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SOCIAL
IZING
YOUR
CEO:
FROm (UN)SOCIAL TO SOCIAL
T
       he reputation of the
       CEO is in trouble. A                            man and CEO of Universal Health Services,
       mere 14% of American                            “Stakeholders want to hear from business
                                                       leaders— in particular CEOs— on a regular
executives hold a positive                             basis. They want to know what we’re think-
                                                       ing, and not just about our own company,
view of chief executives,                              but about the larger industry we represent,
                                                       the communities we serve, and the world
according to a 2009 poll by                            we live in. We have a unique vantage point

Weber Shandwick with KRC                               in that we represent the broadest set
                                                       of constituencies.”
Research. Surely, the image                            CEOs are aware of their differentiated “nar-
                                                       rator” role. But this doesn’t mean that they
of CEOs among the general                              are taking full advantage of that opportunity
                                                       or quite realize how anxious stakehold-
public is even worse.                                  ers are to hear from them— for example,
                                                       previous Weber Shandwick research found
                                                       that during the financial crisis, 71% of U.S.
       This poor standing of CEOs is not just a        employees wanted more communications
       matter of bruised egos. Improving CEO           from the top. In a world of 24/7 media,
       reputation is inextricably linked to improved   hyperlinks and 12-hour news cycles, no
       company reputation. Thus, as CEO reputa-        better spokesperson exists than the CEO.
       tions improve, so do the reputations of their   With 500 million people around the world
       companies. As New York Times columnist          on Facebook and many people being first
       and renowned author Thomas Friedman             introduced to CEOs on YouTube, CEOs
       wrote, “In this kind of world, leadership at    must become more comfortable with all the
       every level of government and business          media options now available if they wish to
       matters more than ever.”                        be heard and share points of view. Now is
                                                       the time for CEOs to take greater responsi-
       Most CEOs are acutely aware that their of-
                                                       bility for openly and effectively communicat-
       fices provide unique platforms from which to
                                                                                  ing if they want
       communicate not
                                                                                  their companies to
       just internally, but
                                                                                  be listened to.
       externally as well. What CEOs say or don’t say has
       No other business                                                     Weber Shandwick
       leader can so
                            taken on added significance. CEOs                is well known for
       reliably provide     must more actively narrate their                 its thought leader-
       information          company stories with an “inline”                 ship services on
       about a compa-                                                        CEO and corpo-
       ny’s prospects or    approach that taps into both online rate reputation
       promote corpo-       and offline channels. Leaders must               and how CEOs
       rate citizenry in a                                                   best communicate
       way that will so
                            purposely manage their corporate                 internally and ex-
       likely be listened   and social reputations.                          ternally. Over the
       to and acted                                                          past several years,
       upon by investors,                                                    our firm’s research
       employees, customers, regulators, media      has highlighted the increasing importance
       and others. According to Alan Miller, chair- of executive communications in determining


                                            |1|
“Stakeholders want to hear from business leaders— in particular CEOs— on a
regular basis. They want to know what we’re thinking, and not just about our
own company, but about the larger industry we represent, the communities
we serve, and the world we live in. We have a unique vantage point in that we
represent the broadest set of constituencies.”

how companies and other institutions are perceived.             climate, prompted Weber Shandwick to take a deep
More than eight in 10 global senior executives report           look at how leading global CEOs are engaging
that effective communications is critical to protecting         external stakeholders online and offline. This study
reputation during a crisis. What CEOs say and don’t             explores whether CEOs are taking advantage of the
say has taken on added significance as business                 newer social channels of communication or primarily
continues to make news and drive word of mouth.                 sticking to the more traditional playbook of years
                                                                past. We plan to use the learning as a benchmark for
The proliferation of new media channels, coupled
                                                                trending CEOs’ socialization progress in the future
with the need for CEOs and other business leaders
                                                                and as key global business events unfold.
to make their companies relevant in an anti-business




                         Tweet-sized Tips for Getting Social
                        1.	 Identify best practices of your competition and best-in-
                            class communicators. Then establish and stretch your own
                            comfort zone.
                        2.	 Start with the fundamentals (e.g., videos or photos online).
                            Inventory and aggregate existing CEO communications for
                            repurposing online.
                        3.	 Learn story sharing. Craft a narrative that captures the
                            attention of target audiences.
                        4.	 Develop a C-suite social media strategy. Strategically
                            select social media outlets that fit the company’s overall
                            communications strategy.
                        5.	 Simulate or test drive social media participation.
                            Understand what you’re getting into before you go live.
                        6.	 Accept the fact that Getting Social needs to be part of your
                            corporate reputation management program.




                                                          |2|
What We Did                                                      What We Learned
In early 2010, Weber Shandwick researched the                    Our analysis revealed results that were good and
publicly visible activities of CEOs in the world’s larg-         not-so-good. Robust signs exist that CEOs are active-
est 50 companies. We assumed that leaders of these               ly taking charge of their corporate reputations and
companies would, for the most part, serve as good                demonstrating leadership through communications.
surrogates for the most carefully watched CEOs.                  For the most part, they are extensively quoted in the
These CEOs are often in great demand for news,                   business press, frequently deliver keynote speeches
information and insights. They represent a point of              at conferences, and participate in business school
reference for how many CEOs are communicating.                   forums. But when it comes to digital engagement
                                                                 and social media, CEOs are generally “unsocial.”
Sixty* CEOs from companies were examined
                                                                 As more CEOs take on the mantle of “chief narrator,”
(20 in the U.S., 27 in Europe, 9 in APAC and 4 in Latin
                                                                 however, we expect that this will change and
America). In compiling our research, we accessed,
                                                                 change fast.
among others, Factiva, search engines, company
websites, academic calendars, conference agendas,                CEOs understand the stakes. Whether online or
and social media. When possible, the Weber                       offline, proactively or reactively, nearly all top 60
Shandwick team compared CEO communications in                    global CEOs communicated externally in 2009 (97%)
2009 to 2007 and examined CEO activity by region,                to competitively position their companies and brands
tenure and reputational status.                                  in expectation of an economic upturn. Undoubtedly,
                                                                 many CEOs communicated outside the walls of
Weber Shandwick audited the following CEO activities:
                                                                 their firms because the down economy left them no
 •	   CEO quotes in top global news and business                 choice. As the economy faltered and media scrutiny
      media articles                                             intensified, companies found themselves losing
 •	   Books published by CEOs                                    reputational equity. The vast majority of CEOs un-
 •	   Interviews by management consulting                        derstood that if they did not give their companies a
      organizations                                              voice, competitors and dissatisfied customers would
 •	   Interviews with top business schools (for news-            soon fill the void.
      letter or on campus)
 •	   Speaking engagements at “Five-Star” business
      conferences **
 •	   Speeches given to external audiences (as listed            Our results on CEO external communi-
      on company website)
                                                                 cations are presented in three sections—
 •	   Communications on company website: letters,
      messages, videos and podcasts                              online CEO communications, CEOs in
 •	   Social networking sites (e.g., Facebook,                   the traditional media, including business
      LinkedIn, MySpace)
 •	   Microblogging (e.g., Twitter)                              leadership conferences, and third, the
 •	   Wikipedia                                                  future of external CEO communications.
 •	   Company YouTube channels

* 10 companies had multiple CEOs during 2009
** premier business leadership conferences identified by
   Weber Shandwick




                                                           |3|
CEO Sociability by the Numbers
Of the world’s largest company CEOs...


     97   % communicated either through traditional or
            online channels




     36% engaged through company websites or in social media

     64   % are NOT engaged through company websites or in
            social media




     28   % posted letter or message on company websites



          % incorporated video/podcast on company websites
     18     or YouTube channels



          % have a profile on Twitter (8%), Facebook (4%),
     16     MySpace (4%) or LinkedIn (4%)




     12   % were featured on their corporate video channels




                                |4|
Section 1

from
(Un)social
to Social
Without a doubt, CEOs recognize that the Internet
has swept through corporate corridors and boardrooms,
transforming the media landscape. The majority of CEOs
can be found online, with seven in 10 having some kind of
online presence. However, most CEO visibility is limited to
Wikipedia, which CEOs and their communications teams
are not generally responsible for. Removing Wikipedia
mentions leaves the online CEO space rather barren—
only 36% are engaged through their company websites or
in social media.

                CEO Online Engagement*
                *excludes Wikipedia




                                      36%
                            64%
                                            Online engagement
                                            No online engagement


                                      |5|
Who’s Social?
If nearly two-thirds (64%) of CEOs are not engaging online,
what distinguishes the approximately one-third (36%) who
are building a presence online? The research identified the
following characteristics of social CEOs:
Social CEOs lead companies with higher reputa-                 Social CEOs are multi-users. When they engage,
tional status. Most admired company CEOs in our                social CEOs employ more than one online channel,
audit had greater online visibility profiles than less         with 72% of them using more than one channel
admired company CEOs (41% vs. 28%, respectively).              (on average, social CEOs use 1.8 channels). They
Quite possibly, CEOs of esteemed companies rec-                appear on company YouTube channels, share
ognize that their engagement helps drive reputation            messages on company websites and participate in
and do so because it is expected by their constituen-          Facebook or Twitter.
cies. Another theory is that these companies have a
                                                               Social CEOs are more likely to represent American
greater reputational margin of error and their CEOs
                                                               companies. CEOs of companies with headquarters
are subsequently more comfortable experimenting
                                                               in the U.S. are more likely to engage online than
with new modes of engagement.
                                                               those in EMEA (60% vs. 12%, respectively). Although
                                                               the sample sizes of CEOs in Asia Pacific and Latin
                                                               America are too small to allow for reliable compari-
                                                               son, indications are that they too are at low levels.
  CEO Online Visibility
                                                               Social CEOs are more tenured. Online engagement
  (excluding Wikipedia)
  By 2010 Fortune Most Admired Company Status
                                                               increases with tenure. Newer CEOs (3 years or less)
                                                               are less likely than those in their middle (3 to 5 years)
                                                               and later period of their tenures (more than 5 years)
                                                               to engage online— 30% vs. 38% vs. 43%, respective-
                                                               ly. For new CEOs, the first few years typically require
        41%                        28%
                                                               a more internal focus to earn organizational support.
                                                               After they pass the three-year mark, CEOs have more
                                                               opportunity to focus on external communications
                                                               and tell the company story. Additionally, these CEOs
     Most Admired                 Contender                    now have the experience and track record that make
                                                               them less risk-averse about trying new forms
                                                               of engagement.




                                                         |6|
What Online Channels are 36% of CEOs Using to be Social?
Online communications other than Wikipedia is scarce.
Only one in four CEOs (28%) posted a letter or mes-      When it comes to social networking sites, the socia-
sage on their company website and even fewer (18%)       bility of top CEOs drops even further. Only 16% of
incorporated a video/podcast on either the company       the top global CEOs studied had a profile
website or its YouTube channel. Understandably,          on Twitter (8%), Facebook (4%), MySpace (4%) or
CEOs may feel it necessary to go out of their way        LinkedIn (4%). At the time of our research, not one
not to be seen as celebrity CEOs with their pictures     CEO had a company-affiliated blog. These findings
and words plastered online. Humble as this may           are roughly in line with a study conducted in 2009 by
be, it might be counterproductive for personalizing      UberCEO among Fortune’s top 100 U.S. company
corporate leadership, especially as a means of build-    CEOs. It found that 19% of U.S. CEOs had a
ing corporate credibility in this online world among     Facebook page, 13% were on LinkedIn, and 2%
customers and other key stakeholders.                    had a Twitter account. Apparently, CEOs are just not



                              CEO Online Visibility Channels

                            Wikipedia Page                           64%
                         Letter/message on
                          company website                28%

                                                                 {
                                                                     Most effective external comms
                 Video/podcast on company
                 website or YouTube channel         18%              vehicle, according to external
                                                                     communications professionals*




                                                         }
                                    Twitter     8%                   *Weber Shandwick & Vital Speeches
                                                                     of the Day research, 2010
                                 Facebook     4%
                                                                Any social network 	
                                  MySpace     4%                page/profile: 16%

                                   LinkedIn   4%
                    Company-affiliated blog   0%
                                                                {  No CEOS had a company-
                                                                   affiliated blog




Wikipedia, the free, public-driven, web-based, col-      creators are an eclectic group, ranging from graduate
laborative encyclopedia, is the most common source       students to self-proclaimed casual contributors to
of information on CEOs in our research. Nearly two-      writers to company fans. We could not find proof that
thirds of CEOs investigated (64%) have a Wikipedia       any originator was employed by the companies we
profile. This group is roughly evenly divided between    studied. Given that Wikipedia often shows up at the
European and American CEOs (28% and 26%,                 top of search engine results lists, companies may want
respectively). Weber Shandwick explored the origina-     to be their own content providers to supplement or
tion of CEOs’ Wikipedia pages and learned that profile   offset what the other profilers are saying.


                                                     |7|
Companies with                                CEOs Featured on
                 YouTube channels                              Company YouTube
                                                               channels


                                         56%
                       34%                                                            12%
                                                                       2%
                         2007             2009                         2007            2009

ready to be fully social. Interestingly, Toyota CEO            controlled YouTube site is an easy, straightforward
Akio Toyoda has a blog but uses an alias: “Morizo”             and simple way to add some personality and human-
on Toyota’s Gazoo e-commerce and networking site               ity to the role of CEO and to tell the company story
in Japan.                                                      in a compelling way. Videos can be scripted, edited
                                                               and shared virally. They also provide an opportunity
Video is under-utilized as well. Despite the near
                                                               for a CEO to offer a more relaxed, appealing and
doubling of corporate YouTube channels among the
                                                               conversational message than might be otherwise
companies researched from 2007 to 2009, only 12%
                                                               traditionally available. Recent Weber Shandwick
of their CEOs were featured on their video channels
                                                               research among executive communications profes-
in 2009. GE’s chairman and CEO Jeffrey Immelt was
                                                               sionals found that video was the preferred form of
featured more than any other top 50 global CEO on
                                                               communication, yet was the least-used medium for
its company YouTube site, followed by Mexican pe-
                                                               showcasing CEOs today.
troleum company Pemex’s CEO Jesus Reyes Heroles.
This finding is surprising considering that a company-         In an age of see-thru reputation where everyone is
                                                               indexed, CEOs appear to be overlooking the funda-
                                                               mental advantages of the Internet age.
                                                               As leaders come to fully realize that they must be
What Messages are 36% of                                       content providers of the highest order, greater
                                                               participation in the social media world order seems
CEOs Conveying Online?                                         inevitable. As CEOs become more comfortable
                                                               engaging online, their online participation— be it
Weber Shandwick analyzed the content of the                    video, podcast, internal blog or Facebook— will
social CEOs, excluding shareholder and investor                help shape their company reputations as well as their
messages. For the most part, they are sharing                  own. This is not to say that CEOs need to engage
corporate and CEO leadership news. For example,                all or most of their time online, but they should at
they impart forward-looking company or industry                the very least have a presence online. Adopting one
                                                               or more of the many social media outlets available
news, post links to recent CEO public appear-
                                                               today and limiting usage to what is feasible would
ances, discuss significant company partnerships,
                                                               seem more than a reasonable use of a CEO’s time.
and share the company story. A few CEOs are on                 Forrester’s CEO George Colony said on his CEO
the defensive, combating negative public opinion               blog, The Counterintuitive CEO: “The Social CEO
or reassuring stakeholders that they are trying hard           should not be chasing followers. He should be Social
to mend their damaged reputation.                              Light— blogging six to eight times per year and
                                                               posting on Twitter 12-24 times per year. This level of


                                                         |8|
presence will reveal the broad thinking of the CEO,              As President Obama’s senior adviser David Axelrod
while matching up with the time demands of running               said, “The reality is you cannot operate in this
a company.”                                                      environment passively. If you do, the coverage
                                                                 and events will be shaped for you. Things that
The failure to maintain an online presence may have a            may seem like trivial distinctions can become
marked downside. For most companies today, the ma-               large problems in terms of communications un-
jority of their constituencies are now online and CEOs           less you’re aggressive about engaging. We didn’t
should be where stakeholders are likely to be listening,         create the environment. We didn’t make the rules.
watching and searching. Lack of an online presence               But we have to live with it.”
may easily be misinterpreted as evidence of an attempt
to hide unpleasant facts or, even worse, being uncom-
municative. Weber Shandwick believes that CEOs
need to play some role online today, however limited,
because whether six out of 10 CEOs acknowledge it or
not, presence online serves as the face of a company
and helps protect and build reputation.




  Why are 64% of CEOs (Un)Social?
  Possible reasons abound...
   •	 Some argue that engaging online is of secondary importance and that CEOs should spend the
      majority of their time face-to-face with customers, employees and other hard-to-reach constituencies.
      Such upfront and personal efforts require extensive travel, late nights and back-to-back meetings
      that severely limit the ability to communicate and regularly participate online.
   •	 CEOs aren’t convinced of the ROI from online engagement.
   •	 CEOs of the world’s most powerful companies are older and may not be as comfortable
      communicating through online channels (the average age for the CEOs in our sample is 57).
   •	 CEOs are apprehensive of online engagement in general.
   •	 Constraints from the legal team, corporate communications and investor relations may make it
      difficult, even impossible, for many CEOs to interact online.
   •	 Aversion to being seen as a “celebrity CEO” or sensitivity to overshadowing the organization.
   •	 Regional and cultural differences may not yet make online a viable communications tool.




                                                           |9|
Section 2


Traditional
CEO Communications
In addition to examining online communications, we also
analyzed the extent to which traditional communications
remained prevalent among CEOs. According to our analysis,
CEOs were not silent. During the last year, the vast majority—
93%— communicated externally in traditional fashion and
did so in a variety of ways— from being quoted in the top
media, to speaking at influential conferences and top-drawer
business schools.
Traditional media was by far the most common form         quoted in more articles than more admired
of CEO communication in 2009— 93% of the CEOs             company CEOs. This difference is significantly
analyzed were quoted in the major global news and         driven by CEOs in intensely scrutinized sectors such
business publications. [Weber Shandwick counted           as financial services and automotive who received
inclusion in the major global news and business media     much of the blame for the economic meltdown and
when an individual CEO was quoted in a publication        were called upon to comment on their actions and
offline, regardless of whether it appeared online as      unfolding events.
well.] CEOs were quoted about a wide range of news
and informational content, including new product
or technology introductions, leadership transitions,      CEO offline external
financial performance, business strategy, the economy,
government regulations, philanthropic activities, and     communications activities in 2009
sometimes apologies for, or in defense of, wrongdoing.
                                                                             Any speaking engagement to
Whether in spite of or because many CEOs and                                  an external audience = 40%
                                                                                }
their companies suffered significant reputational
blows in the past year, CEOs did not pull back from           93%
traditional media— newspapers, magazines and
news services— but used them as vehicles to narrate                            33%               23%              10%
their company point of view and tell the story as they
saw fit. In 2009, the world’s top CEOs were quoted
                                                            Quoted in            Gave          Participated      Interviewed
28% more than in 2007. This increase in CEO quotes       major global news      speech         in Five-Star         by top
in the traditional news media held for both U.S.           and business                        Conference*         business
and EMEA CEOs (43% vs. 25% increases over 2007,            media article                                            school
respectively). Less admired company CEOs were            * premier business leadership conferences identified by Weber Shandwick


                                                     | 10 |
Average number of global major
                                  business articles in which CEOs*
                                  were quoted *Top Global Company CEOs
                                                     +28%



                                          213                        272

                                           2007                      2009




CEOs on the Speaking Circuit
Whereas CEOs’ use of traditional media is ubiquitous and con-
sidered part of their job, the speaking circuit for CEOs and other
executives is a rapidly growing means to communicate externally.
Speaking publicly is a strategically smart way to              Other findings include:
engage face-to-face with customers, prospects, peers            •	   U.S. CEOs were more than twice as likely to
and talent. Weber Shandwick identified a 29% increase                speak externally than EMEA CEOs in 2009 (70%
from 2007 to 2009 in top 50 global CEO conference                    vs. 30%, respectively).
speeches, not including investor conferences.
                                                                •	   CEO participation in speaking engagements
Four in 10 top 50 global CEOs (40%) gave a speech                    increased with tenure— half of all CEOs in
in 2009, with nearly one in four (23%) speaking at an                office for five years or more (50%) addressed an
esteemed Five-Star conference. Five-Star conferences                 external audience through speaking engage-
include forums such as Fortune, Wall Street Journal                  ments compared to nearly one-third (32%) of
and Forbes CEO conferences, the World Economic                       those in office three years or less. Clearly, as
Forum and Clinton Global Initiative. Although tradi-                 longer-tenure CEOs begin contemplating their
                                                                     legacies and how to position their companies
tional, conferences are an effective and less risky way
                                                                     for the next generation, CEOs take their role as
to advance company business and positioning with
                                                                     content providers more seriously.
receptive audiences.
                                                               Business school forums were chosen by 10% of the
                                                               leading CEOs audited as an external communications
                                                               vehicle. As the economy recovers, Weber Shandwick
CEO Speaking Engagements*                                      expects this type of forum to increase as CEOs go on the
*Excluding Investor Conferences                                campaign trail to attract the best talent. We anticipate a
                                                               rise in CEO commencement speeches as well since these
                                                               speeches are readily rebroadcast online as well as being

         31%                      40%                          reported in the traditional media. In 2010, notable CEOs
                                                               speaking to university graduates included JPMorgan-
                                                               Chase CEO Jamie Dimon (Syracuse University), General
                                                               Electric CEO Jeffrey Immelt (Hamilton College) and
          2007                    2009                         Amazon CEO Jeff Bezos (Princeton University).

                                                      | 11 |
Section 3


the Future of
CEO External
Communications
Despite all the talk about the demise of traditional media
outlets, it still remains the preferred outlet for CEO exter-
nal communications. The traditional media still wants to
hear from the person at the top. What is changing is how
CEOs are slowly coupling their traditional media engage-
ment with social networks and channels where they can
reach more stakeholders and give their companies a much
needed human face or connection. The four in 10 CEOs in
this analysis who are socializing their brands online may
now be perceived as trailblazers but in short order, will be
expected leadership behavior.




                              | 12 |
Six Rules of the Road
CEOs need to be in greater control of their online as well as
offline communications, known as “inline” communications
by Weber Shandwick. As attention on CEOs continues to be
more about wrongdoing than rightdoing, CEOs must be more
active as chief storytellers. Weber Shandwick recommends
that companies seriously consider the following to enhance
their leadership reputations in this Internet era and demon-
strate that they can adapt to market dynamics:

1.   Identify best practices of your competition
     and best-in-class communicators. Then 	
establish and stretch your own comfort zone.
                                                           4.    Develop a C-suite social media strategy.
                                                                 C-level executives should strategically select
                                                           social media outlets to get the company point of view
Audit the competition and best-in-class communica-         across and that fit with the company’s overall commu-
tors to determine the right balance between CEO            nications strategy. This top-level participation online
offline and online communications. This analysis           needs to take into account any regulatory restrictions
should take into account that online communications        and legal considerations.
are meant to supplement traditional offline com-
munications from the top, not replace them. Realize
that the CEO’s online comfort zone may not extend
beyond posting video of a speech on the company
                                                          5.    Simulate or test drive social media participation.
                                                                Understand what you’re getting into before
                                                           you go live. CEOs and the corporate communica-
website, so use it and refresh often, continuously         tions team should test the waters in a simulator
expanding the online comfort zone.                         setting to get the CEO comfortable with using the
                                                           medium and identify any channels that simply don’t

2.    Start with the fundamentals (e.g., videos or
      photos online). Inventory and aggregate
existing CEO communications for repurposing
                                                           work to the CEO’s best advantage. This exercise will
                                                           also help establish a realistic time commitment for
                                                           online engagement.
online. Actively aggregate CEO external com-
munications (e.g., speeches, investor conferences,
university appearances, annual report and social
responsibility report letters from the CEO, video,
                                                           6.   Accept the fact that Getting Social needs to
                                                                be part of your corporate reputation manage-
                                                           ment program. Purposefully manage your corporate
op-eds) and repurpose and reverberate online and           and social reputation. Weber Shandwick provides
offline to ensure top search engine visibility and         counsel on how CEO and corporate reputations are
forge a sharper and more transparent executive voice       best built in today’s shifting business landscape.
for the company.                                           Included in that counsel and research-backed
                                                           advice are recommendations on building social

3.    Learn story sharing. Craft a narrative that cap-
      tures the attention of target audiences. Weber
Shandwick conducts workshops to train executives in
                                                           CEO reputations in addition to traditional ones.


crafting a narrative and sharing stories that achieve
business goals and advance the business. It provides
a step-by-step process for turning messages into
stories that capture attention, resonate and deliver a
call-to-action for stakeholders.
                                                      | 13 |
For more information about this study or additional
thought leadership, please contact:
         Andy Polansky                                         Gail Heimann
         President                                             Vice Chair
         212.445.8102                                          212.445.8117
         apolansky@webershandwick.com                          gheimann@webershandwick.com




         Colin Byrne                                           Cathy Calhoun
         CEO, UK & Europe                                      President, North America
         44 20 7067 0191                                       312.988.2375
         cbyrne@webershandwick.com                             ccalhoun@webershandwick.com



         Tim Sutton                                            Baxter Jolly
                                                               Vice Chair, Asia Pacific
         Chairman, Asia Pacific
                                                               65 68258001
         852 2501 7907
                                                               bjolly@webershandwick.com
         tsutton@webershandwick.com




         Leslie Gaines-Ross                                    Chris Perry
         Chief Reputation Strategist                           President, Digital Communications
         212.445.8302                                          212.445.8007
         lgaines-ross@webershandwick.com                       cperry@webershandwick.com



         James Warren                                          Ian Rumsby
         Chief Creative Officer, Digital                       EVP, Client Strategy, Asia Pacific
         44 20 7067 0503                                       61 413 026 740
         jwarren@webershandwick.com                            irumsby@webershandwick.com




         Micho Spring                                          Paul Jensen
         Chairperson, Global Corporate Practice                Chairperson, North American
         617.520.7075                                          Corporate Practice
         mspring@webershandwick.com                            212.445.8066
                                                               pjensen@webershandwick.com




You can also visit:                  References for Getting Social or Socializing Your CEO
www.webershandwick.com
                                     5 Reasons CEOs Hesitate to Adopt Social Media
                                     Forrester’s The Social CEO
                                     UberCEO: Fortune 100 CEOs are Social Media Slackers
                                     The Altimeter Group’s Founder Charlene Li, Open Leadership

                                                  | 14 |

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웨버 샌드윅 리포트 'Socializing your CEO'

  • 2. T he reputation of the CEO is in trouble. A man and CEO of Universal Health Services, mere 14% of American “Stakeholders want to hear from business leaders— in particular CEOs— on a regular executives hold a positive basis. They want to know what we’re think- ing, and not just about our own company, view of chief executives, but about the larger industry we represent, the communities we serve, and the world according to a 2009 poll by we live in. We have a unique vantage point Weber Shandwick with KRC in that we represent the broadest set of constituencies.” Research. Surely, the image CEOs are aware of their differentiated “nar- rator” role. But this doesn’t mean that they of CEOs among the general are taking full advantage of that opportunity or quite realize how anxious stakehold- public is even worse. ers are to hear from them— for example, previous Weber Shandwick research found that during the financial crisis, 71% of U.S. This poor standing of CEOs is not just a employees wanted more communications matter of bruised egos. Improving CEO from the top. In a world of 24/7 media, reputation is inextricably linked to improved hyperlinks and 12-hour news cycles, no company reputation. Thus, as CEO reputa- better spokesperson exists than the CEO. tions improve, so do the reputations of their With 500 million people around the world companies. As New York Times columnist on Facebook and many people being first and renowned author Thomas Friedman introduced to CEOs on YouTube, CEOs wrote, “In this kind of world, leadership at must become more comfortable with all the every level of government and business media options now available if they wish to matters more than ever.” be heard and share points of view. Now is the time for CEOs to take greater responsi- Most CEOs are acutely aware that their of- bility for openly and effectively communicat- fices provide unique platforms from which to ing if they want communicate not their companies to just internally, but be listened to. externally as well. What CEOs say or don’t say has No other business Weber Shandwick leader can so taken on added significance. CEOs is well known for reliably provide must more actively narrate their its thought leader- information company stories with an “inline” ship services on about a compa- CEO and corpo- ny’s prospects or approach that taps into both online rate reputation promote corpo- and offline channels. Leaders must and how CEOs rate citizenry in a best communicate way that will so purposely manage their corporate internally and ex- likely be listened and social reputations. ternally. Over the to and acted past several years, upon by investors, our firm’s research employees, customers, regulators, media has highlighted the increasing importance and others. According to Alan Miller, chair- of executive communications in determining |1|
  • 3. “Stakeholders want to hear from business leaders— in particular CEOs— on a regular basis. They want to know what we’re thinking, and not just about our own company, but about the larger industry we represent, the communities we serve, and the world we live in. We have a unique vantage point in that we represent the broadest set of constituencies.” how companies and other institutions are perceived. climate, prompted Weber Shandwick to take a deep More than eight in 10 global senior executives report look at how leading global CEOs are engaging that effective communications is critical to protecting external stakeholders online and offline. This study reputation during a crisis. What CEOs say and don’t explores whether CEOs are taking advantage of the say has taken on added significance as business newer social channels of communication or primarily continues to make news and drive word of mouth. sticking to the more traditional playbook of years past. We plan to use the learning as a benchmark for The proliferation of new media channels, coupled trending CEOs’ socialization progress in the future with the need for CEOs and other business leaders and as key global business events unfold. to make their companies relevant in an anti-business Tweet-sized Tips for Getting Social 1. Identify best practices of your competition and best-in- class communicators. Then establish and stretch your own comfort zone. 2. Start with the fundamentals (e.g., videos or photos online). Inventory and aggregate existing CEO communications for repurposing online. 3. Learn story sharing. Craft a narrative that captures the attention of target audiences. 4. Develop a C-suite social media strategy. Strategically select social media outlets that fit the company’s overall communications strategy. 5. Simulate or test drive social media participation. Understand what you’re getting into before you go live. 6. Accept the fact that Getting Social needs to be part of your corporate reputation management program. |2|
  • 4. What We Did What We Learned In early 2010, Weber Shandwick researched the Our analysis revealed results that were good and publicly visible activities of CEOs in the world’s larg- not-so-good. Robust signs exist that CEOs are active- est 50 companies. We assumed that leaders of these ly taking charge of their corporate reputations and companies would, for the most part, serve as good demonstrating leadership through communications. surrogates for the most carefully watched CEOs. For the most part, they are extensively quoted in the These CEOs are often in great demand for news, business press, frequently deliver keynote speeches information and insights. They represent a point of at conferences, and participate in business school reference for how many CEOs are communicating. forums. But when it comes to digital engagement and social media, CEOs are generally “unsocial.” Sixty* CEOs from companies were examined As more CEOs take on the mantle of “chief narrator,” (20 in the U.S., 27 in Europe, 9 in APAC and 4 in Latin however, we expect that this will change and America). In compiling our research, we accessed, change fast. among others, Factiva, search engines, company websites, academic calendars, conference agendas, CEOs understand the stakes. Whether online or and social media. When possible, the Weber offline, proactively or reactively, nearly all top 60 Shandwick team compared CEO communications in global CEOs communicated externally in 2009 (97%) 2009 to 2007 and examined CEO activity by region, to competitively position their companies and brands tenure and reputational status. in expectation of an economic upturn. Undoubtedly, many CEOs communicated outside the walls of Weber Shandwick audited the following CEO activities: their firms because the down economy left them no • CEO quotes in top global news and business choice. As the economy faltered and media scrutiny media articles intensified, companies found themselves losing • Books published by CEOs reputational equity. The vast majority of CEOs un- • Interviews by management consulting derstood that if they did not give their companies a organizations voice, competitors and dissatisfied customers would • Interviews with top business schools (for news- soon fill the void. letter or on campus) • Speaking engagements at “Five-Star” business conferences ** • Speeches given to external audiences (as listed Our results on CEO external communi- on company website) cations are presented in three sections— • Communications on company website: letters, messages, videos and podcasts online CEO communications, CEOs in • Social networking sites (e.g., Facebook, the traditional media, including business LinkedIn, MySpace) • Microblogging (e.g., Twitter) leadership conferences, and third, the • Wikipedia future of external CEO communications. • Company YouTube channels * 10 companies had multiple CEOs during 2009 ** premier business leadership conferences identified by Weber Shandwick |3|
  • 5. CEO Sociability by the Numbers Of the world’s largest company CEOs... 97 % communicated either through traditional or online channels 36% engaged through company websites or in social media 64 % are NOT engaged through company websites or in social media 28 % posted letter or message on company websites % incorporated video/podcast on company websites 18 or YouTube channels % have a profile on Twitter (8%), Facebook (4%), 16 MySpace (4%) or LinkedIn (4%) 12 % were featured on their corporate video channels |4|
  • 6. Section 1 from (Un)social to Social Without a doubt, CEOs recognize that the Internet has swept through corporate corridors and boardrooms, transforming the media landscape. The majority of CEOs can be found online, with seven in 10 having some kind of online presence. However, most CEO visibility is limited to Wikipedia, which CEOs and their communications teams are not generally responsible for. Removing Wikipedia mentions leaves the online CEO space rather barren— only 36% are engaged through their company websites or in social media. CEO Online Engagement* *excludes Wikipedia 36% 64% Online engagement No online engagement |5|
  • 7. Who’s Social? If nearly two-thirds (64%) of CEOs are not engaging online, what distinguishes the approximately one-third (36%) who are building a presence online? The research identified the following characteristics of social CEOs: Social CEOs lead companies with higher reputa- Social CEOs are multi-users. When they engage, tional status. Most admired company CEOs in our social CEOs employ more than one online channel, audit had greater online visibility profiles than less with 72% of them using more than one channel admired company CEOs (41% vs. 28%, respectively). (on average, social CEOs use 1.8 channels). They Quite possibly, CEOs of esteemed companies rec- appear on company YouTube channels, share ognize that their engagement helps drive reputation messages on company websites and participate in and do so because it is expected by their constituen- Facebook or Twitter. cies. Another theory is that these companies have a Social CEOs are more likely to represent American greater reputational margin of error and their CEOs companies. CEOs of companies with headquarters are subsequently more comfortable experimenting in the U.S. are more likely to engage online than with new modes of engagement. those in EMEA (60% vs. 12%, respectively). Although the sample sizes of CEOs in Asia Pacific and Latin America are too small to allow for reliable compari- son, indications are that they too are at low levels. CEO Online Visibility Social CEOs are more tenured. Online engagement (excluding Wikipedia) By 2010 Fortune Most Admired Company Status increases with tenure. Newer CEOs (3 years or less) are less likely than those in their middle (3 to 5 years) and later period of their tenures (more than 5 years) to engage online— 30% vs. 38% vs. 43%, respective- ly. For new CEOs, the first few years typically require 41% 28% a more internal focus to earn organizational support. After they pass the three-year mark, CEOs have more opportunity to focus on external communications and tell the company story. Additionally, these CEOs Most Admired Contender now have the experience and track record that make them less risk-averse about trying new forms of engagement. |6|
  • 8. What Online Channels are 36% of CEOs Using to be Social? Online communications other than Wikipedia is scarce. Only one in four CEOs (28%) posted a letter or mes- When it comes to social networking sites, the socia- sage on their company website and even fewer (18%) bility of top CEOs drops even further. Only 16% of incorporated a video/podcast on either the company the top global CEOs studied had a profile website or its YouTube channel. Understandably, on Twitter (8%), Facebook (4%), MySpace (4%) or CEOs may feel it necessary to go out of their way LinkedIn (4%). At the time of our research, not one not to be seen as celebrity CEOs with their pictures CEO had a company-affiliated blog. These findings and words plastered online. Humble as this may are roughly in line with a study conducted in 2009 by be, it might be counterproductive for personalizing UberCEO among Fortune’s top 100 U.S. company corporate leadership, especially as a means of build- CEOs. It found that 19% of U.S. CEOs had a ing corporate credibility in this online world among Facebook page, 13% were on LinkedIn, and 2% customers and other key stakeholders. had a Twitter account. Apparently, CEOs are just not CEO Online Visibility Channels Wikipedia Page 64% Letter/message on company website 28% { Most effective external comms Video/podcast on company website or YouTube channel 18% vehicle, according to external communications professionals* } Twitter 8% *Weber Shandwick & Vital Speeches of the Day research, 2010 Facebook 4% Any social network MySpace 4% page/profile: 16% LinkedIn 4% Company-affiliated blog 0% { No CEOS had a company- affiliated blog Wikipedia, the free, public-driven, web-based, col- creators are an eclectic group, ranging from graduate laborative encyclopedia, is the most common source students to self-proclaimed casual contributors to of information on CEOs in our research. Nearly two- writers to company fans. We could not find proof that thirds of CEOs investigated (64%) have a Wikipedia any originator was employed by the companies we profile. This group is roughly evenly divided between studied. Given that Wikipedia often shows up at the European and American CEOs (28% and 26%, top of search engine results lists, companies may want respectively). Weber Shandwick explored the origina- to be their own content providers to supplement or tion of CEOs’ Wikipedia pages and learned that profile offset what the other profilers are saying. |7|
  • 9. Companies with CEOs Featured on YouTube channels Company YouTube channels 56% 34% 12% 2% 2007 2009 2007 2009 ready to be fully social. Interestingly, Toyota CEO controlled YouTube site is an easy, straightforward Akio Toyoda has a blog but uses an alias: “Morizo” and simple way to add some personality and human- on Toyota’s Gazoo e-commerce and networking site ity to the role of CEO and to tell the company story in Japan. in a compelling way. Videos can be scripted, edited and shared virally. They also provide an opportunity Video is under-utilized as well. Despite the near for a CEO to offer a more relaxed, appealing and doubling of corporate YouTube channels among the conversational message than might be otherwise companies researched from 2007 to 2009, only 12% traditionally available. Recent Weber Shandwick of their CEOs were featured on their video channels research among executive communications profes- in 2009. GE’s chairman and CEO Jeffrey Immelt was sionals found that video was the preferred form of featured more than any other top 50 global CEO on communication, yet was the least-used medium for its company YouTube site, followed by Mexican pe- showcasing CEOs today. troleum company Pemex’s CEO Jesus Reyes Heroles. This finding is surprising considering that a company- In an age of see-thru reputation where everyone is indexed, CEOs appear to be overlooking the funda- mental advantages of the Internet age. As leaders come to fully realize that they must be What Messages are 36% of content providers of the highest order, greater participation in the social media world order seems CEOs Conveying Online? inevitable. As CEOs become more comfortable engaging online, their online participation— be it Weber Shandwick analyzed the content of the video, podcast, internal blog or Facebook— will social CEOs, excluding shareholder and investor help shape their company reputations as well as their messages. For the most part, they are sharing own. This is not to say that CEOs need to engage corporate and CEO leadership news. For example, all or most of their time online, but they should at they impart forward-looking company or industry the very least have a presence online. Adopting one or more of the many social media outlets available news, post links to recent CEO public appear- today and limiting usage to what is feasible would ances, discuss significant company partnerships, seem more than a reasonable use of a CEO’s time. and share the company story. A few CEOs are on Forrester’s CEO George Colony said on his CEO the defensive, combating negative public opinion blog, The Counterintuitive CEO: “The Social CEO or reassuring stakeholders that they are trying hard should not be chasing followers. He should be Social to mend their damaged reputation. Light— blogging six to eight times per year and posting on Twitter 12-24 times per year. This level of |8|
  • 10. presence will reveal the broad thinking of the CEO, As President Obama’s senior adviser David Axelrod while matching up with the time demands of running said, “The reality is you cannot operate in this a company.” environment passively. If you do, the coverage and events will be shaped for you. Things that The failure to maintain an online presence may have a may seem like trivial distinctions can become marked downside. For most companies today, the ma- large problems in terms of communications un- jority of their constituencies are now online and CEOs less you’re aggressive about engaging. We didn’t should be where stakeholders are likely to be listening, create the environment. We didn’t make the rules. watching and searching. Lack of an online presence But we have to live with it.” may easily be misinterpreted as evidence of an attempt to hide unpleasant facts or, even worse, being uncom- municative. Weber Shandwick believes that CEOs need to play some role online today, however limited, because whether six out of 10 CEOs acknowledge it or not, presence online serves as the face of a company and helps protect and build reputation. Why are 64% of CEOs (Un)Social? Possible reasons abound... • Some argue that engaging online is of secondary importance and that CEOs should spend the majority of their time face-to-face with customers, employees and other hard-to-reach constituencies. Such upfront and personal efforts require extensive travel, late nights and back-to-back meetings that severely limit the ability to communicate and regularly participate online. • CEOs aren’t convinced of the ROI from online engagement. • CEOs of the world’s most powerful companies are older and may not be as comfortable communicating through online channels (the average age for the CEOs in our sample is 57). • CEOs are apprehensive of online engagement in general. • Constraints from the legal team, corporate communications and investor relations may make it difficult, even impossible, for many CEOs to interact online. • Aversion to being seen as a “celebrity CEO” or sensitivity to overshadowing the organization. • Regional and cultural differences may not yet make online a viable communications tool. |9|
  • 11. Section 2 Traditional CEO Communications In addition to examining online communications, we also analyzed the extent to which traditional communications remained prevalent among CEOs. According to our analysis, CEOs were not silent. During the last year, the vast majority— 93%— communicated externally in traditional fashion and did so in a variety of ways— from being quoted in the top media, to speaking at influential conferences and top-drawer business schools. Traditional media was by far the most common form quoted in more articles than more admired of CEO communication in 2009— 93% of the CEOs company CEOs. This difference is significantly analyzed were quoted in the major global news and driven by CEOs in intensely scrutinized sectors such business publications. [Weber Shandwick counted as financial services and automotive who received inclusion in the major global news and business media much of the blame for the economic meltdown and when an individual CEO was quoted in a publication were called upon to comment on their actions and offline, regardless of whether it appeared online as unfolding events. well.] CEOs were quoted about a wide range of news and informational content, including new product or technology introductions, leadership transitions, CEO offline external financial performance, business strategy, the economy, government regulations, philanthropic activities, and communications activities in 2009 sometimes apologies for, or in defense of, wrongdoing. Any speaking engagement to Whether in spite of or because many CEOs and an external audience = 40% } their companies suffered significant reputational blows in the past year, CEOs did not pull back from 93% traditional media— newspapers, magazines and news services— but used them as vehicles to narrate 33% 23% 10% their company point of view and tell the story as they saw fit. In 2009, the world’s top CEOs were quoted Quoted in Gave Participated Interviewed 28% more than in 2007. This increase in CEO quotes major global news speech in Five-Star by top in the traditional news media held for both U.S. and business Conference* business and EMEA CEOs (43% vs. 25% increases over 2007, media article school respectively). Less admired company CEOs were * premier business leadership conferences identified by Weber Shandwick | 10 |
  • 12. Average number of global major business articles in which CEOs* were quoted *Top Global Company CEOs +28% 213 272 2007 2009 CEOs on the Speaking Circuit Whereas CEOs’ use of traditional media is ubiquitous and con- sidered part of their job, the speaking circuit for CEOs and other executives is a rapidly growing means to communicate externally. Speaking publicly is a strategically smart way to Other findings include: engage face-to-face with customers, prospects, peers • U.S. CEOs were more than twice as likely to and talent. Weber Shandwick identified a 29% increase speak externally than EMEA CEOs in 2009 (70% from 2007 to 2009 in top 50 global CEO conference vs. 30%, respectively). speeches, not including investor conferences. • CEO participation in speaking engagements Four in 10 top 50 global CEOs (40%) gave a speech increased with tenure— half of all CEOs in in 2009, with nearly one in four (23%) speaking at an office for five years or more (50%) addressed an esteemed Five-Star conference. Five-Star conferences external audience through speaking engage- include forums such as Fortune, Wall Street Journal ments compared to nearly one-third (32%) of and Forbes CEO conferences, the World Economic those in office three years or less. Clearly, as Forum and Clinton Global Initiative. Although tradi- longer-tenure CEOs begin contemplating their legacies and how to position their companies tional, conferences are an effective and less risky way for the next generation, CEOs take their role as to advance company business and positioning with content providers more seriously. receptive audiences. Business school forums were chosen by 10% of the leading CEOs audited as an external communications vehicle. As the economy recovers, Weber Shandwick CEO Speaking Engagements* expects this type of forum to increase as CEOs go on the *Excluding Investor Conferences campaign trail to attract the best talent. We anticipate a rise in CEO commencement speeches as well since these speeches are readily rebroadcast online as well as being 31% 40% reported in the traditional media. In 2010, notable CEOs speaking to university graduates included JPMorgan- Chase CEO Jamie Dimon (Syracuse University), General Electric CEO Jeffrey Immelt (Hamilton College) and 2007 2009 Amazon CEO Jeff Bezos (Princeton University). | 11 |
  • 13. Section 3 the Future of CEO External Communications Despite all the talk about the demise of traditional media outlets, it still remains the preferred outlet for CEO exter- nal communications. The traditional media still wants to hear from the person at the top. What is changing is how CEOs are slowly coupling their traditional media engage- ment with social networks and channels where they can reach more stakeholders and give their companies a much needed human face or connection. The four in 10 CEOs in this analysis who are socializing their brands online may now be perceived as trailblazers but in short order, will be expected leadership behavior. | 12 |
  • 14. Six Rules of the Road CEOs need to be in greater control of their online as well as offline communications, known as “inline” communications by Weber Shandwick. As attention on CEOs continues to be more about wrongdoing than rightdoing, CEOs must be more active as chief storytellers. Weber Shandwick recommends that companies seriously consider the following to enhance their leadership reputations in this Internet era and demon- strate that they can adapt to market dynamics: 1. Identify best practices of your competition and best-in-class communicators. Then establish and stretch your own comfort zone. 4. Develop a C-suite social media strategy. C-level executives should strategically select social media outlets to get the company point of view Audit the competition and best-in-class communica- across and that fit with the company’s overall commu- tors to determine the right balance between CEO nications strategy. This top-level participation online offline and online communications. This analysis needs to take into account any regulatory restrictions should take into account that online communications and legal considerations. are meant to supplement traditional offline com- munications from the top, not replace them. Realize that the CEO’s online comfort zone may not extend beyond posting video of a speech on the company 5. Simulate or test drive social media participation. Understand what you’re getting into before you go live. CEOs and the corporate communica- website, so use it and refresh often, continuously tions team should test the waters in a simulator expanding the online comfort zone. setting to get the CEO comfortable with using the medium and identify any channels that simply don’t 2. Start with the fundamentals (e.g., videos or photos online). Inventory and aggregate existing CEO communications for repurposing work to the CEO’s best advantage. This exercise will also help establish a realistic time commitment for online engagement. online. Actively aggregate CEO external com- munications (e.g., speeches, investor conferences, university appearances, annual report and social responsibility report letters from the CEO, video, 6. Accept the fact that Getting Social needs to be part of your corporate reputation manage- ment program. Purposefully manage your corporate op-eds) and repurpose and reverberate online and and social reputation. Weber Shandwick provides offline to ensure top search engine visibility and counsel on how CEO and corporate reputations are forge a sharper and more transparent executive voice best built in today’s shifting business landscape. for the company. Included in that counsel and research-backed advice are recommendations on building social 3. Learn story sharing. Craft a narrative that cap- tures the attention of target audiences. Weber Shandwick conducts workshops to train executives in CEO reputations in addition to traditional ones. crafting a narrative and sharing stories that achieve business goals and advance the business. It provides a step-by-step process for turning messages into stories that capture attention, resonate and deliver a call-to-action for stakeholders. | 13 |
  • 15. For more information about this study or additional thought leadership, please contact: Andy Polansky Gail Heimann President Vice Chair 212.445.8102 212.445.8117 apolansky@webershandwick.com gheimann@webershandwick.com Colin Byrne Cathy Calhoun CEO, UK & Europe President, North America 44 20 7067 0191 312.988.2375 cbyrne@webershandwick.com ccalhoun@webershandwick.com Tim Sutton Baxter Jolly Vice Chair, Asia Pacific Chairman, Asia Pacific 65 68258001 852 2501 7907 bjolly@webershandwick.com tsutton@webershandwick.com Leslie Gaines-Ross Chris Perry Chief Reputation Strategist President, Digital Communications 212.445.8302 212.445.8007 lgaines-ross@webershandwick.com cperry@webershandwick.com James Warren Ian Rumsby Chief Creative Officer, Digital EVP, Client Strategy, Asia Pacific 44 20 7067 0503 61 413 026 740 jwarren@webershandwick.com irumsby@webershandwick.com Micho Spring Paul Jensen Chairperson, Global Corporate Practice Chairperson, North American 617.520.7075 Corporate Practice mspring@webershandwick.com 212.445.8066 pjensen@webershandwick.com You can also visit: References for Getting Social or Socializing Your CEO www.webershandwick.com 5 Reasons CEOs Hesitate to Adopt Social Media Forrester’s The Social CEO UberCEO: Fortune 100 CEOs are Social Media Slackers The Altimeter Group’s Founder Charlene Li, Open Leadership | 14 |