LONDON, October 29 /PRNewswire/ --

- Report Reveals the Positive Influence of Online and Offline Social 
Networking on Business

Business can become more resilient to the effects of economic
downturn by introducing more networked working practices, according to a
report published today by the think tank Demos.

The report, which was produced together with Orange, says that
encouraging employees to build more relationships with colleagues across the
company and utilising networking technology tools to build closer links with
potential customers and partners, can help businesses become more adaptable
to dealing with today's challenging economic climate.

"Social networks can provide a safety net for business," said
Peter Bradwell, Demos researcher and author of the report. "In today's
difficult business environment the instinctive reaction can be to batten down
the hatches and return to the traditional "command and control" techniques
that enable managers to closely monitor and measure productivity. Allowing
workers to have more freedom and flexibility might seem counterintuitive, but
it appears to create businesses more capable of maintaining stability."

The report also suggests that motivating employees to
establish more relationships with colleagues across the company, and by
encouraging social networking practices to build closer links with potential
customers and partners, businesses could benefit in three principle areas:
productivity, innovation and democratic working.

"Networking has always been a fundamental part of good
business practice," said Robert Ainger, Corporate Director, Orange Business
UK. "Its profile and significance is increasing now because of the
proliferation of new technologies that enable us to connect to each other in
our personal and professional lives. But it is also good for companies to be
aware of the tensions and look at deploying practical guidelines which will
protect the positive impact of networks, not hamper it. Technologies and
approaches to management which facilitate social networking are truly
changing and they present a significant opportunity in the current business
climate."

Network Citizens:

The report concludes with a note of caution and some practical advice
with regards to developing a frame work for a responsible and prosperous
network. This should be a group in which its citizens respect the power and
realise the mutual benefit of giving and taking. Businesses should consider
the following guidelines when auditing and analysing their own networks:

1. Do not separate 'social' networking from 'professional'
networking. Attempts to control employees' use of social networking software
in the office may end up damaging the organization in the long run by
depleting its network capital

2. There should be value placed on networks with people
outside the firm. Too often, it is only senior staff who are encouraged to
build relationships with people outside the organization. The power of
horizontal networks across organisational boundaries is clear, and growing

3. Keep in touch with employees that have left the
organisation. The temptation during a difficult economic climate is to hunker
down; but this risks cutting off flows of network capital. Companies should
consider how to keep former employees in the network

4. Do not police networks but consider how they operate and
what could be improved. This should be a first step towards collective
conversations about the 'rules of the game' when it comes to operating within
networks

Mark Turrell, CEO, Imaginatik, a research participant, said: "There is a
real question of how you get the best, most bright people to work for you. We
have a range of incredibly bright people here who benefit from having the
space to explore their ideas and develop them into business opportunities. In
this situation, having virtual a networked environment is really important to
keep people together and maintaining the coherency of the organisation."

See the full report and information about the research at
http://www.orangecoalition.com and
http://www.demos.co.uk/publications/networkcitizens

Notes to Editors

Case studies and network maps:

The organisations that took part in the study are:
    -A large professional services firm.
    -Orange
    -Huddle.
    -Imaginatik.
    -Enterprise Nation.
    -A small plastics trading firm.



Through a series of open ended questions and focus groups, Demos is able
to show graphical representations of each business' different networks; who
is in them and where the connections or dissonances are. This mapping tool
can be key to carrying out a network audit on a current business network and
finding ways to improve and build new structures.

About Demos

Demos is the leading independent think tank in the UK. It
researches social, economic and political problems and generates ideas and
policies to address them.

Demos has published several previous reports on networks and
organisations, including Disorganisation (2004), Network Logic (2004), Work
in Progress (2006), Production Values (2005) and Recruitment 2020 (2007).

http://www.demos.co.uk

About Orange

Orange is a key brand of the France Telecom Group, providing
mobile, broadband, fixed, business and entertainment services across Europe.
It is one of the world's leading telecommunications operators with more than
163 million customers on five continents.

In June, 2006, Orange became the single brand for mobile,
broadband and multi-play offers. In addition, Orange Business Services became
the new banner for business communications solutions. Orange Business
Services is present in 166 countries with network reach in 220.

In the UK, Orange provides high quality GSM coverage to 99% of
the UK population. At the end of June 30 2007, Orange had over 16.7 million
customers in the UK - 15.2 million active mobile customers and over 1.6
million Internet customers.

Orange and any other Orange product or service names included
in this material are trade marks of Orange Personal Communications Services
Limited.

Further information about Orange and France Telecom can be
found on the Orange website at http://www.orange.co.uk or the France Telecom
website at http://www.francetelecom.com