I know many companies out there are facing this issue, and with social media and social networking still being relatively new as far as application in the business world goes, there’s not a library of case studies to reference.  So where is the line between allowing your employees to participate vs monitoring or even preventing participation?  What are the potential legal liabilities and how do you proactively address them, beyond a social media policy?  What sites should be allowed, which ones shouldn’t and why?  There are all sorts of legal issues to consider but when does the potential liability become so great that the best decision is to refrain from social networking in the work setting?  And does that defeat the purpose of social networking in the first place?  If anyone has articles or sources to cite, please send them my way.