Preserving Heritage and Reputation: Understanding Corporate Defamation

As in all industries, the preservation and promotion of heritage building is dependent on the positive perception of the public and other organizations involved in the industry. For instance, if there is a mass negative reaction to a building restoration, or to a particular heritage company’s services, it could adversely affect both the success of specific heritage projects, and/or the funding that the heritage company might receive.

Defamation is a false statement that harms the reputation of an individual or diminishes the esteem of an individual in the eyes of a third party. The negative effects of defamation on the reputation of a company would likely be similar to the effects of defamation on the reputation of an individual. In the context of corporations, defamation can discourage customers from purchasing goods or services or even dissuade potential customers from connecting with a defendant company. This concept is especially important in the context of heritage companies that are usually involved in a small niche market. A single negative review could therefore have drastic consequences for a heritage company.

A defamatory statement made about a company member can have the following consequences: There are two differentiating factors regarding the defamatory statements made about a corporation versus about a natural person: In some circumstances, a company can sue for defamation. The specific claim for which a corporation might sue is the tort of defamation. The tort of defamation has essentially the same meaning as defamation, but its essentially invoked by claiming that defamatory content concerned a legal entity such as a company rather than an individual. The law allows companies to pursue defamation actions in order to protect the company’s reputation or to protect its other members (such as its employees and its investors). For example, an employee of a company could file a lawsuit for defamation on the basis that defamatory statements impact the personal and professional reputation of the employee. The defamation could affect the employee’s current or future employment status and affect the employee’s personal relationships. Because the employee can be affected in a way similar to the company, the company can independently pursue a defamation action. The subject matter of the alleged defamatory content must be clearly related to the operations and activities of the company. This means that the defamatory statement must be focused on the company’s activities and not on unrelated activities of an individual within the company. The specific defamation lawsuit that a company can pursue will depend on the nature of the defamatory statement. The possible causes of action that a company can pursue include:

In a defamation action, a company must first identify potential defamatory statements. If statements are made on an online forum, a company can use an online identifier search tool or a social media profile search tool to identify defamatory statements. A company can also seek removal of the defamatory content by filing an application for a restraining order with associated documentation. If a company believes that it has been the subject of defamation, a company can issue a letter demanding the removal of the defamatory content. The company can also issue legal proceedings.

The primary examples of defamation regarding companies can be found in a number of cases involving specific public figures. The most common example involves two cases that concern the Canadian based ecommerce company Shopify Inc.

Not only can the award of a society designation such as UNESCOS’s World Heritage designation be revoked on the basis of inappropriate conduct, a negative perception of the company can result in loss of revenue and also an adverse effect on the members of the company. The preservation of the heritage of Canada can be affected by the actions of companies involved in the heritage preservation sector, so if the companies involved in the sector are not protected from defamation, the heritage of Canada could face an ongoing threat.

For more information on defamation laws, you can visit Wikipedia.