Legal and PR action plan can help businesses respond quickly to online threats to their reputation, says expert

James Griffiths, a specialist in reputation management at Pinsent Masons, the law firm behind Out-Law.com, told more than 70 senior business executives earlier this week that businesses in Northern Ireland have better legal tools at their disposal for protecting their reputation than organisations based elsewhere in the UK.

Speaking at a Northern Ireland Chamber of Commerce and Industry seminar, Griffiths explained defamation law, as well as rules on intellectual property and confidentiality, are among the legal tools available to businesses to address online threats to their reputation.

“Whether actively engaging with customers through social media, or dealing with criticism online, it is crucial that businesses are aware of their legal rights and obligations," Griffiths said. "This is particularly important in Northern Ireland, as the Defamation Act 2013, which requires that corporates claiming defamation in England and Wales must produce evidence of likely or actual serious financial loss, controversially has not been enacted in Northern Ireland."

Because litigants do not have to demonstrate likely or actual serious financial loss to win defamation cases in Northern Ireland, "it is more straightforward for businesses to take action against unfair and inaccurate content online compared to counterparts in Great Britain", he said.

"Companies should have a legal and PR action plan ready to be deployed in order to respond quickly to threats to corporate reputation online," Griffiths said.

Ann McGregor, chief executive of Northern Ireland Chamber of Commerce and Industry, said that while the rise of social media has offered businesses opportunities to develop new marketing strategies, it also presents risks to business users of the platforms.

McGregor said: "The development of social media and the use of the web as a communication platform has made companies vulnerable to negative publicity which can endanger their reputation. Bad reviews, malicious comments and misjudged social media posts can all damage a firm’s digital reputation and commercial value.  It is therefore vital for companies to manage their online reputation as failing to do so can have serious consequences.  In business, reputation is an asset worth protecting."