Senior execs face crisis of confidence

The Dreamworld tragedy was a textbook case of how not to handle a crisis. Photo / File

Social media, activism, and the so-called "outrage economy" are causing a crisis of confidence for top executives in Australasia, according to a new report.

SenateSHJ's Reputation Reality report showed only a third of Kiwi chief executives had confidence in their ability to handle a crisis. Australian's were even more spooked with only one in four expressing confidence.

The report surveyed 146 business and public sector leaders and corporate affairs executives across Australia and New Zealand on their perception of reputation and risk.

Episodes such as the United Airlines and British Airways crises have caused trepidation among top bosses about their own ability to manage a public relations disaster.

United Airlines chief executive Oscar Munoz was heavily criticised for his belated apology to David Dao, who was dragged bleeding from a domestic flight in Chicago in an incident that caused major uproar on social media.

In April, British Airways came under fire for refusing to let an elderly woman use the toilet.

Closer to home, Ardent Leisure executives were criticised for their poor handling of the Dream World tragedy. Shares fell as low as 12c as the company awarded the chief executive a bonus and lied about having contacted grieving families.

Senior executives across Australasia have recognised protecting their company's reputation is more important than ever.

"Almost all executives surveyed see reputation as a key component of their success, while the risks to their reputation have grown significantly over the last three years, with almost 75 per cent having seen an increase in risks affecting reputation," said SenateSHJ general manager Raphael Hilbron.

"Only one in three respondents have high confidence in their ability to roll out their crisis communication plan in the event of a crisis. This is despite business leaders regarding reputation as a primary asset, and almost 90 per cent of organisations believing they are proactive in protecting their reputation," Hilbron said.