According to legal publisher Sweet & Maxwell, in the last 12 months the number of reported defamation cases has risen by 32 per cent and one fifth of those actions have been brought by companies.

This is no surprise as the treacherous economic climate means businesses will fight tooth and nail to protect their reputations, particularly where untruthful and dangerous suggestions of insolvency are concerned.

The immediacy of new media also means that these sorts of rumours are more prevalent and able to spread more quickly than in the past.

But is legal action the best response to defamation and libel, and is it the most effective way to repair the damage done to a company’s reputation?

Even where the case is apparently clear-cut, litigation can be a slow and expensive process and will not deliver immediate results, but a well-executed PR strategy can restore a company’s reputation with the same immediacy with which it was damaged.

In the aftermath of a libel incident it is essential not only to correct inaccuracies but to make people aware of the truth and beyond that, to start circulating positive stories about the company, communicating more buoyant messages and supporting its overall aims.

If a company’s reputation has been damaged unfairly there is still legitimate recourse to take legal action but a two-pronged approach combining this with a proactive PR campaign will be more successful in repairing the damage quickly.

ENDS