Defamation is often discussed in the realm of false statements written or said about public personalities like politicians or celebrities. In the world of business, we’re familiar with businesses disparaging one another to seek a competitive edge. However, the ubiquitous nature of social media and the ability to easily reach a broad audience with the press of a button has introduced a new layer to the problem of defamation: employees can now injure their employer’s reputations by making statements about them or their clients. Technology has expanded the interventions and actions needed to mitigate risks, and employment lawyers can help.
The first step to addressing the problem of defamation is understanding what it is. Defamation is a false statement that one person or entity makes about another that causes harm to their reputation. If the statement is written – even online in an email or social media post – it is considered libel, while oral false statements are considered slander. Both are legally actionable: If the subject of the statement can prove both its falsehood and the damage it has caused, the victim can seek compensation.
Importantly for businesses, defamatory statements employees make about them can impact their reputation among clients, the public, and potential recruits, and businesses may even be held liable for defamatory statements made by their employees if they were made within the scope of their jobs.
There are steps you can take to protect your business against the impacts and liabilities of defamation. These include:
- Include training on defamation as part of your hiring practices and include clear policies on appropriate behavior – including online behavior – in your employee handbook.
- Establish consequences for making defamatory statements.
- Conduct audits of internal communications to ensure compliance with company policies
- Enforce disciplinary measures against those who violate the established social media and communication rules.
- Purchase an insurance policy that specifically includes coverage for defamation claims.
- Review your established policies with an experienced defamation attorney.
- Be prepared to issue apologies, retractions, and responses should defamatory statements be made.
The internet and social media are powerful tools that benefit businesses and individuals alike, but they can also be abused. Businesses need to educate themselves about the risks of defamation and take proactive steps to protect themselves.
