Social Media and JPMorgan

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How has social media changed your life?  Has social media affected the way you do business?  In our last two social media seminars, we learned that social media is a mechanism that can spur movements, increase awareness of public issues, and transform a molehill into a mountain.  Our assignment this week is to reflect on how a particular news issue or story has affected an audience.

TWITTER & JP MORGAN AND CHASE

JP Morgan and Chase, an American multinational banking Financial institution, was in hot water on the week of November 15, 2013, after cancelling a question & answer session on Twitter.

JPMorgan’s formula was simple:  provide an opportunity for Twitter users to chat with senior investment banker Jimmy Lee.  The result was an unexpected backlash of pointed questions and insults directed towards the investment company and Lee himself.  The social media session turned into a PR nightmare, which JPMorgan wished they never started in the first place.  Tweets to Lee demanded response to ethical implications of the firm’s investment practices, and how the firm exploited their clients for their own financial gain.

JPMorgan sought to engage the global community

JPMorgan sought to engage the global community by using social media.  The spirit of the Q&A session was to develop a better relationship with the general public.  According to a story by CBC.ca, “Many of the tweeters out there don’t like the multinational financial services firm. As in, really, really don’t like them.”  Social media activists demanded answers to JPMorgan’s investment policies, that included Enron, Worldcom,  an overcharge of active military personnel, and alleged manipulation of the energy market for the firm’s financial gain.  A quick Google search will show that JPMorgan is highly unpopular outside of their investment circle because of their questionable record of investment practices.

FACEBOOK STATISTICS

According to Facebook statistics, in Canada, approximately 96,000 people have liked JPMorgan and Chase.  In the United States, approximately 2.4 million people have liked the firm.  It is safe to suggest that as an investment firm, they have quite the social media presence.  Could they have not have thought of a better solution to the outcry other than to terminate all conversation?

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Social media as a bridge

Social media acts as a bridge between you/your company and the rest of the world.  Prior to JPMorgan’s Twitter announcement,  policy analysts and public relations coordinators should have prepared responses to the global community.     Instead, JPMorgan could have stated they are unable to discuss those issues at the present time.  The firm did not have to speak to any of the allegations.  Regardless of the outcome or backlash, JPMorgan should not have closed discussion.

Social media is an opportunity

Social media is an opportunity to create and maintain lasting relationships.  Undoubtedly, word of mouth communication is paramount for any business or person.  However, with tools such as Facebook, Twitter, Google+, LinkedIn, Instagram, and Pinterest to name a few, it is prudent to actively develop an online presence than to not have one.

Has social media changed your impression of organizations in the last 5 years?  What have you done to develop your online presence?

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Any comments?  Please let me know below.

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