In the past most of CEOs focused the majority of their energies on the organization rather than their external reputation. Today in the world of social media like Facebook, Twitter, and Yelp access, CEOs need to guard and manage their reputations in ways they never had to before. CEOs are like face of the company and both public opinion and profitability may depend on how customers perceive them. In today’s business world, CEO reputation is directly connected to an organization’s success because fifty percent of their company’s reputation or market value depended on that of the CEO.
Reputation management is related to negative publicity, public perception, or uncontrollable events to have an adverse impact on a company’s reputation and it directly affects CEO reputation management. It like an earthquake which strikes without warning, shifts your corporate landscape, swallow’s revenue, sparks fear, and causes chaos. According to reputation management all the CEOs under constant scrutiny, reputational risk can pose a strategic threat to a business.
Some basic tenets for accomplishing that goal include. A CEO can manage reputational risk by maintain some basic tenets like having a clear company vision, being inspirational and motivational, exhibiting honesty and ethics and practicing good internal communications. He should care about the well-being of employees and company culture by having good external communications and public relations.