Stock of the CEO on the Rise

In a time of crisis, people usually look for leadership from the very top. As an Englishman living in Canada, I only have to think back to the summer of 1997 when my homeland descended into a state of national mourning following the death of Diana, Princess of Wales.

While thousands wept in their homes, as well as openly at the gates of Buckingham Palace, there was a growing, media-led, public clamor for the Queen to address her people – something she steadfastly refused to do until several days after that infamous night in Paris. When she did finally speak, it was greeted in many corners as “too little too late.” Such was Her Majesty’s perceived procrastination, that it even spawned an Oscar-winning movie.

While this historic moment represented the most extreme of crises on a national scale, it remains relevant to this day in the world of corporate business – that when people feel their community has been affected negatively and they need some words of comfort, they want to hear from the man or woman at the very top. And, what’s more, they’re now more likely than they were a couple of years ago to believe what they say.

This conclusion was backed-up by Edelman’s 2011 Canadian-specific Trust Barometer findings. It showed that CEOs are now considered more credible spokespeople, a significant shift from two years ago when they sat at the bottom of the table, below the likes of government officials or even financial/industry analysts.

It was perhaps one of the more surprising findings of the study in light of the fact that 2010 will be remembered by many as a year when some high profile corporate names failed to cover themselves in glory when their company found itself with its back against the wall – think of issues faced by the oil and car industry in particular.

Nevertheless, the people of Canada seem ready to believe more in the CEO once again (89 per cent) – with 10 per cent more trusting or somewhat trusting CEOs than last year. More so, in fact, than a financial/industries analyst or an ordinary person. Their figures are also on a par with a government official.

So, with the CEO stock on the rise, is it time for corporations to use this rise in trust at every conceivable opportunity? No, would be the short answer. For while the CEO remains a tried and tested communicator when the going gets really tough, overexposure can be harmful. Indeed, while there is a role for the CEO, the kind of crisis and issue facing the organization should always dictate whether or not they are the best spokesperson.

This is perhaps why, in Canada, the preferred spokesperson in the case of – for example – a product recall is both the technical expert and the CEO (35 per cent for both). However, when a local community has been damaged more people want to hear from the CEO (50 per cent) than from a technical expert (12 per cent).

Indeed, the Trust Barometer indicates that what people want to see in times of crisis is multiple voices – with CEOs, third parties, company chairmen, government officials and technical experts all having a role to play. However, as the Queen discovered, total silence is rarely golden. And in a year when a movie called The King’s Speech seems destined for Oscar glory, it seems only right that people seem ready to listen to the leaders of the corporate world once again.