When studies are released about the adoption of social media one of the biggest reasons that give people pause or cause them to fear using it is that they or an employee could make a misstep and hurt their company. It is a reasonable concern when you have worked for years to build a company into what it is.
Personally though I look at being wrong or making a misstep as something that can potentially help the brand. Being able to admit you are wrong, show that you are human, and show that you care about your product, company, brand, reputation, or customers enough to address it can be much more powerful than the actual mistake.
Instead of writing some long post giving laying out an impassioned argument I think this one quote sums up my position perfectly:
“A life spent making mistakes is not only more honorable, but more useful than a life spent doing nothing.” –George Bernard Shaw