The CEO’s voice plays a fundamental role in representing a company. They are not just the key decision-maker, but also the spokesperson of the organization, whose words and posture directly influence the public image of the company. In an increasingly connected world where public perceptions are quickly shaped by online interactions and media, what a CEO says (or doesn’t say) can significantly influence brand value, customer trust, and internal organizational culture.
A CEO is seen as a reflection of the company’s culture, values, and mission. Therefore, their communications are not merely individual but rather institutional. The messages they convey – whether in interviews, social media, or internal communications – can set the tone for external perceptions 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, speech that demonstrates disconnect, prejudice, or controversy can undermine the company’s reputation.
Recently, the CEO (now former CEO) of a major company in Brazil publicly expressed a statement loaded with prejudice, reflecting a distorted view of the role of women in leadership positions. Despite the public retraction, the reputational crisis is ongoing and prevalent on social media. We have a clear example of how a prejudiced statement shook the public’s confidence in the respective company, as a CEO’s voice is a reflection of the company as a whole.
Prejudice against women in positions of power, including CEOs, reflects an outdated mindset that refuses to see the real value of diversity and inclusion in the corporate world.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 exercises it”.
A recent survey by Vila Nova Partners revealed that only 5% of CEO positions in Brazil are held by women, a number that was 4% last year. Even with the small growth, we can see that the fight against prejudice and the appreciation of human competence is far from happening.
One of the main consequences of the reputational crisis resulting from the speech of the current former CEO will be the loss of credibility in the market. When the leader himself is the cause of the crisis, that confidence is quickly lost. This can lead to a drop in stock value, investor flight, and loss of contracts and strategic partnerships. After all, which company will want to have its brand associated with the organization in crisis?
Furthermore, the media and the public tend to amplify the former CEO’s speech. Social media and communication outlets become arenas where the CEO’s and the company’s reputations are questioned, and the consequences can be 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 on attempts to restore trust through concrete actions and smart structural changes – not just a marketing show for outsiders to see.
