The Times Online published one of the better articles on allowing employees to use Web 2.0 tools for work related purposes. The concern is that employers will have access to personal details about your life outside work that may in some way damage your relationship with your employer. You click through to the article here: Let your employees use Facebook — it's less risky than you think. From the author, Mark Watt's, perspective their is little potential harm and lots of opportunity to have better relationships at work and with colleagues that you could potentially do business with. There also is little legal risk for employers.
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