Brand and reputation stewardship

Reputation is everything… Right?

While this saying may be a bit of a stretch, take a look at business headlines and you’ll see numerous examples of how damage to a company’s brand or reputation can cast a long, lingering shadow. Building and maintaining a brand’s reputation is rarely easy, especially with social media virality, lofty ESG commitments, increasing cybersecurity threats, quality control issues, and so on. However, the challenge can pale in comparison to the expensive and lengthy process of repairing a tarnished corporate image.

Why is brand reputation such a difficult area of governance for boards of directors? Besides the risks listed above, it can include the consideration of factors like corporate values, ethical standards, and communication responsiveness to adverse events—all of which may be more complex and nuanced than other areas of oversight. The good news is that boards that do take on the challenge of protecting their brand’s reputation can better anticipate risks to the company’s image and, in turn, sharpen its competitive advantage.

This edition of On the Board’s Agenda provides helpful strategies for boards to effectively navigate brand reputation management responsibilities. The reality is that directors will likely have to face factors that extend far beyond traditional board concerns, but because the impact of brand and reputation can affect the whole enterprise, these elements are all interconnected. That’s one reason why a cross-functional oversight approach (see below) can be a great place to start.