Do CEOs active on social media pose a risk to companies goodwill?
Zomato chief executive office (CEO) Deepinder Goyal's recent post listing the criteria for hiring a chief of staff went viral-largely due to the wrong reasons. The social media uproar over the issue of the candidate paying ₹20 lakh to the company and drawing no compensation for a year prompted Goyal to reveal that the requirement to pay ₹20 lakh was just a filter to find the right candidate.
It is the second time that the CEO had to issue a retracting statement. Earlier in March, Zomato rolled back its plan to colour code its veg fleet following social media backlash to Goyal's previous day's announcement of the plan.
Changing decisions based on social media reaction may appear to be a sign of a responsive management, but repeated instances may create a perception that undermines the decision-making of the top management. It may also attract regulatory scrutiny stock valuation is impacted.
Last month, a social media spat involving Ola Electric's CEO and a standup comedian shaved off over ₹7,000 crore from the market cap of the electric vehicle company. The Ola stock is now trading below the IPO offer price.
Digital payments platform Paytm recently issued an apology on X for a controversial post made by its CEO Vijay Shekhar Sharma on the demise of Tata group veteran Ratan Tata.
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