According to Nair (2011), “Web-based social media is exploding and quickly becoming a necessary part of any organization's arsenal. It took 38 years for radio to attract 50 million listeners and 13 years for television to capture the attention of 50 million viewers. The Internet took only four years to attract 50 million participants, and Facebook reached 50 million participants in just a year and a half. Facebook, originally designed for Harvard students and launched in 2004, has become a phenomenal example of social engagement. In 2009, Facebook had already reached 100 million monthly active users covering age groups from 13 to 65; By the end of 2010, there were more than 500 million users. (p. 46) With so many people connected through social media and as businesses depend on people to thrive, they have been impacted both positively and negatively. According to Nair (2011), social media can be described as online tools where content, opinions, perspectives, ideas and media can be shared. Some people create content, while others hide, observe, or broadcast content. At its core, social media is about relationships and connections between people and organizations. (p. 45) Due to the large amount of information shared through social media, the way businesses interact with their business partners or their suppliers also started creating a new product using the information available to them through social media, thereby achieving higher profits. At the same time, due to social media and the amount of information shared through these services, businesses have found themselves in a position where they must be careful about how they operate to preserve their reputation and position. paper ...... they are moving. Since American companies now need to be more careful in their actions and behavior, employees who work for these organizations should do so as well. Works CitedNair, M. (2011), Understanding and Measuring the Value of Social Media. J. Corp. Fin., 22: 45-51. doi:10.1002/jcaf.20674PAVITT, H. (2012). No place to hide: New technological advances in Web 2.0 and social media could force organizations to improve their social responsibility. Social Alternatives, 31(2), 22-26.PIKE, GH (2011). Taken from Facebook. Information Today, 28(4), 26.Pooja, M., Black, JE, Jiangmei, C., Berger, PD and Weinberg, BD (2012). The impact of social media use on consumer purchasing behavior. Advances In Management, 5(1), 14-22. SOCIAL MEDIA Social media incidents cost businesses $4 million in 2010. (2011). Journal of Information Management, 45(6), 18.