The current age of hyper transparency requires more public presence of corporate managers. In today’s business world, some of the most valued behaviours include taking part in events, being accessible to the media and available in social networks, sharing new insights and trends, playing a visible role in society or featuring on the corporate video channel.
This document includes detailed percentages about different aspects that show the interdependence between CEO reputation, company reputation, and market value and it’s based on the research The CEO Reputation Premium: Gaining Advantage in the Engagement Era, carried out by Weber Shandwick, in partnership with KRC Research, who sought to quantify the value of CEO reputation and measure the importance of CEO engagement. They conducted a survey of more than 1 700 executives that worked in companies with revenues of $500 million or more and represented 19 countries around the world.
Besides, it explains what CEO’s attitudes are more valued, what activities CEOs should do and what are the core competences for a CEO to Gain a Good Reputation.
It also talks about the perceptions of the highest executive power depending on gender. However, apart from these small differences, the reputations of male and female CEOs contribute approximately the same levels to the market value of their firms.
It ends up with some suggestions to maximize CEO's public presence and benefit corporate reputation.
Document written by Corporate Excellence – Centre for Reputation Leadership, quoting the research The CEO Reputation Premium: Gaining Advantage in the Engagement Era prepared by Weber Shandwick in collaboration with KRC Research in in 19 countries around the world from surveys of more than 1 700 executives of companies invoicing 500 million USD or more and released on March 2015.
Management and managerial skills training manual.pdf
Internal, External and Digital Presence of the CEO is becoming more and more important for Corporate Reputation
1. A huge majority (81 % ) of executives report
that it is important for CEOs to have a visible
public profile for a company to be highly regarded.
Visible CEOs are more able to increase and
improve the reputation of their company. Thus,
they have to be present in the internal sphere with
employees, in the external field with customers
and shareholders, and in the digital realm with the
society as a whole.
All this is shown in the research The CEO
Reputation Premium: Gaining Advantage in the
Engagement Era, carried out by Weber Shandwick,
in partnership with KRC Research, who sought
to quantify the value of CEO reputation and
measure the importance of CEO engagement. They
conducted a survey of more than 1 700 executives
that worked in companies with revenues of $500
million or more and represented 19 countries
around the world. The research shows that 45 % of
a company’s reputation and 44 % of a company’s
market value is attributable to the reputation
of the CEO. According to the report, the link
between CEO and corporate reputation is far from
fading, and half of the executives expect that CEO
reputation will matter more to company reputation
in the next few years.
CEO engagement demands
an active approach
CEOs are increasingly required to be present
actively (to watch and listen) rather than in a
passive way (been seen and heard) and need to be
able to build meaningful relationships with their
audiences in all the different fields in which they
participate: events, networks, media, forums, etc.
Participation is specially valued at events outside
CEO’s industry, as well as winning awards or taking
responsibilities in external organizations. Regarding
the social sphere, publicly taking positions on
issues that affect society at large is something that
Thecurrentageofhypertransparencyrequiresmorepublicpresenceofcorporatemanagers.
In today’s business world, some of the most valued behaviours include taking part in events,
being accessible to the media and available in social networks, sharing new insights and
trends, playing a visible role in society or featuring on the corporate video channel.
Strategy Documents
I68/2015
Internal, External and Digital
Presence of the CEO Is Becoming
More and More Important for
Corporate Reputation
Reputation
Insights & Trends
Document written by Corporate Excellence – Centre for Reputation Leadership, quoting the research The CEO Reputation Premium: Gaining
Advantage in the Engagement Era prepared by Weber Shandwick in collaboration with KRC Research in in 19 countries around the world from
surveys of more than 1 700 executives of companies invoicing 500 million USD or more and released on March 2015.
2. Insights & Trends 2
Internal, External
and Digital Presence
of the CEO Is
Becoming More and
More Important for
Corporate Reputation
CEOs have to do. Highly regarded CEOs have a
higher social media participation rate than the
average CEO (24 % vs. 15 % , respectively), and
are approximately three times as likely as CEOs
with weak reputations to participate in social media
(24 % vs. 7 % , respectively). Besides, winning
awards and recognition both for the company or self
also improves corporate reputation.
The research shows that engagement activities need
tobestrategicallyplannedandthoughtfullymanaged
Important activities for CEOs to do
Executives reported significant benefits that accrue
from ‘ including attracting investors (87 %), positive
media attention (83 %), and crisis protection
(83 %). Strong CEO reputation also attracts (77 %)
and retains (70 %) employees. In this regard, it is
clear that the CEO’s reputation boosts and projects
the reputation of the firm when it acts in favour of
the company’s stakeholders.
Company reputations are shaped by a variety
of factors, with quality of products and services
identified as the most important factor by 66 % of
global executives. The least influential reputation
driver is how the company is discussed in social
media (40 % ). In between, we can find financial
performance (57 % ), innovation (48 % ) and
the internal dimension —workplace and working
atmosphere— (42 % ). Further relevant factors
to fully leverage all the upsides. When executives
were asked whether CEO visibility positively or
negatively impacts corporate reputation, an equal
number said it improves reputation (41 %), or can
either improve or harm reputation (41 %). Only
10 % of the respondents think that CEO visibility
hurts a company’s reputation, but when it comes
to taking a public stand on policy or political
issues, executives are more likely to think that it
is inappropriate for CEOs to take a public position
than it is important (48 % vs. 36 %, respectively).
are company industry (50 % ), company leader
reputation (49 % ), what news media says about
the company (45 % ), senior management team
reputation (44 % ), awards and honours (39 %
), political or regulatory relationships (35 % ),
country of headquarters (33 % ) and what is said
about company in social media (32 % ).
This data presents some variations depending on
the industry. Consumer, technology, finance and
healthcare companies are more driven by financial
performance and the quality of their products and
services. Corporate responsibility efforts and senior
management team reputation are among the main
drivers of reputation for healthcare companies;
while finance companies are influenced by the
media; finally, technology and science/engineering
companies are driven by innovation.
“CEOs or
Managing
Directors
need to be
able to build
meaningful
relationships
with their key
stakeholders”
Figure 1: External visibility activities that are important for CEO´s to do
Source: The CEO reputation Premium
Speaks at industry or trade conference 76%
Be accessible to the news media 71%
Be visible on the company website 68%
Share new insights and trends with the public 67%
Be active in local community 64%
Be visible on the corporate video channel 63%
Speak at leadership events not specific to industry 60%
Hold positions of leadership outside de company 53%
Publicly take positions on issues that affect society at large 52%
Participate in social media 43%
Publicly take positions on policy and political issues 36%
3. Insights & Trends 3
Internal, External
and Digital Presence
of the CEO Is
Becoming More and
More Important for
Corporate Reputation
Core competences for a CEO
to gain a good reputation
According to the research, 69 % of the executives
think that having a clear vision for the company is
the most important skill to earn a good company
reputation. Respondents described highly regarded
CEOs as having a global business outlook (58 % ),
being honest and ethical (55 % ) and decisive (55 %
), being a good communicator internally (54 %
), inspirational and motivational to others (51 %
) and having a customer-focused vision (51 % ).
Participants also valued features such as caring that
the company is a good place to work and being a
good communicator externally (50 % in both cases).
Perceptions of the highest executive
power, depending on gender
The survey shows that CEO’s reputation increases
in 2 points corporate reputation when the chief
executive officer is a man; however, it also shows
that the company market value is 4 points higher
for executives with female CEOs. In any case, apart
from these small differences, the reputations of male
and female CEOs contribute approximately the
same levels to the market value of their firms.
Regarding the different public platforms where
it is necessary to strengthen positive perceptions
towards the company by its key stakeholders, female
CEOs are more willing to talk with the media (9
more points) and feel more comfortable doing so
(+6 % ); they are also perceived as being more open
and accessible (+5 % ); and participating more
in social media (+5 % ). Data also suggests that
female CEOs show slightly better communication
and interpersonal skills, with so few women in the
C-suite, it may be harder for the ones at the top to
stay out of the spotlight so they have to reinforce
these capacities and skills.
Conclusion: guidelines to
manage CEO reputation
The report presented by Weber Shandwick and
KRC Research contains useful tips and suggestions
to maximize CEO’s public presence and benefit
corporate reputation:
“A clear
vision for the
company is
one of the
most valued
skills to earn a
good company
reputation”»
Figure 2: CEO reputation matters
Source: The CEO Reputation Premium
Global executives attribute
The interdependence between CEO reputation, company reputation, and market value
demonstrates that leadership is a resource worth investing in and cultivating
of their company´s reputation
to the reputation of their
CEO. on average
45%
Global executives attribute
of their company´s market
value to the reputation of
their CEO. on average
44%
of global executives expect that
CEO reputation will matter
more to company reputation in
the next few years
50%
87%
attracts investors
83%
generates positive
media attention
83%
afford crisis
protection
77%
attracts new
employees
70%
retains current
employees
In addition to enhancing market value, a strong CEO reputation...
4. Insights & Trends 4
Internal, External
and Digital Presence
of the CEO Is
Becoming More and
More Important for
Corporate Reputation
1. Assess the CEO’s reputational premium.
Considering its impact on the reputation of the
company and market value. At this point, it
is important to determine your top executive’s
strengths.
2. Develop the CEO’s “equity” statement. This
defines what the CEO authentically and
distinctively stands for and how that connects
to the larger business goals of the company. It
has to reflect his or her beliefs within the firm.
3. Identify and develop the CEO’s story on behalf
of the company. Once the equity statement has
been determined and developed, the CEO’s
vision can be embedded in a compelling story
that delineates the greater purpose behind the
company.
4. Be an industry advocate. Industry is a leading
driver of corporate reputation today, which
means a successful CEO will help improving
industry reputation by speaking at industry
events and holding positions of leadership in
industry organisations.
5. Leverage the bench. In developing a CEO’s
platform, story, and communications plan,
it is important to consider how other senior
executives fit into the picture and can help
validate the corporate narrative.
6. Bulk up on media training. Being accessible to
the news media is one of the most important
things a CEO can do to be externally visible.
But the opportunity lies not just in being
open to engaging with the news media, but in
being adept at doing so, especially when your
company is in the spotlight.
7. Evaluate CEO’s stance on public policy. CEOs
should be cautious in taking any position. Also,
it is essential that the causes are aligned with the
corporate goals and the opinions of customers,
employees and local communities.
8. Decide which venue is right for the CEO. First,
it is necessary to understand which kind of
activity is the best channel for communicating
the CEO’s message.
9. Develop a solid social strategy. Share your
story and listen to the needs and demands of
your stakeholders; choose the right platform,
minimise risk and control the conversation.
10. Keep reputation drivers at the top of your
to-do list. Know your company’s strengths
and weaknesses and have a measurement plan
in place to track their performance. Include
reputation drivers and metrics in your leadership
dashboard.
11. Bolster CEO reputation among your own
employees. Build trust by communicating
plans for the company to show that the CEO
understands the organisation’s best interests and
is working to do the right thing for the company.
12. Don’t view CEO humility as a weakness. It
is more and more considered as a desirable
quality for CEOs. It is also a trait that the global
media has tuned into after the crisis caused by
excessive egos.