An issue that social networking is bringing to the fore — and has enormous legal implications for organizations — is where the social networking for an employer stops and personal social networking begins. This boundary keeps getting fuzzier and fuzzier all the time.

At the recent Supernova event, held by the University of Pennsylvania Wharton School, legal commentator Denise Howell convened a panel to discuss the legal ramifications of social networking in the workplace. She was joined by Alex Macgillivary, Kerry Krzynowek, and Gabe Ramsey in a rousing discussion of this new legal frontier.

In an online podcast interview right before the event, Howell talked about the challenges social media brings to the table. On one hand, there’s really nothing new about them. “Organizations had to adopt email a decade ago,” she pointed out. Before that, there were telephones, and so forth. Every generation has a new challenge, but the same common-sense rules need to apply. “Our online communications tools are just sort of a progression. They don’t involve a whole lot more issues, but they seem like they do. They may be amplifying or blowing out of control what was originally done with pen and ink and paper.”

The common-sense rules that should already be in place for earlier forms of communication or face-to-face interaction should apply to social media as well, Howell explained. Rules around harassment and discrimination apply equally to social media. The difference is that the line between worktime and personal time has blurred.

If an employee has friended his boss online, and issues arise in communications that occur after hours, is the organization still responsible?  Yes, Howell says. “Companies are having to think about having policies in plkace that govern what people do whilke on the clock while off the clock. So it makes sense to have guidelines in place to let people know what is expected of them. It’s gettimg increasingly hard to draw that line.  That’s another consideration for human resources departments.”

Mary Trigiani live-blogged the panel discussion and provided a working summary of the most salient points of advice from the panel session:

Extend traditional boundaries of etiquette and propriety: “Over time, we have seen all types of new technological tools get incorporated and integrated into existing communications…. Most traditional policies work just as well in the social element, but there are differences in social communication that are driving a new look at policy:  the informality and immediacy of social media mean that review of advance drafts is pretty much out the window; the blurred lines between personal and professional mean that each  persona reflects on the other; and user generated content, while a staple of social communication, has always been vetted in the traditional corporate structure. …The important thing to remember is that social media enables traditional communication while it creates new opportunities to build trust between people and companies, whatever the relationship.”

Teach people the boundaries from a good place: “The simpler the policy, the better; focus on the substantive issues. Just because an individual can communicate anything, anytime via social networks doesn’t mean that the company can or should.  Any training should be developed from the mindset of what the company is trying to do, not what it’s trying to avoid.”

Think about whether an employee is a company rep 24/7: “Separation of church and state, in social media at least, is still an experiment.”

What is secret needs to say secret, but let’s not obsess about it: “The reality is that if something is a secret, the company and its people need to keep it that way — otherwise you can’t protect the content.  Yet the focus should be on how we engage with employees and customers in a way that builds allegiance — so that confidentiality is organic among all parties.”

Risk has always been part of doing business: “Launching products and talking about what you do is risky, whether it’s coming from a member of the executive team or an employee.  The onus is on everyone to be smart about what is said.”

Social media and Enterprise 2.0 have torn down the wall between worklife and personal life.  The benefit is a more flexible work environment in which employees can deliver their more productive work without being hamstrung by the 9-to-5 cage. The risk is actions and words that can affect company business occur beyond the direct control of the organization. This is a balancing act companies will need to address as Enterprise 2.0 becomes a greater part of the organizational culture. But let’s hope the innovation and collaborative spirit that Enterprise 2.0 brings into organizations will not be gummed up by legal liability fears.