Reputation needs to be strong and stronger
One of the findings from our study on the CEO Reputation Premium has to do with the perceived strength of respondents’ corporate reputations. Less than 4 in 10 global executives (38%) said that their corporate reputations were “very” strong. The fact that another one in two (48%) said that their company reputations were “somewhat” strong was not exactly a ringing endorsement of reputation resilience. When crisis strikes, those companies with “somewhat” strong reputations are likely to falter and have trouble receiving the benefit of the doubt when they most need it.
Perhaps for this very reason, one of the benefits of cultivating a highly regarded CEO reputation is its ability to protect reputation in crisis. Over 8 in 10 global executives (83%) report seeing the value of positive CEO reputation as a shield against harm. Undoubtedly highly regarded CEO reputations are critical to shoring up those companies with weak reputations when issues suddenly arise. Although companies are quick to say that their reputations are priceless, they need to price out what happens when they have not invested in them. It is a risk that should not be taken.