Reputation: The Hidden Asset That Defines Boardroom Success
Reputation has never been more critical for today’s board members. In a recent episode of “Academia de Guvernanță”, Adriana Lobdă, Founding Member ENVISIA – Boards of Elite, and Marilena Popovici, Executive Vice President of Finance at BCR Banca pentru Locuințe, shared powerful insights on why reputation must be front and center for boards. They argued that in today’s fast-moving world, reputation is no longer just an outcome of good governance — it is at the heart of it. "Academia de Guvernanță" is a project developed by Envisia-Boards of Elite in partnership with Profit.ro.
Reputation isn’t merely an intangible concept; it directly drives business outcomes. According to Adriana Lobdă, Foundig Member Envisia, over 70-80% of listed companies’ market capitalization is linked to intangible assets like brand equity, intellectual capital, and, crucially, reputation. Even more striking, a 1% increase in reputation can boost profits by up to 3%. This powerful link makes it imperative for boards to establish clear strategies for monitoring and managing reputational risk.
This theme was further explored by Marilena Popovici, who took a deep dive into the role of reputation in Romania’s financial sector as part of the Henley MA Board Practice and Directorship program from ENVISIA. Her research was sparked by the 2008 financial crisis — a moment that exposed cracks in the reputation of the financial industry’s leaders. Popovici’s work underscores that board reputation doesn’t just shape perceptions; it actively drives culture and performance at every level. Yet, gathering these insights was no easy feat. “I conducted 15 interviews with top leaders, but faced cultural barriers around recording conversations,” Popovici recounted. Instead, she relied on carefully documented notes to confirm her findings — an approach that highlighted both the sensitivity of the topic and the importance of transparency.
Her research found that a strong board reputation is built on a foundation of knowledge, honesty, integrity, and visibility. Education also emerges as a game-changer, essential for boards to harness reputation as a true competitive advantage. “Reputation is a defining element, but it’s not enough on its own. Over time, it needs to be matched with knowledge to truly become an advantage,” she explained.
Adriana Lobdă builds on this insight, stressing that entrepreneurs who want to establish boards — whether consultative or formal — must approach the process with discipline and objectivity. “This isn’t about friendships or subjective evaluations. A solid board profile and careful design, supported by experts, are what’s needed,” she noted. In a world where trust and image are increasingly fragile, boards play an irreplaceable role in safeguarding and growing an organization’s reputation.
Follow the entire discussion HERE.
These Academia de Guvernanță conversations echo ENVISIA’s mission to equip board members and C-suite professionals to meet the challenges of modern governance. Through world-class education and consulting, ENVISIA ensures leaders understand that reputation isn’t just image — it’s a critical form of capital that drives long-term success.
Facebook
Linkedin
BACK TO ARTICLES
