Reputation and crisis management at boardroom level

Reputation and crisis management are key elements of supervisory board members' and supervisors' duties. Establishing and maintaining a strong reputation is vital for building trust among stakeholders, attracting talented staff and fostering long-term relationships. It also aligns with the importance of environmental orientation and meeting society's expectations. Crisis situations can damage a carefully built reputation, potentially undermining the company's long-term success. It is therefore important for management boards to reflect on how to actively incorporate reputation and crisis management into the company's wider governance. 

Strategic reputation management at boardroom level

The management board should be actively involved in developing and implementing reputation management strategies, while supervisory board members and supervisors monitor whether this is done properly. Proactive and transparent measures and communications at boardroom level can positively influence people's perception of the organisation – and the way they see the management board and supervisory board themselves. This is immensely important in an age of rapidly changing public opinions and expectations. 

Identifying and assessing reputational risks

To effectively manage a reputational crisis, it is important to identify and assess the potential risks to the organisation's reputation at an early stage. This requires taking stock of all relevant internal and external factors. A sound crisis management plan is crucial in that regard: it clearly defines the various roles and responsibilities and provides communication and decision-making protocols. In times of crisis, it is also important to ensure there is a paper trail documenting the decision-making process. This will ensure that the situation cannot subsequently be judged with any hindsight bias.

Evaluating and learning from crises

Crisis situations can also offer opportunities to improve internal processes, help prevent future crises and strengthen the organisation's overall resilience. It is therefore paramount to thoroughly evaluate crises and integrate lessons learned into future plans. Additionally, explicitly mentioning what went well and what did not helps restore trust inside and outside the organisation. This will boost the company's reputation.

Reputation and crisis management are key aspects of any organisation. By taking an active approach and implementing effective strategies on these issues, organisations can protect and strengthen their reputation, even in times of crisis. Marry de Gaay Fortman and David Heems contributed to the recently published standard book on reputation management for supervisory board members and supervisors, Reputatiemanagement voor commissarissen en toezichthouders, by reputation and communication expert Frank Peters. In this publication (in Dutch), they explain the liability risks that arise when a supervisory board does not properly perform its duties.

Houthoff has extensive experience advising supervisory board members and supervisors who face a reputational crisis at their organisation. As careful and effective communication is essential in this context, Houthoff regularly works together with reputation and crisis communications experts on this subject. 

If you have any questions, please contact Marry de Gaay Fortman or any other members of our specialised team.