StartArticlesThe voice of the CEO represents the company

The voice of the CEO represents the company

The voice of the CEO plays a fundamental role in representing a company. He or she is not just the main decision maker, but also the spokesperson of the organization, whose words and posture directly affect the company's public image. In an increasingly connected world where public perceptions are rapidly shaped by online interactions and media, what a CEO says (or doesn't say) can significantly influence the brand value, the trust of customers and the internal culture of the organization

A CEO is seen as the reflection of the culture, of the company's values and mission. Therefore, your communications are not merely individual, but, yes, institutional. The messages that he or she conveys – be it in interviews, social networks, or in internal communications – they can establish the tone of the company's external perceptions

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. In the same way, a statement that demonstrates disconnection or prejudice or controversy can damage the company's reputation

Recently, the CEO (now former CEO) of an important company in Brazil publicly expressed a phrase loaded with prejudice, that reflects a distorted view of the role of women in leadership positions. Even with the public retraction, the reputational crisis is established and ongoing on social media. We have the portrait of a prejudiced speech that shook society's confidence in the respective company, since the voice of a CEO 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Prejudice against women in positions of power, including CEOs, reflects an outdated mindset, that refuses to see the real value of diversity and inclusion in the corporate world. The leadership, regardless of gender, must be based on competence, vision and ethics. More than "God save me from a woman CEO, the corporate world needs to sayGod deliver me from 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, number that was 4% last year. Even with the small growth, we can see that the path 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, this trust is lost quickly. This can lead to a drop in the value of shares, the flight of investors and the loss of contracts and strategic partnerships. After all, which company would want to have its brand associated with an organization in crisis

Moreover, the media and the public tend to amplify the speech of the former CEO. Social media and communication vehicles become arenas where the reputation of the CEO and the company are questioned, and the consequences can be long-lasting. Boycotts may also arise, devaluation campaigns and even protests

In summary, when a CEO is responsible for a reputational crisis, the company will face a series of challenges. The recovery will depend on the ability to respond quickly and effectively, besides the attempt to restore trust through concrete actions and intelligent structural changes – not just a marketing ploy for the English to see

Patricia Punder
Patricia Punderhttps://www.punder.adv.br/
Patricia Punder, lawyer and compliance officer with international experience. Compliance professor in the USFSCAR and LEC post-MBA – Legal Ethics and Compliance. One of the authors of the "Compliance Manual", launched by LEC in 2019 and Compliance – besides the 2020 Manual. With solid experience in Brazil and Latin America, Patricia has expertise in the implementation of Governance and Compliance Programs, LGPD, ESG, trainings; strategic analysis of risk assessment and management, management in handling corporate reputation crises and investigations involving the DOJ (Department of Justice), SEC (Securities and Exchange Commission), WATER, CADE and TCU (Brazil). www.punder.adv.uk
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