Half of Business Leaders Feel Boards Lack Understanding to Manage Reputation

20/02/2017

54% of executives believe that their Board members lack the understanding and tools to effectively oversee opportunities and risks to corporate reputation, according to a new study ‘Reputation Governance: A Growing Boardroom Challenge’ which included 50 companies in Ireland by ReputationInc.
 
85% of executives agree that managing reputation is more important and challenging today than in the past.
 
90% of respondents claim that reputation measurement isn’t built into performance evaluation of the leadership team. 
 
Of those executives surveyed in Dublin, 38% said that their organisation didn’t have a clear understanding of how its image and brand reputation is perceived amongst its internal and external stakeholders. 34% believe that their Board doesn’t have the appropriate processes in place to respond in the event of a reputational risk. 
 
The top reasons corporate governance frameworks fail, according to the report are:

1. Stakeholder expectations not sufficiently taken into account;
2. Excessive compliance and control;
3. Short-termism emphasised by quarterly reporting; and
4. Corporate purpose and values not properly anchored