The CEO brand is a great asset for a company, but when the CEO is disgraced, it becomes a huge liability for the company. Thus, CEOs have to consistently raise and improve their reputation to prevent the valuable asset from turning into a liability.
Radical, flamboyant, exuberantthree words which may well describe the Virgin empire, are actually the distinguishing characteristics of its CEO, Sir Richard Branson. Like his many hued personality, the Virgin Group is a business empire with many divisionsrecord stores, airlines, and soft drinks.
Similarly, "Iconoclastic and anti-establishment," the characteristics of Steve Jobs, describe Apple. The characteristics of these people and many like them infuse their companies, creating a lasting impression of the brand, which flows down to stakeholders. They are the ultimate bottom line for their companies because companies hugely benefit from the reputation of the CEO. In fact, several studies indicate a direct relationship between CEO's reputation and company's growth. This simply means that the company rises or falls with the reputation of its CEO. But, the relationship between the CEO's reputation and that of the company's is a two-way affair. The reputation of the CEO has to be held high for the growth of the company and the company has to grow to give monetary and reputation-related returns to the CEO, which again creates a need for the CEO to keep and nurture his reputation. Take for example, Bill Gateshe is considered a nerd. But, being considered a nerd is important for his company, Microsoft, because nerds constantly see the world differently and introduce products that advance technology for the betterment of consumersan image important for the valuation of Microsoft. It is no wonder that Gates nurtures his nerdy, geeky image. It would be safe to assume, then, that the reputation of the CEO and the image of the company are intertwined, for mutual benefit. However, such a close-association is not always advantageousMartha Stewart has shown why. |
