The Corporate Governance Institute warns that corporate leaders can no longer hide from digital image and the viral scrutiny that might come with it.

In today’s digital age, it is almost impossible to brush over viral moments as social media, AI tools and the 24-hour news cycle have resulted in a new governance and executive risk outlook. Technology has made it impossible to avoid viral moments and public scrutiny. Any moment caught on camera and worthy of content could become a turning point for a company, regardless of whether it is during work hours or a private night out.

According to Ciaran Bollard, CEO of The Corporate Governance Institute, corporate leaders must realise the risk of personal missteps and how quickly scrutiny can start.

“It is important for executives to be both proactive and reactive in their engagement with the digital landscape, including online posts, tweets and even in their personal lives. A single sentence or moment can amplify public perception and lead to mistrust in the company, making it challenging to control the narrative.” Bollard says.

There is a critical need for stronger governance training to ensure leaders are well-equipped for moments of crisis.

“Boards are responsible for ensuring executives are proactive, digitally literate and trained as well as held publicly accountable in times of scrutiny.

There have been several instances of executive blunders being caught on camera over the years. In recent years, viral online attention has resulted in executives resorting to either a humiliating retreat or incorrect and unprofessional statements, which further complicate matters for the company to solve.”

Viral scrutiny is now a part of the job description for executives, as such cases become more common, especially in the age of rapid content consumption.

“Corporate bosses can no longer pretend it never happened. People demand apologies, statements and even resignations. Companies must train executives and have a plan for if and when a viral moment occurs. With social media, the company comes under the scrutiny of a global audience and would therefore require a strategic and clear plan to address the issue.

“The risk is bigger than ever – once a story breaks, leaders and companies must act quickly. Acting at speed helps to prevent the story from getting warped in further speculation and separates the actions of an executive from the company.

“The company’s reputation is affected regardless of the truth of the matter, and in most cases, prospects will take a hit. Companies must be prepared for a potential viral moment. It is important to have the right PR strategy in place as well as clear channels of communication with stakeholders.

Bollard concludes: “Boards and executives need continuous training and education in the digital era of governance and stakeholder engagement. Companies must act fast, decisively, and be able to support decisions when stakeholders come questioning. The board must be ready to act, make tough decisions and manage a scandal to flip the script into something positive for the business.”