

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Managers play a major role within any company. Not only must they understand the business of the company, but they must also possess legal astuteness. According to Bagley, Legal astuteness is the ability of a manager to communicate effectively with counsel and to work together to solve complex problems. For example, legally astute managers can (1) negotiate contracts as complements to trust building and other relational governance techniques to define and strengthen relationships and reduce transactions costs, (2) protect and enhance the realizable value of the firm’s resources, (3) create options through contracts and other legal tools, and (4) convert regulatory constraints into opportunities. Legal astuteness has four components: a set of value-laden attitudes about the importance of law to the firm’s success, a proactive approach to legal issues and regulation, the ability to exercise informed judgment when managing the legal aspects of business, and context-specific knowledge of the law and appropriate use of legal tools (Bagley, 2013, p.11). With each component, social media marketing manager who utilizes social media outlets, such as Facebook, for consumer transactions, mitigate the risk doing business through cyberspace. Having a set of value-laden attitude is essential when doing business in the cyberspace. Managers must consider the success of the business. The laws and regulations are guidelines to help managers determine the risks and opportunity while doing business through cyberspace by ensuring that the business is legal. Managers act proactively seeking out legal advice about the business that is in compliance with laws and regulations. Using managerial judgment is also key when managing the legal aspect of a soc... ... middle of paper ... ...An Overview.” (n.d.) Agency Relationships: An Overview. Retrieved from http://www.shsu.edu/~klett/agency%20et%20al.htm Bagley, Constance. (2013). “Law, Value Creation, and Risk Management”. (7 ed.), Managers and the Legal Environment (p.11). Mason, Ohio: Cengage Learning, 2013. “Dodd-Frank Wall Street Reform 327 in the last year.” (23 Jan. 2013). Federal Reserve. Retrieved from http://www.federalregister.gov/articles/2013/01/23/2013-01255/social- media-consumer-compliance -risk-management-guidance. “Federal Register Tutorial.” (n.d.). National Archives and Records Administration. National Archives and Records Administration, Retrieved from http://www.archives.gov/federal- register/tutorial/online-html.html “U.S. Federal Government.” (5 Feb. 2014). USA.gov: The U.S. Government’s Official Web Portal, Retrieved from http://usa.gov/Agencies/federal.shtml.

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