CEOs, Corporate Reputation, Trust, Crisis. Each is intertwined and has its own role in the success of any company or brand. When your CEO behaves badly in his own time, how does that affect your company’s reputation? Does it require crisis management? Attorney Michael W. Peregrine, in a NY Times post, says yes, and it is the board’s responsibility to hold their leadership responsible for their actions, even if the bad behavior happens off the clock.
“CEOs behaving badly” falls into the category of crises in which the reputation of a company or brand is at stake from criminal or civil charges, allegations of negligence or wrong-doing, social media rumors, or innuendo. At CommCore we recommend that any company’s leadership develop its own version of our Reputation Protection Model, or RPM©. It’s a methodology that goes beyond preparation and response; it adds a lens that views crisis preparation as an investment in an organization’s long term reputation in the eyes of its most important stakeholders. When company leadership displays questionable behavior, there’s a set plan of action in reviewing and assessing the next steps.