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A new study has revealed the mounting pressure on the shoulders of Australian chief executives when it comes to upholding brand reputation.
Medianet has revealed new research touching on the growing scrutiny that Australian chief executives – especially women – continue to face, highlighting how the image of a CEO can directly shape outcomes for organisations.
The report touched on how female CEOs, especially, often face heightened scrutiny despite holding just 8 per cent of ASX 300 chief executive positions.
The report touched on Qantas’ Vanessa Hudson and Woolworths’ Amanda Bardwell, who – during moments of organisational crisis – dominated the media coverage, while their male counterparts often slid under the radar during similar moments or challenges.
“This reflects a recent trend characterised as a ‘glass cliff’ for women taking on leadership roles. The theory posits female successors are deliberately appointed to take the reins of a brand following a crisis,” said the report.
This increased visibility of chief executives was pointed towards as a signal for trouble rather than a sign of strength. The report compared how much media coverage Woolworths’ chief executive and Bunnings’ chief executive experienced following major investigations, with Woolies accounting for 74 per cent and Bunnings 26 per cent.
“Our data makes it clear. A CEO’s visibility needs to be deliberate and strategic,” said Jacquie Hanna, head of insights at Medianet Insights.
“Boards and comms teams must rethink how they support leaders, especially women handed high-risk roles, and how they prepare for ESG and cyber issues that are now front and centre in the media cycle.”
In terms of the ESG and cyber security issues, 20 per cent of ESG-related coverage was linked to organisations committing greenwashing – causing significant brand issues for companies such as EnergyAustralia, which copped a $14 million fine.
Cyber security issues offer the same repercussions, with the recent AustralianSuper data breach driving 20 per cent of all cyber-related media mentions. Look no further than this week’s Qantas customer data leak debacle, which has dominated the headlines.
Another Woolworths example was its decision to put its former chief executive, Brad Banducci, in a high-risk TV interview, which led to a 7 per cent drop in share price, sustained negativity around the price gouging allegations that Woolies have been unable to separate themselves from, and Banducci’s eventual resignation. Speaking on the findings, and what organisations can learn going forward, Amrita Sidhu, managing director at Medianet said: “The findings in this report underscore the critical importance of a proactive and sophisticated media strategy for today’s CEOs.”
“It’s no longer enough to simply react; leaders need to anticipate risks and ensure their communications are deliberate and impactful, particularly when navigating high-stakes situations.”
Kace O'Neill
Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.
