Why Reputation Has Become a Boardroom Priority

June 12, 2026

Published in:

Risk Management & Resilience

A group of businesspeople in a boardroom discuss important topics. — Photo by Entrepreneurs' Organization

For years, communications executives fought for a seat at the table.

Now they have one.

According to a recent Wall Street Journal article, chief communications officers are increasingly reporting directly to CEOs, earning larger compensation packages, and taking on responsibilities that extend far beyond media relations. Some are even moving into broader executive leadership positions traditionally occupied by operations, finance, or strategy executives.

The shift is long overdue. But the real story is bigger than the rise of the communications function.

Reputation has entered the boardroom.

Today, nearly every significant business decision carries reputational consequences. Product launches, hiring decisions, mergers, executive appointments, artificial intelligence initiatives, workforce reductions, political donations, corporate partnerships, and social media activity all have the potential to influence how stakeholders view an organization.

That reality has elevated communications leaders from messengers to advisors.

Every Business Decision Is Now a Reputation Decision

There was a time when communications teams were brought into the process after decisions had already been made: the product was built; the acquisition was signed; the policy was approved. The communications department's job was to simply announce it.

That model no longer works.

Organizations now operate in an environment where employees, customers, investors, activists, regulators, and the media can react instantly to virtually any corporate decision. A choice that appears operational on the surface can quickly evolve into a reputational issue.

The communications leader is often the person in the room asking questions others may overlook:

How will employees react?
How could this be interpreted by customers?
Will investors see this as a strength or a risk?
Could this decision create backlash online?
How might competitors frame it?

Those questions are not just public relations questions – they are business questions.

The answers can influence revenue, shareholder value, recruiting, retention, and long-term brand equity.

The Cost of Getting It Wrong Has Never Been Higher

Corporate reputation has always mattered. What has changed is the speed and scale of reputational consequences.

A decade ago, a controversial corporate decision might generate a few news stories and a temporary spike in criticism. Today, the same issue can trigger social media outrage, investor concern, employee activism, customer boycotts, viral commentary, and relentless scrutiny across digital platforms. Organizations have watched brands become cautionary tales almost overnight.

This challenge is not limited to major corporations. Mid-sized businesses, nonprofits, educational institutions, and professional service firms face many of the same risks.

The barrier between internal decisions and public perception has largely disappeared. As a result, executives increasingly recognize that reputation cannot be treated as a downstream consideration. It must be part of strategic planning from the outset.

AI Has Expanded the Communications Function

Artificial intelligence has accelerated this evolution. Communications teams once focused primarily on journalists, analysts, and stakeholders. Today, they must also think about how their organizations appear in AI-generated responses.

Potential customers are asking ChatGPT about companies before making purchasing decisions. Investors are using AI tools to conduct research. Journalists are using large language models to gather background information. Employees are turning to AI-powered search tools to find information about prospective employers.

In this environment, communications leaders are becoming stewards of digital credibility. They are working with marketing, legal, investor relations, and executive leadership to shape how organizations are represented across websites, newsrooms, search engines, media coverage, and AI platforms. Reputation management now extends far beyond traditional media relations.

The Modern Communications Executive Is a Risk Advisor

Many organizations still view communications through a marketing lens. That perspective misses the larger role communications leaders increasingly play.

The best communications executives operate much like risk advisors. They identify emerging issues before they become crises. They monitor stakeholder sentiment. They evaluate how corporate actions align with organizational values. They anticipate reputational vulnerabilities. They help leadership understand the second- and third-order effects of important decisions.

At their best, communications leaders serve as an early warning system. They provide executives with insight into how stakeholders are likely to respond long before a decision becomes public. That role requires judgment, candor, and the confidence to challenge assumptions.

As one executive quoted in the Wall Street Journal article observed, part of the job is becoming comfortable telling leaders what they need to hear rather than what they want to hear.

Trust Is Becoming a Competitive Advantage

Markets change. Technology evolves. Products become commoditized. But trust remains difficult to replicate.

Organizations with strong reputations attract better talent, retain customers longer, earn greater goodwill during difficult moments, and recover more quickly from setbacks.

Conversely, organizations that neglect reputation often discover that rebuilding trust is far more difficult than protecting it in the first place.

This reality explains why communications leaders are gaining influence within executive teams. They are helping organizations navigate one of the most valuable and fragile assets they possess: reputation.

The Future Belongs to Reputation-Driven Organizations

The communications executive of the future will look very different from the public relations leader of the past. The role increasingly combines elements of risk management, stakeholder engagement, executive counsel, corporate strategy, digital visibility, and organizational leadership. In many respects, communications leaders are becoming reputation executives.

That evolution reflects a broader truth about modern business. Organizations no longer compete solely on products, services, or pricing – they compete on trust. And trust is built—or lost—through reputation.

The companies that recognize this reality will make reputation a boardroom priority rather than a communications afterthought. The rest may find themselves learning the lesson in the middle of a crisis.

Contributed to EO by Evan Nierman, an EO South Florida member who is also known as The Reputationist. Evan is the CEO of Red Banyan, a global PR firm specializing in reputation management, crisis communications, and brand strategy.

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