The online reputation of a C-Level executive has always been critical to a company’s success. Nonetheless, many chief executives concentrated their efforts on its internal operations rather than its public image. CEOs must now guard and manage their reputations in ways they have never had to before in the era of nonstop media and round-the-clock Facebook, Twitter, and Yelp access. Since they are the company’s face, they need to be visible, and how shareholders or consumers view them will affect public sentiment and profitability. CEO advocacy is an activity in which a CEO’s reputation extends beyond the business and the goods or services it offers. According to “The CEO Credibility Premium: Gaining Advantage in the Engagement Era,” a study by Weber Shandwick, a New York City-based public relations company, “in today’s business climate, it’s undeniable that a CEO’s reputation matters to an organization’s success and is one of its most important and strategic assets.” According to global executives who took part in one of that firm’s latest studies, the CEO’s image accounted for 45 percent of their company’s overall reputation. Those same executives reported that the CEO’s vision was responsible for 44% of their company’s market value. CEO credibility is a personal and corporate commodity that online Executive MBA students can learn to nurture and value almost as much as the financial bottom line because it significantly impacts the firm’s standing.
Why CEOs Need to Manage Their Reputations
According to some experts, reputational risk can pose a competitive challenge to a company today, with business leaders under constant scrutiny. Reputational risk refers to the possibility that negative press, public opinion, or uncontrollable incidents will harm a company’s image, thus impacting its value.
Reputational danger is akin to a natural disaster. It comes out of nowhere, reshapes the company’s environment, suffocates sales, instills terror, and creates havoc. Unfortunately, it’s often misunderstood or confused with other forms of corporate risk.
The first step in handling reputational risk is for CEOs to take ownership of their narrative. The following are some fundamental tenets for achieving that goal:
- Having a strong company vision is essential.
- Motivating and inspiring others
- Honesty and ethics
- Internal communication is a skill that should be honed.
- Concern for the well-being of workers and the ethos of the company
- Having a global market perspective
- External communications and public relations are essential.
- Making a decision
- Maintaining a customer-centric mindset
Today, most of a CEO’s “narrative” takes place on social media, and experienced executives recognize the importance of mastering online identity management.
An Eye on Online Reputation
The prominent curators of a company’s or executive’s public persona are no longer investors, analysts, or the financial media. The public will be more interested than ever before in the digital era. Even companies with little direct interaction with customers can discover that their employees have strong feelings about their CEO, which they express on any available online platform.
According to Weber Shandwick’s “CEO Reputation Premium” survey, “what a CEO says or doesn’t say, where and when they say it, and to whom they say it increasingly makes or breaks reputations and jeopardizes job security.” Tony Hayward, the former CEO of BP, was used as an example in the study. Hayward was quoted as saying after the 2010 Deepwater Horizon oil spill, “There’s no one who wants this thing over more than I do.” I’d like to reclaim my life.” The last sentence quickly went viral on social media, YouTube, blogs, and via word of mouth. It also made international headlines and was repeatedly broadcast on television news programs. Hayward was fired, and his handling of the situation serves as a cautionary tale for today’s executives. Some CEOs are skeptical of online interaction in the digital era because of the high degree of scrutiny, while others recognize that social media can benefit executives.
According to Weber Shandwick, “CEOs have reached a golden age of opportunity to share their business stories.” “They rely on conventional media even less to profile their biographies and represent their potential strategies. Without negotiating with the media, CEOs will now take their storytelling material directly to stakeholders.”
Reputation Management Strategies
Whether online or offline, managing a company’s image is a high-stakes undertaking for which CEOs might benefit from some practical advice. I compiled a list of strategies that CEOs can employ in the current knowledge environment, including:
- Be visible and active
- According to the experts, investors and customers demand accountability, and executives are aware of the trend, citing Weber Shandwick’s research showing that 81 percent of CEOs worldwide agree that having a clear public profile is critical. Since the public expects executives to interact with the press, staff, and the general public, executives should hone their communication skills and gain confidence speaking in public. External exposure, both locally and online, allows CEOs to share their thoughts and thought leadership with conventional media and social media followers.
- Own your domain and your name
- CEOs that hold the dot-com domain for their titles, as well as the dot-net, dot-org, dot-info, and other similar domains, guarantee that only they can publish content on sites associated with their names. Even for CEOs who have no imminent intentions to use a specific site, they should claim their name on social media, from Facebook to Reddit, which is crucial. Many who do not comply risk having their names taken by someone else, who will then post whatever they want under the CEO’s name. Set up Google Alerts for both the business and the CEO’s name to keep track of online progress.
- Tweet responsibly
- Any statement made in a tweet may be shared in various ways, with or without permission. Before publishing something, CEOs should consider how their tweets, articles, or photographs would be viewed.
- Be careful about behavior
- Negative news, such as an indictment or a public humiliation, will not only overshadow a company’s or CEO’s online search results, but it can also become what they are remembered for, for years. Staying out of trouble is always easier said than done, but don’t underestimate the importance of staying out of trouble.”
- Engage with employees
- Internal communication will help build goodwill and transform workers into the brand’s—and the CEO’s—most ardent supporters. Finally, I recommend always behaving in a legal and ethical manner. Fake online reviews, dubious SEO techniques, and other unethical behavior may lead to problems down the road, especially for CEOs who engage in advocacy outside of the C-Level.
Beyond the Boardroom
Some CEOs are taking advantage of their growing celebrity to speak out on topics such as pay equity, climate change, marriage equality, immigration, gun control, and sexism, as well as policies that impact their industries. Their reputations influence the way people respond to their activism.
Weber Shandwick and KRC Research collaborated on a national study of public opinion on business leaders’ support on social and political issues. “CEO Activism in 2018: The Purposeful CEO,” their research found:
- CEO advocacy is now more well known in the United States than it was previously. People are generally optimistic about it and see it as having the power to affect public policy.
- According to the report, 42% of those polled had heard or read about CEOs taking positions on contentious topics, a substantial increase from the 37% who were aware of CEO involvement in 2017.
- Nearly half of respondents (48%) believe CEO advocacy has influenced government policy, up from 38% the year before.
- According to 39% of respondents, CEOs have a right to speak out on crucial topics of the day. A slightly higher percentage (42%) disagreed.
- When CEOs speak out on issues like work or skill preparation, fair pay, and sexual harassment, people like it. CEO comments on drug legalization and abortion were met with skepticism by respondents.
- CEOs should undoubtedly speak out in support of their company’s ideals, according to 77% of respondents.
Whether inside or outside the boardroom, protecting one’s online reputation is a personal and professional imperative for today’s C-Level executives. Individual jobs and company performance can depend on how well executives handle and respond to reputational risks and public opinion in the digital age.