Interaction of crisis leadership & corporate reputation

Abstract

Effective leadership in dealing with a crisis is of critical importance since crisis situations often put companies or organizations at high risks threatening their reputation, stability & survival. Considering that a crisis can present itself in a number of different ways, as well as there are multiple factors that affect individual leadership styles. a leader must be able to distinguish between these ways and adapt the right style and behaviours accordingly. This paper, through a critical literature review methodology, explores ‘how’ leadership underpins corporate reputation in a crisis situation reviewing also the key factors influencing leadership effectiveness in such stressful situations. The study concludes that the leadership role is important in supporting the corporate reputation in a crisis situation and suggests that practitioners must comprehend different dimensions of crisis that affect leadership styles, allowing for effective management of the situation. Additionally, the study emphasizes that different preparations, precautions and adaptations must be considered before choosing a leadership style to effectively navigate the organisation through crisis. The study confirms that a good reputation helps corporations to gain the trust of consumers and reduce the losses caused by the crisis, as well as corporations in crisis should choose appropriate leadership style so that leaders to create a culture that could predict threats and risks.