A CEO’s reputation is equivalent to the company’s reputation; this is a relationship well understood in the business world today. After Adobe’s CEO skipped a question about their highly variable pricing strategy in Australia and USA, public opinion was strong. The CEO’s failure to respond to the question led to lack of trust in the brand.
According to a letter written by Warren Buffet to his shareholders in 2010, his company is willing to lose money, but he can in no way bear the problem of a troubled reputation. As is well known, Warren Buffet is one of the most well-respected Gurus in the business world.
The theory holds good for different professions including lawyer reputation and doctor reputation management. Being responsible citizens around the world, all professionals must keep up their reputation, especially when handling negative reviews and abuse.
Communication and CEO reputation
Communicating is always a two-way process. If a CEO shies away from the public and defers sharing information and news with the media, there is a chance for miscommunication. The press or competitors will may a whole new angle to the situation that might be far from the truth and present that to the world. Such negativity may cost the company overall.
Some people claim that negative publicity is also publicity and hence the kind of advertising does not matter. What they forget is that any negative publicity will attach to the whole company, affecting the reputation of the entire organization.
A research study conducted by HBR established that around 45% of a company’s reputation is based on the CEO’s reputation, and 44% of the market value is dependent on the CEOs reputation. The factors go on to show how important the CEO’s reputation is for the firm.
Enhancers for CEO reputation
Many factors could improve a CEO’s status as some of the most prominent and critical elements that could quickly be adopted are:
- Being present in social media. Social media presence can create a fantastic rapport with the industry and with the rest of the corporate world.
- Being transparent helps a lot. A CEO who has a good reputation and is open with regards to the misfortunes that might have occurred in his career or the company is lauded and appreciated generally.
- Since the CEO is one person people look up to, preaching ethical principles and highlighting how his own company is following standard rules helps bring the company in a positive light and gains investor attention as well.
- The CEO should be approachable; this will ensure a friendly demeanor and ensure that people find it easy to communicate. A friendly CEO portrays the organization as the perfect workplace.
- The CEO needs to be creative and proactive. When the CEO is innovative, his tenure is never cut short due to monotony. Creativity also makes the CEO famous for his out-of-the-box thinking and ensures he is known as an innovative leader.