Managing Stress for Success

Motivational Speaker Carole Spiers
on malicious network gossip

The new, social-networking sites represent a startling new medium for unofficial public relations.

At best, they can be a highly favourable environment for promoting a company’s profile, especially a less-known one. If the wittiest and most popular correspondents mention that they work for a certain organization, this gives it an air of exclusivity and chic that is hard to replicate in the mainstream media.

But any corporate lawyer is going to be looking hard at the other side of the picture - the huge outlet for defamatory comment about the company, posted by disgruntled employees, and whether these amount to libel and are actionable.

A case for litigation - or breach of contract ?

To be actionable as libel in the UK, a malicious statement has to be read by a third party. Corporate libel rests on a company 'being brought into disrepute' - in other words, read by people whose opinion can detrimentally affect the company's fortunes. Although this could include potential recruits, the damage would be hard to prove. In the case of a public company, you would be on stronger ground because almost any reader might be classified as a potential shareholder.

If litigation is not an option, the company may be able to demonstrate a breach of contract by damaging the bond of trust and confidence that an employee automatically commits-to. Remember - however serious the allegations, the employee must still be given a chance to justify the action and to prove that it was not intended to defame.

Defamatory postings online - Summary

• Social networking sites can seriously affect a corporate image
• Libel may be hard to prove, and most readers are not identifiable
• It could be actionable as a breach-of-contract case

Another key insight from Carole Spiers, International Leading Authority on Corporate Stress,
Motivational Speaker and BBC Broadcaster.