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.