According to the 2026 UK Reputation Valuation Report by Echo, corporate reputation now accounts for more than a quarter (£841bn) of total FTSE 350 market value.

In a business environment defined by geopolitical volatility, regulatory scrutiny and rapidly shifting news cycles, business resilience and reputational strength are strategic assets. Stakeholders are scrutinising corporate behaviours more closely than ever, and reputational risk is increasingly linked with financial performance and long-term enterprise value.

To meet this challenge, corporate affairs directors are expected to play a more strategic role within organisations. This means working across functions including communications, government affairs and marketing to help their organisations stay ahead of everything from political developments, shifting stakeholder expectations and fast-moving media narratives.

This shift requires corporate affairs to be firmly embedded within the senior leadership team offering sound counsel to guide decision-makers.

Reputation as a form of capital

If reputation accounts for over a quarter of corporate value, it must be treated carefully. Yet, in many organisations, it is still managed informally, often addressed only after a crisis emerges, rather than proactively embedded into strategy.

In reality, when actively used, it can be a powerful driver of growth.

Trusted companies are able to command premium pricing, as customers are often willing to pay more for brands they see as reliable, responsible and aligned with their values. Strong reputations also attract talent, with employees increasingly seeking organisations whose purpose and culture are reflected in how they operate.

Investors similarly place significant weight on governance and leadership credibility, meaning corporate reputation can influence capital flows, market confidence and is increasingly factored into mergers and acquisition due diligence. It can also shape relationships with regulators, as organisations that consistently demonstrate integrity and accountability are more likely to maintain the trust required to operate in complex environments.

When crises do occur, companies with strong reputational foundations tend to recover more quickly and effectively. Established trust provides organisations with greater credibility and resilience, helping them navigate challenges while maintaining confidence among customers, employees and investors.

For these reasons, reputation should be seen as an intangible asset with tangible consequences. When trust erodes, markets respond quickly and sometimes severely. The principle that “planning is cheaper than fixing mistakes” applies particularly strongly to reputation. Organisations that invest early in structured reputation strategies and corporate affairs hires significantly reduce their exposure to reputational risk.

From communication expertise to commercial leadership

Historically, corporate affairs was primarily associated with communications; managing media relations, shaping corporate messaging and responding to crises. As reputation’s strategic importance grows, so does the role of the corporate affairs director and their responsibilities now represent part of a much broader mandate.

Corporate affairs leaders are increasingly expected to interpret the external environment and understand how it affects business strategy, translating those signals into insights that inform leadership decisions.

In many organisations, the function now sits at the intersection of communications, strategy, governance and external risk.

Boards are looking for leaders who can connect reputation to commercial outcomes. Reputation influences investor confidence, regulatory relationships and competitive positioning, meaning reputational issues must be framed as strategic business considerations.

This evolution marks a clear shift from communications and reputation specialist to commercially minded strategic advisor as reputation management is integrated into core business strategy.

The next generation of board-grade corporate affairs leadership

Today, the most effective leaders increasingly act as strategic integrators, connecting geopolitical developments, regulatory shifts, media narratives and stakeholder sentiment into a coherent strategic view of risk and opportunity. This requires close collaboration across functions such as risk, finance, marketing and public policy, ensuring external developments inform enterprise-wide decision-making.

Boards also expect stronger commercial and financial acumen. Understanding how reputation influences valuation, investor sentiment and deal outcomes is becoming essential, particularly during periods of transformation or heightened scrutiny.

At the same time, geopolitical and policy literacy is growing in importance. Businesses are operating in an environment defined by trade fragmentation, sanctions and tariffs, regulatory activism and political volatility. Leaders who understand these dynamics are better equipped to anticipate emerging risks and guide organisations through complex external challenges.

Beyond communications expertise, boards increasingly value leaders who demonstrate strong crisis judgement and board-level credibility. Corporate affairs leaders are more frequently involved in discussions around risk, governance and crisis preparedness, helping organisations navigate situations where reputation, regulation and corporate strategy intersect.

Together, these shifts reflect a broader transformation. Reputation is now a core business asset and managing that asset requires a new generation of corporate affairs leaders operating at the heart of strategic decision-making.

Hannah Peech is a principal in Heidrick & Struggles’ London office and leads the Corporate Affairs & Communications Practice in Europe, the UK and Africa.