Reputational resilience: Why Indian brands must prepare for the age of polycrisis

In a world where perception can shift in a single viral moment, reputational resilience is no longer a buzzword—it’s a boardroom imperative.

A recent global study by Bully Pulpit International unearthed a sobering insight: 53% of consumers are likely to believe any single piece of misinformation about an average company. The implications for Indian brands are profound. In a hyper-connected country with 800 million internet users and one of the world’s most active social media ecosystems, the cost of reputational damage has never been higher.

We’re not in an era of isolated crises anymore. We’re in a permacrisis—or more accurately, a polycrisis—where political uncertainty, economic inequality, environmental disasters, technological disruption, and social volatility converge to form a constant storm.

This reality demands a new kind of corporate strength: reputational resilience—the ability to absorb reputational shocks and bounce back quickly with stakeholder trust intact.

Why this matters in India

In India, public trust in institutions is nuanced. According to a trust survey conducted across four metros, only 40% of consumers believe Indian brands consistently “do the right thing,” and nearly 1 in 4 say they have no trust at all.

Even more concerning: 60% of respondents in tier 1 and 2 cities said they believe WhatsApp forwards over official company statements. This reflects a dangerous asymmetry between misinformation and credible communication.

Recent Indian examples illustrate this vividly:

•  A major Indian startup faced a social media boycott due to an allegedly insensitive ad campaign—though later debunked, it cost them nearly ₹150 crore in potential revenue.
•  A public sector bank, long perceived as trustworthy, saw a steep decline in share price after unfounded rumors about liquidity issues spread on X (formerly Twitter).

Both cases underscore the same insight Bully Pulpit found globally: Trust is not the same as resilience.

The real differentiator: Leadership with purpose

In the study, two global automakers scored the same on trust. Yet, one ranked in the 70th percentile on resilience, the other in the 22nd percentile. Why? Consumers were more likely to believe damaging allegations against the latter—from unethical labor practices to environmental violations.

The Indian parallel: Tata Motors and Mahindra are both trusted brands. But in times of crisis—say, an EV battery malfunction or ESG scrutiny—Their legacy of values-led leadership (often embodied by promoter’s persona) gives it a reputational buffer that others envy.

Across all markets studied, including India, the most important driver of resilience wasn’t ESG scores or DEI initiatives—it was leadership that cared about something beyond profit.

As one CXO respondent from the survey put it:

“I don’t care how much the brand gives to charity. I care if their leadership stands for something, treats employees fairly, and makes me feel like they’ll do the right thing when it really matters.”

What Indian brands must do differently

Here are six lessons Indian communicators, CEOs, and brand custodians must take away:

1. Shift from defence to recovery

Every brand will get hit. It’s no longer about preventing crisis—it’s about how fast you bounce back. Brands need real-time war rooms, not just post-crisis whitepapers.

2. Move from diffuse messaging to a singular narrative

Indian companies often tell too many stories: sustainability, inclusion, tech-led innovation, employer brand. But only one or two resonate deeply. Identify the most meaningful narrative and amplify it relentlessly.

3. Invest in everyday reputation capital

The study rightly points out: the difference between a 1-week issue and a 10-year crisis lies in what you did before the crisis hit. Brands like Amul and HDFC have built decades of goodwill, and that pays off when under fire.

 4. Audit your reputation vulnerabilities

Just because your brand is trusted overall doesn’t mean it’s bulletproof. A bank may be admired for its returns but vulnerable on tech adoption or workplace culture. Conduct reputation stress tests across dimensions.

5. Be present where misinformation brews

Most Indian brands still lag in digital listening. You need active social media surveillance, not just periodic brand tracking. Your audience is forming opinions in Reddit threads, YouTube comments, and local language memes.

6. Train your spokespersons

Consumers will forgive a misstep. They won’t forgive cold, robotic, or evasive communication. In a crisis, your leader becomes the message. Invest in media training, authenticity coaching, and crisis simulation.

Final thought: Resilience is a daily investment

Reputational resilience is built in peacetime, not wartime.

You can’t spin your way out of a polycrisis. What you can do is prepare: through authentic leadership, focused storytelling, credible community engagement, and relentless stakeholder relationship building.

As Mahatma Gandhi said, “A nation’s culture resides in the hearts and in the soul of its people.” For brands, reputation resides in the lived experiences of customers, employees, and communities. Make every touchpoint count.