At least three in 10 executives in Australia believe that their CEO’s reputation has an effect on the company’s market value. 

Multinational PR firm Weber Shandwick surveyed more than 1,700 executives around the world to understand what is expected from a business leader in the modern world.

Managing perceptions has become a rather elaborate endeavour according to the three-part report, which says it is now near impossible for senior leaders to stay under the radar thanks to a highly connected environment. 

CEOs have entered what Weber Shandwick refers to as a “golden age of opportunity” – they are now architects of how the market engages with the company.

Corporate reputation is increasingly being recognised as a function of the top executives’ engagement. This trend is driven by a high demand for content to raise the company’s profile. Senior business leaders are required to participate internally, externally and virtually.

The research further points out that that 81 per cent of global executives believe that it is impossible to build a positive image for the organisation without the CEO engaging at an external level.

Another intriguing notion that the survey indicates is that the participants believed the leader’s reputation contributes to 45 per cent of the company’s reputation and 44 per cent of market value.

Also, around 850 of the executives expected that CEO reputation would matter even more in the near future.

In addition to this, the perception is that a strong leadership image attracts investors, according to 87 per cent of the respondents. Another 83 per cent executives said it helps avert crises and generates positive media attention.

To build a standing within the community, the CEO is now expected to be able to share new insights with the public, participate in the local community, speak at leadership events irrespective of the industry, hold positions of leadership outside the company and take a position on social issues that effect the wider community. 

“Demand for public CEO engagement is high and is only expected to grow as more distribution channels develop and audiences fragment even more,” outlined the report.

The study also looked at gauging the difference between the perception of executives who had socially engaged senior leaders as opposed to those who did not.

Employees whose CEOs participate in social media are more likely than to describe their leaders with several positive qualities. 

The executive surveyed felt their senior leaders had a clear vision for the company, inspired and motivates others, were good communicators externally and internally and ensured that the workplace remained engaging and inspiring for everyone.

This is supported by another study by global reputation firm Brandfog. The study showed that  83 per cent of employees in the US and 73 per cent in the UK respondents believed that the CEO needs to participate in social media, to help foster better relations with customers, employees and investors.

Brandfogs’  research drove home the message that CEO engagement on social media is another way for the company to communicate its values and therefore, create a reputation for itself in the market.