Why boardroom reputation leadership is key to enterprise value

Reputation is no longer just an issue for the communications team. The way a company is seen, trusted and talked about matters more than eve. And it starts at the top. Today’s boards are expected to put reputation at the heart of good governance, taking active, visible steps to nurture and protect it.

As one major FMCG chief executive put it, “Managing our reputation is a regular part of good governance for all our leaders.” This applies from the boardroom to the front line.

Why is this so important? A strong reputation earns loyalty, lowers risk, attracts talent and opens doors to growth. It cushions companies in tough times and builds the trust needed for new opportunities. In a world where every decision and statement can be scrutinised, how boards and senior executives handle reputation truly separates those that lead from those that lag behind.

Boards and executives set the tone for the whole organisation. Their actions, words and even their social media presence carry weight. It’s up to them not only to avoid pitfalls, but to set the company’s ambition for its reputation, actively shape how it is seen and take ownership of building credibility from the inside out. When leaders model the standards they expect – honesty, accountability and respect – the rest of the company follows.

So how can boards and leaders make reputation governance a reality? Six essentials for boards and executives to lead on reputation:

Set the ambition and lead by example: Clearly define your reputation goals and ensure senior leaders embody them through their daily actions and decisions.
Consider reputation in every decision: Ask how each major move will affect stakeholder perceptions and behaviour – build this mindset into board and executive discussions.
Monitor and report regularly: Treat reputation metrics and risks as seriously as financial results; expect concise updates and real-time feedback.
Proactively communicate and engage: Go beyond crisis response – talk openly about purpose, values and even mistakes to build credibility and transparency.
Take ownership, especially at the top: Executives must be alert to how their own behaviour, both inside and outside work, reflects on the company. Personal and corporate reputation are closely interlinked.
Foster a culture of responsibility: Make it safe to raise concerns, reward integrity and recognise that every employee plays a part in building reputation.

Ultimately, the organisations that thrive will be those whose leaders step up, setting the standards, accepting responsibility and building trust every day. Boards and executives who place reputation at the centre of governance are the ones preparing their companies for long-term success, whatever the world throws at them.