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Some blue-chip companies are using their corporate blogs to try to alleviate shareholder concerns, but the effectiveness of these blogs are still in question.

General Motors Corp. (GM) and General Electric Co. (GE), two Dow components under different levels of financial duress, have posted messages on their corporate blogs in recent weeks in response to concerns about their financial performances.

GM has acknowledged on its "FastLane Blog" that even though substantial doubts surround its viability, it still believes bankruptcy isn't the best option for its future.

"We understand all too well the challenges we face at this time and in this truly difficult economy," Steve Harris, vice president of global communications, wrote on GM's blog last week. "But we're not giving up, we're not giving in and we sure aren't planning on going away."

Conversely, GE has used "GE Reports" as a medium to respond to the recent credit rating downgrade from Standard & Poor's as well as refute claims that it will be required to raise new capital in the near future.

"This is pure speculation, is inaccurate and is not based on any input from our company," GE wrote on its blog last week. "We are committed to continue to enhance disclosure and transparency for our investors in the future."

But according to a study by Forrester Research late last year, only 16% of online consumers who read corporate blogs say they trust them. And corporate blogging is seen as less trustworthy than broadcast, print media and direct mail and email from companies, the study says.

Skepticism of blogs combined with the fact that people don't always believe everything a company says helps explain why people are less likely to trust corporate blogs, according to Josh Bernoff, vice president and technology analyst at Forrester as well as author of the corporate blog study.

"If people are suspect of your position, then the blog probably can't help that much," Bernoff says. "The blog is just one of the many tools companies use in the pursuit of public opinion."

Corporate blogging is a relatively new phenomenon that has started to gain traction among larger companies throughout the last 12 months. A study by PR firm Burson-Marsteller found nearly 15% of Fortune 500 companies actively maintain corporate blogs.

In the current Facebook and Twitter era, companies are realizing the benefits to keeping the lines of communication open with consumers and shareholders.

While independent bloggers are generally free to express their opinions without limitations, media observers say corporate blogs need to express a voice within company guidelines that isn't already presented in press releases.

"The number one rule of a good corporate blog is too make sure that it's not a rehash of a press release," says Andy Sernovitz, chief executive of the Blog Council, which helps companies, including GM and GE, incorporate social media into their business models. "It has to be a genuine conversation with readers."

Bob Lutz, GM vice chairman of global product development, was a frequent contributor to the FastLane Blog before announcing plans to retire at year's end. He offered strong viewpoints about GM's new cars and trucks, including the development of the Chevrolet Volt, a batter-powered car GM hopes to launch in 2010.

Lutz, 76, wasn't available for comment, but spokesman Dee Allen says Lutz has used the platform to correct factual errors, statistics and speculative opinions about GM.

"He sees it as an excellent means of direct communication with both interested media who tap into the blog and many non-journos who get the information directly from him without the filter of established news outlets," Allen wrote in an email.

Gary Sheffer, GE's executive director of corporate communications, says GE Reports represents another channel that supplements traditional means of investor communication. The blog, which launched last October, allows GE to correspond with investors in real-time during this highly-speculative economic time, he says.

"It's a great tool you want to have ready when you need to play some defense," Sheffer says.

-By Steven Russolillo, Dow Jones Newswires; 201-938-2205; steven.russolillo@dowjones.com