The meteoric rise in popularity of social networking sites have caught companies napping, with many still fumbling for a game plan to contain its impact on the corporate bottomline.

Of 100 companies here surveyed, 76 per cent - or three in four - have yet to come up with a social media policy.

This, despite one in two saying they have been hit directly or indirectly by indiscretions posted online.

For employees hooked on Facebook, the good news is that most companies are against an outright ban on its use in the workplace.

They are inclined towards less heavy-handed methods, such as educating staff on what material can be posted online and what's off limits.

The survey of companies with 500 staff members or more was conducted by an IT security Symantec in January. The survey findings were released on Wednesday.

Symantec spokesman Unmesh Deshmukh described the lack of a corporate response to social media as 'alarming''.