Expert Roundtable: Should Family Offices Have Social Media Policies?

Social media has fostered connections for many people — but it also creates risks, especially for families that have traditionally been relatively private. Can — or should — a family office control the social media activity of its family members and/or employees? We got insight into how some family offices seek to educate their staffs and families on social media best practices. We also asked three consultants to family offices about how they advise their clients on social media policies.

Family members on their family office’s approach to social media

Image by Cassidy Reed

Not many families have social media policies, or even guidelines about content. Some, my own included, have regular cybersecurity training, which includes best practices around the process of posting: for example, avoiding posts with exact locations, expensive cars, jewelry or bags, and posting when you return from vacation rather than when you’re there. Many families also encourage family members to think about joint family values when they post on social media, and avoid anything that is incongruent with their values. Of course, this requires a family to have articulated a set of joint values. In my family, the fourth generation is considering whether we want to extend this to our staff. While we recognize that they are not members of the family, they do represent us, and we want to ensure we’re comfortable with what they’re putting out in the world. I think we’ll see more and more families ask both family members and employees to adhere to some basic guidelines, especially with the prevalence of social media in our society today.  

— Bryn Monahan, family enterprise consultant with Relative Solutions, and fourth-generation family member

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We trust everyone to not be stupid! Having said that, we do try to educate everyone to remember that everything on the internet lives forever, that it’s all traceable (e.g., location), and that personal/business/family views can be conflated in unintended ways.

— Josh Kanter, founder and CEO of leafplanner

We are not advanced enough to have any guideline for beneficiaries’ individual approach to social media, yet I acknowledge this is very important to guarantee confidentiality. We have chosen to publish our whole story and family tree on the internet mostly with a vision to enhance our family legacy and to educate newcomers as we have been taught that the most valuable inheritance from our parents is our legacy, well represented at www.maldonadofamily.com.

— Alexander Degwitz, family council chair and head of GEMIS, the family office of the Maldonado family

Consultants to family offices on trends and advice regarding social media

Families have gotten a lot smarter in this regard. But it’s important for family offices to make people aware and create a culture of privacy and confidentiality. Don’t assume it’s common knowledge. This goes for both family office staff and family members. Family office staff should be subject to NDAs and confidentiality agreements, but also social media policies relating to LinkedIn and other social media platforms. These should extend to family members, as well. Creating awareness of the risks, with examples, should also occur periodically. You can’t expect all family members or family office staff to behave appropriately or accordingly if you don’t socialize the standards, as well as the risks to inappropriate conduct. You also need to revisit these issues at least once a year, to keep the risks and standards fresh in everyone’s minds. 

— Mark R. Tepsich, family office design and governance strategist with UBS

Image by Cassidy Reed

With the increasing prevalence of photos and videos, and the proliferation of social media, more aspects of life are becoming publicly available, making privacy much more difficult to maintain. As a result, many enterprising families are increasingly focused on establishing a comprehensive code of conduct for family members and family enterprise staff. These codes often include specific social media guidelines, understanding that each family member or family representative represents the family publicly, making it crucial for their actions online to align with the family’s core values.

The social media guidelines within these codes of conduct typically direct family members and their teams to reflect these values in their online presence. Many families even require confidentiality agreements or NDAs to protect sensitive family information from being shared online. Additionally, the guidelines may address limiting the display of alcohol or drugs on social media, depending on the family’s values and the legal landscape.

One challenge is adjudicating violations of these guidelines. Some families address this by setting up a family council that reviews breaches and decides on appropriate consequences, often requiring a significant consensus for decisions. In serious cases, these decisions can result in a family member no longer being allowed to remain an owner or an employee of the family enterprise.

Given the importance of maintaining a positive reputation, we recommend that families who have not yet considered implementing a code of conduct, including social media guidelines, do so. Establishing clear expectations is a crucial step in protecting the family’s public image and ensuring that all members align with the broader family values. Overall, these codes of conduct, with their included social media guidelines, are part of a broader effort to maintain the integrity and reputation of the family and its business interests in the public eye.

— Maryann Bell, partner, Wingspan Legacy Partners

In general, I see fairly conservative policies for social media guidelines for staff, as many families are very protective of their privacy. Confidentiality is essential, and a simple mistake can lead to widespread sharing of information that can reveal details the family would not want shared.  Social media guidelines for the family vary widely, but also focus on the sensitivity of the family name and the importance of being thoughtful about what is shared. The best guidelines strike a balance of protecting the family while also allowing active social media users to post on a personal level.

— Joshua Nacht, Ph.D., principal consultant, The Family Business Consulting Group

About the Author

Margaret Steen

Margaret Steen is the editor of FO Pro, The Family Office Professional. Based in Silicon Valley, she has written for Family Business Magazine for more than 15 years.


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