By Cydney Posner

An article in today's WSJ discusses the growing use of corporate blogs and tweets and the increasing concerns regarding the securities law implications. Companies like the spontaneity created by blogs and tweets, as well as their ability to reach out to a broader community: "Eighty-one Fortune 500 companies sponsor public blogs, including Wal-Mart Stores Inc., Chevron Corp. and General Motors Corp., according to the Society for New Communications Research. Of those blogs, 23 link to corporate Twitter accounts." However, tensions can arise: "Such efforts raise thorny questions. Blogs and tweets can run afoul of Securities and Exchange Commission regulations on corporate communications. But sanitizing such posts risks hurting credibility with online audiences. The SEC boasts its own Twitter account, and encourages companies to communicate to investors via the Web.

"But even some tech-savvy companies remain wary. Intel Corp. in May will be among the first companies to allow shareholders to ask questions via the Web and vote online during its annual meeting. But the chip maker avoids blogs and Twitter for investor issues, because it fears violating SEC disclosure rules or inviting public criticism in a company-hosted forum, says Kevin Sellers, vice president of investor relations.

'There's always going to be a person with an axe to grind,' he says. 'Do we really want to sponsor that?' "

Corporate bloggers and tweeters are being advised by legal to stick more closely to the script: "Corporate lawyers say companies should devise a social-media policy before adopting blogs or Twitter. 'All of the traditional ways that a company can get in trouble for making public statements' apply to the Web,' says Lisa Wood, of Foley Hoag LLP.

"She urges companies to include the standard disclaimers they use in other communications. Ms. Wood says companies shouldn't disclose financial information on Twitter that isn't available elsewhere, and should make clear that opinions expressed by others in company-sponsored forums -- like comments on blogs -- don't represent management's views."

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