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Management needs to model
appropriate behavior and also to make policies known. You have to work proactively to set an environment of respect and dignity where rumors and malicious gossip isn't tolerated. This means you can't be doing it yourself.
Management can also work to build a culture that’s supportive rather than overtly competitive. Putting proactive emotional intelligence and anti-mobbing programs in place show positive intent. To see an excellent pro-respect statement –
State of Oregon, Dept. of Environment Quality ANTI-MOBBING policy NO. 50.110, at http://www.mobbing-usa.com/resources1.html .
People are also less inclinced to gossip if they know there are avenues for addressing grievances within
company.
It's important not to ignore incidents of rumor and gossip. Ignoring it is like agreeing to it in
minds of employees. It's generally one of those things that doesn't go away.
Rumors must be dealt with immediately. Get
two people together who are involved (the one making
rumors and
one being gossiped about) and talk it out. If you suspect someone of being a chronic gossip, go with your instincts and check it out. Then address it.
It's human nature to test
limits, so it's important that you publicly model what you've proclaimed. The first time you let something slip, your credibility goes down. People think "she doesn't mean what she says." It's far harder to regain lost ground than to enforce policies in
beginning.
Create and work to maintain an atmosphere of respect where everyone is concentrating on their work and feels fairly well-informed about what's going on.

Susan Dunn offers individual and executive coaching, and offers workshops, presentations, internet courses and ebooks on emotional intelligence