One obvious response from businesses will be to ask employees not to blog about work and add clauses to contracts to this effect. Of course many already have clauses to address confidentiality.
A more courageous approach is to engage with the blogging employees - it won't work in all cases, if the employee refuses to 'engage' of course it takes two to tango. The potential of an independent blog by an employee is clear:
This is not to say there are equally significant risks and dangers, but when you get a reputation for having thin skin, unable to take criticism, you erode trust. Firing bloggers, who, if they are becoming an issue are by definition well connected and able to get rapid publicity, is unlikely to help.
Curiously, Jen is still 'powers Blogger', owned by guess who? Google.