The role of a CEO in his or her company’s reputation is not to be taken lightly. A CEO with a strong reputation attracts new employees, retains current employees, generates positive media attention and can attract investors.
According to a report from Weber Shandwick*, 60% of a company’s market value is attributed to its reputation. A CEO’s reputation contributes on average to 45% of a company’s reputation and to the reputation of its Executive Board. Furthermore, 44% of a company’s market value can be attributed to its CEO. We can conclude that the reputation of a CEO can have a major impact.
However, not every topic is an ideal opportunity for communication and CEOs should heed caution when taking a public stance on a policy or on politics, as this is often deemed inappropriate.
Now, how can CEOs build on their reputation? Through Thought Leadership, in other words by being recognised as an authority in their field. There are many ways for CEOs to strengthen their authority:
For a CEO, keeping a low profile is no longer a preferable option in the current highly connected and transparent market environment. A reputation can be damaged because of the high amount of opinions that spread in today's fast-paced media.
Good reputation pays, bad reputation costs
Through social media, blogs and other online channels, critics have access to a broad audience and can quickly and effectively lash out at your business. More than ever, a CEO plays an important role in the reputation of a business. A CEO has the authority to say what a company or a brand stands for, and to give an effective response and dispel rumors with a clear message.
General Manager duomedia
*Weber Shandwick, The Company Behind the Brand: In Reputation We Trust, 2012
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