Reputation in The Age of Exposure: A report by Hawthorn Advisors

This summer, we set out to understand how founders and senior executives feel about reputational risk, and how they’re responding to the changing risk landscape. In order to do this, we surveyed 150 founders and C-suite executives at organisations with revenues above £500 million and more than 1,000 employees to understand how reputational risk is changing. In addition, we gathered insights from prominent leaders from within our network, to hear what they had to say on the subject. 

Their message was clear – leaders are now judged on what they stand for, not just what they deliver strategically, technically or commercially. 

Nine in ten leaders believe CEOs and senior executives are now more likely to come under fire for decisions around culture, values and morality than for business performance.

Defensive decision-making

Seven in ten have experienced a reputational event with a measurable commercial or financial impact in the past five years. That pressure, and the fear of public backlash, is changing how businesses operate. Nearly three‑quarters say reputational concerns have delayed, altered or blocked a major commercial decision in the past 18 months, while two‑thirds say they sometimes slow innovation and prevent businesses from making changes. 

The leadership pipeline 

Almost two‑thirds say the realities of personal exposure are making listed‑company CEO and C‑suite roles significantly less attractive than they were five years ago, while one in three say they are themselves less interested in becoming a CEO in the current environment. Our research suggests that boards are responding too. They favour C-suite candidates who have already demonstrated an ability to handle public pressure, over those with stronger technical or operational credentials. 

Implications for the wider economy 

The consequences reach beyond individual boardrooms and into the UK’s capital markets. More than half say greater reputational exposure would reduce their appetite to pursue a future listing, and 40% say it would specifically make them less likely to list in the UK. 

The Age of Exposure

Decision-making is slower, leadership roles are less appealing, and UK listing is less desirable. Each is a rational response to more scrutiny. Together, they point to an Age of Exposure that is starting to shape how fast businesses move, which risks they take, who wants to lead them and where they choose to grow.

“News will not slow down, audiences will not become simpler and scrutiny will not recede. In the Age of Exposure, the answer is not to try to recreate the control leaders once had, but to build the judgement, resilience and trust required to lead without it,” John Evans, CEO and Founder, Hawthorn Advisors. 

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