Government & Stakeholder Relations

Organisations are increasingly trying to influence the narrative around societal issues in their public discourse and engagement.

Their audience is a broad range of stakeholders, including regulators, customers, employees, local communities and shareholders.  Our latest data shows that more than half of businesses strongly agree that their company should be run in the interest of all stakeholders, not just shareholders. In uncertain times, good stakeholder relationships are more critical than ever.

The nature of the crises that companies are facing, their ability to monitor and plan for risk, and the way in which they respond to crisis scenarios is rapidly changing. The pandemic, climate crisis, complexities of technology and social media are all driving increased geopolitical risk and a need to seek multi-lateral response to our most pressing economic and societal challenges.

A growing drive to engage with these societal issues forms part of a wider understanding amongst G20 companies that there is increasingly a positive correlation between those companies that are vocal about social issues, and value creation. Business leaders increasingly appreciate the need to have a clear voice and purpose, with the C-suite under growing pressure to effectively communicate on issues beyond the boardroom.

LEADERSHIP CLARITY IN TIMES OF INCREASINGLY DYNAMIC STAKEHOLDER SCRUTINY

Corporate focus has shifted from response and recovery, to resilience as the global economy bounces back from the worst effects of the pandemic. Firms are approaching resilience holistically, futureproofing and adapting their business model to ensure sustainability. This transformation takes place against a backdrop of concerted regulation that does not appear to be abating as the pandemic slows, increased government intervention in the private sector including across borders, and growing protectionism.

COVID-19 BOUNCE-BACK, BUT THE REGULATORY GOALPOSTS ARE CHANGING

Renewed activity in M&A including divesting of assets that challenge net-zero ambitions, investment in new, future technologies, as well as the prominence of the ESG agenda is coupled with an expectation that scrutiny will grow. Recent developments demonstrate renewed focus on ensuring competition both now and in the future, not only from a markets’ perspective, but equally from a political and national security agenda. Public affairs issues will become increasingly multi-jurisdictional and multi-thematic given the complexity of supply chains and increasing and complex policy actions taken at varying levels whether nationally, regionally or globally.