Eventually, someone will find a reason to criticize your company. It could be an unsatisfied customer, a disgruntled ex-employee, a vendor in dispute, or a stealth critic. The criticism will be less damaging if handled properly. Here are a few tips:

Do:

• Continue to monitor the web frequently for damaging criticism and venting. Many companies are oblivious to criticisms/complaints harbored by others. Monitor the web to make sure that the issue has not developed online ‘legs’.

• If you spot damaging complaints/criticisms and have an opportunity to post a comment, by all means, respond. A thoughtful, articulate, response will work far better than a jack-hammer legal threat. Offer to resolve in an amicable manner, the situation giving rise to the complaint.

• Regularly examine your firm’s practices regarding complaints, gripes, and grievances with the goal of diffusing them at the onset. Limit heavy-handed responses, such as threats of legal action, dismissal or termination.

• Create a mechanism to have dialogue with your company’s major stakeholders by establishing risk-free channels for employees, vendors, customers and stockholders to air grievances. One solution might be to set up a secure website or blog where they can speak openly.

• Invest in protecting your reputation and brand by training your managers/representatives in detecting and addressing complaints/concerns as they arise. Discuss problem areas before they get out of hand. Also, incorporate language into contracts, policy manuals, on your website and in other appropriate forums to address recurring problem areas.

Things Your Company Should Not Do

• It is not advisable to simply ignore online venting — the consequences can be expensive and damaging. Depending on the extent and exposure, online complaints can tarnish the long-deserved reputation that your firm has earned, can cost your company sales, and can ruin your company’s brand.

• Do not make your first response a legal one. Legal actions are expensive and garner even more negative publicity. Also, the courts are relatively unsympathetic to online complaints and criticisms — even when the complaining party makes inaccurate statements. Many courts interpret these rantings as privileged speech.

Yes. This stuff is frustrating. Unfortunately, it is now here to stay. Get used to it. Stop fighting it, and starting managing it…like the rest of us have to do. Isn’t Web 2.0 fun?

Steve

It is losing battle to coverup bad behavior.

Their LPs should take away the money for not doing proper job with entrepreneurs. All “me too VCs” out there, behave well it is good for the eco-system.

Under the CDA, sites are not liable for third-party comments- at least according to 95% of the courts that have ruled on it.

And of course, Hercules has just turned a single point of data few are likely to read into a major piece of negative publicity on the firm. Doh.

They should have just ignored it, or gotten their portfolio companies to bury it with positive reviews.