Businesses are now opting to use Web 2.0 applications such as social networking sites, instant messaging and corporate blogs. But should companies really integrate such technologies into the workplace, or are there too many hidden dangers?

Are Web 2.0 communications an essential part of modern business?

Many corporations have jumped at the opportunities presented by Web 2.0 applications. Consultant KPMG and researcher the Economist Intelligence Unit carried out a survey of 472 executives around the world and found that about 70 per cent of them believe that Web 2.0 tools will help employees to work more efficiently.

Instant messaging is less intrusive than a phone call and, unlike email, is immediate. Business social networking sites help develop contacts, and blogging can reveal a company’s personality and improve marketing, branding and PR.

Is it all good news or are there associated risks and liabilities?

Although Web 2.0 applications can all be used as valuable business tools, IT managers must ensure that workplace internet policies are prepared.

Corporate rumours, derogatory comments about colleagues and negative PR are all risks associated with online communications. Other potential problems include harassment, the leaking of confidential information and damage to company reputation. In short, there are many potential perils to be faced by employers as a result of online employee communication.

IT managers need to be aware that a company can be held responsible for the statements made by an employee, just as if the comments had been made by the company itself. Such a situation is known as vicarious liability, which may arise, for example, where a company sets up a blog as a marketing initiative, through which employees post material on behalf of the firm.

The company may still be liable where a blog is hosted or funded by the company, even though an employee might not be writing “on behalf of the company”. Defamatory statements can result in damage to a company’s reputation or brand and this is one of the greatest risks associated with corporate blogs.

How can I reduce the risk from Web 2.0 applications?

When communicating, employees must ensure they do not make reference to a third party’s trademarks, copy content, graphics or music. Such actions carry a risk of infringing the intellectual property rights of other organisations and could subsequently put the company at risk of being held liable.

It is important that companies make it clear to their employees that blogs are not the appropriate forum in which to raise statutory grievances. Where corporate blogs do express statutory grievances, the employer is required to follow a particular procedure.

If the employer does not notice the blogged grievance and the statutory procedure is not followed, the employee could be entitled to a significant increase in any damages awarded in an employment tribunal.

Even simple emails can cause employers sleepless nights. For instance, a court recently decided employers can be liable for sexual harassment as a result of the circulation of distasteful jokes.

Social networking sites can also act as a platform for anonymous racial/sexual discrimination because of their lack of background checks and some corporate use policies ban the accessing of such sites.

Should I be aware of other productivity issues?

A further troublesome issue for both employees and employers is the addictive nature of social networking sites. Some companies have even imposed “Facebook time” for employees. Employers have also been known to delve into personal profiles to check the character of job applicants, even though such use is potentially discriminatory.

However, the most dangerous aspect of applications such as Facebook or pe rsonal blogs is the damage that can be caused to a business through negative comments posted on such pages.

In February 2007, an Asda employee was sacked for creating a Facebook group which portrayed Asda in a negative light. And in 2005, a Waterstone’s employee was dismissed for being critical towards his boss and the bookseller on his personal blog. He was sacked for gross misconduct, though later successfully appealed against the decision.

But it is important to remember that with regards to both the Asda and Waterstone’s cases, the damage had in effect already been done. Bloggers are now largely remaining anonymous and actions against employee bloggers writing in the private environment are likely to remain few and far between.