The voice of the CEO plays a fundamental role in representing a company. He or she is not only the primary decision-maker but also the spokesperson of the organization, whose words and posture directly affect the public image of the company. In an increasingly connected world where public perceptions are rapidly shaped by online and media interactions, what a CEO says (or does not say) can significantly influence brand value, customer trust, and the internal culture of the organization.
A CEO is seen as the reflection of the company's culture, values, and mission. Therefore, their communications are not merely individual but rather institutional. The messages he or she conveys—whether in interviews, on social media, or in internal communications—can set the tone for the external perception of the company.
When a CEO speaks in a way that aligns the organization with ethical principles, diversity, inclusion, and social responsibility, these qualities end up being associated with the brand as a whole. Similarly, a statement that demonstrates disconnection, prejudice, or controversy can shake the company's reputation.
Recently, the CEO (now former CEO) of a major company in Brazil publicly expressed a statement laden with prejudice, reflecting a distorted view of the role of women in leadership positions. Despite the public apology, the reputational crisis has been established and remains active on social media. We have a clear picture of how a prejudiced statement shook society's trust in the respective company, given that the voice of a CEO reflects the company as a whole.
Prejudice against women in positions of power, including CEOs, reflects an outdated mindset that refuses to recognize the real value of diversity and inclusion in the corporate world. Leadership, regardless of gender, should be based on competence, vision, and ethics. More than“God forbid a female CEO,”the corporate world needs to say “God forbid a society that does not value human competence, regardless of who demonstrates it.”.
A recent study by Vila Nova Partners revealed that only 5% of CEO positions in Brazil are held by women, a number that was 4% last year. Despite the slight growth, we can see that the path toward combating prejudice and valuing human competence is still a long way off.
One of the main consequences of the reputational crisis resulting from the statement by the now-former CEO will be the loss of credibility in the market. When the leader themselves is the cause of the crisis, this trust is quickly lost. This can lead to a drop in stock value, investor flight, and the loss of contracts and strategic partnerships. After all, what company would want its brand associated with an organization in crisis?
Furthermore, the media and the public tend to amplify the former CEO's statement. Social media and communication channels become arenas where the reputation of the CEO and the company is questioned, and the consequences can be long-lasting. Boycotts, devaluation campaigns, and even protests may also arise.
In summary, when a CEO is responsible for a reputational crisis, the company will face a series of challenges. Recovery will depend on the ability to respond quickly and effectively, as well as attempts to restore trust through concrete actions and smart structural changes—not just marketing for show.