AI tops global C-suite worries on corporate reputation

Artificial intelligence has become the leading reputation management concern among global C-suite executives, even as fewer than half say they feel well prepared to manage its impact, according to a new Reputation Capital Scorecard study from Sandpiper and Earned First.

The research draws on a survey of more than 3,000 C-suite executives across 27 markets, including Singapore. It links reputational weaknesses with commercial impacts, including trading and revenue, valuations, crisis recovery, and talent attraction and retention.

Sandpiper and Earned First reported that 72% of CEOs said reputation is critical to commercial success. Yet only 61% of the global C-suite said their organisation's reputation sits in a strong position.

Commercial impact

The study found that reputational shortfalls have increasingly affected core business outcomes over the past year. Some 78% of executives said reputation weaknesses impacted company trading and revenue. Around 65% cited impacts on company valuations, crisis recovery, and talent attraction and retention.

The results also pointed to gaps in organisational readiness across several high-profile risk areas. Alongside AI, respondents identified cyber and data security issues, ESG and sustainability scrutiny, the rise of mis- and disinformation, and employee activism among the biggest concerns. The study said fewer than four in ten respondents felt well prepared across those areas.

The findings framed reputation as a management discipline that needs coordination across functions. The report also said fewer than half of respondents believed their organisations were agile, adaptable, or effective in managing reputation amid societal and geopolitical shifts and tensions.

Stakeholder alignment

The survey pointed to weak alignment between organisations and stakeholder expectations. Only 45% of respondents said they were highly aligned with customer expectations.

Alignment levels fell further across other groups. The study reported 44% alignment for employees and for government and regulators. It reported 42% for investors and 40% for community members.

The research connected these gaps with confidence in corporate standing. It said most CEOs regarded reputation as commercially critical, but a significant minority did not view their organisation's reputation as strong.

Insights gaps

The Reputation Capital Scorecard assessed eight areas of reputation management against four indicators. These indicators were Insights, Strategy, Relationships & Connectivity, and Resources.

Insights registered as the weakest indicator. Companies scored an average of 55 out of 100 on Insights. Strategy scored 63. Relationships & Connectivity scored 65. Resources scored 70.

The report also associated stronger performance in Insights with wider effectiveness in reputation management. It said organisations in the top quartile for Insights were 39 percentage points more likely to have a highly effective reputation management approach. They were also 32 percentage points more likely to say their reputation is strong.

Sandpiper and Earned First also reported a "multiplier effect". It said companies in the top quartile across all areas of reputation management were significantly more likely to perform well and suffer fewer impacts.

AI concern

AI ranked as the leading reputation management concern for the year ahead, according to the study. Only 40% of those surveyed said they were well prepared to manage its impact.

Kelly Johnston, Chief Operating Officer, Sandpiper Group, linked the concern to changes in how organisations interact with stakeholders.

"With the line between machine and human interaction blurring, the way that reputations and stakeholder relationships are managed, need to be adjusted. Organisations and leaders all over the world need to rethink reputation success in an era where mis- and dis-information is rife, and where seismic shifts in truth and trust can occur in seconds. The data in this report shows that reputation risk should be a shared responsibility and a centralised part of commercial performance," said Kelly Johnston, COO, Sandpiper Group.

Arun Sudhaman, Founding Editor, Earned First, described a gap between executive awareness and organisational execution.

"What stands out in this year's findings is not a lack of awareness, but a widening gap between confidence and delivery. Even as CEOs increasingly recognise reputation as commercially critical, many organisations have yet to resolve who owns, or how insight, strategy and response are coordinated at the top. As AI accelerates the pace at which reputational risk can emerge and spread, those structural ambiguities are becoming harder to manage, with direct consequences for performance, resilience and trust," said Sudhaman.

Sandpiper and Earned First presented the Reputation Capital Scorecard findings at an invitation-only session in Davos, alongside the World Economic Forum. The organisations said they would continue examining how reputation links to commercial performance across markets and stakeholder groups.