7 RESILIENCE LEVERS

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.

OF COMPANIES BELIEVE THAT THEIR LEADERS ARE BETTER PREPARED FOR FUTURE CRISES

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.

OF COMPANIES REPORT BEING UNDER EXTREME PRESSURE TO IMPROVE REGULATORY SAFEGUARDS

GLOBAL ISSUES CALL FOR GLOBAL ACTION

Whilst technological shifts, including the exchange of data, have occurred to improve supply chain resilience, 58% of G20 companies agree that their company does not fully understand the cybersecurity risks posed by third parties. In addition, the use of new technologies comes with increased risk of scrutiny and regulation especially in the context of virtual assets and cryptocurrencies. With this backdrop, one of the policy responses to improving supply chain resilience has been the increase in protectionism in advanced economies, often premised on ensuring national security. Despite this, a significant number of corporate leaders admit that they are not taking proactive steps to address supply chain risk.

Given the complexity of issues at hand around data, AI, ESG etc. a multilateral approach can prove effective to overcome national barriers. However, navigating these institutions is somewhat of a black box for the corporate sector. A well-structured, data-led and multi-stakeholder public affairs programme can unlock the potential of operating at this scale.

Despite increasing treads towards great protectionism within the global political sphere, the COVID-19 pandemic, as well as the climate crisis has highlighted the importance of a multilateral response to our most pressing challenges. There are positive signs that global partnerships are still possible. 

82%

OF G20 BUSINESS LEADERS BELIEVE THEY SHOULD PUBLICLY ENGAGE WITH PRESSING SOCIAL OR POLITICAL DISCOURSE.

74%

OF G20 COMPANIES HAVE BEEN NEGATIVELY IMPACTED BY TARIFFS AND OTHER TRADE RESTRICTIONS

INSIGHTS

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The roadmap to a low cost, secure, low carbon future, or simply high level ambition?

APRIL 8, 2022 - Against the backdrop of global gas supply issues, the need to accelerate progress on net zero, soaring inflation and a cost of living crisis, the Energy Security Strategy is critical for Government to demonstrate delivery on its political agenda in the energy sector. However there are little in the way of quick wins, and a huge amount of work for the sector to meet these ambitious new targets.

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Combating Corruption to Create a Sustainable Path of Future Growth for South Africa

The FTI Consulting South Africa Resilience Barometer report published in October 2021 set out to chart the areas making the top of the board meeting agenda for South African executives – the C-Suite – and provide fact-based and timely insights to enable clear-headed decisions in a volatile and changing environment. However, despite the widespread negative economic impacts of the COVID-19 pandemic, the current political climate provides a unique opportunity to reinvigorate the country’s fight against corruption.

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The Decade of Disputes - No barriers to antitrust claims from corporate activists

An analysis of competition policy social conversation has found that news coverage around the topic of antitrust has created a network of online commentary relentlessly focussed on so-called big tech companies. This provides the backdrop and context for future news coverage – creating a perpetual news cycle on big tech and antitrust.

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EU Export Controls on Dual-Use Goods: The Latest Update

September 10, 2021—Nearly five years after the European Commission proposed to overhaul Council Regulation (EC) No 428/2009, an updated version was published in June 2021.1 EU Regulation 2021/821, referred to here as “the Recast”, is effective from 9 September 2021 – but what does it mean for industry?

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Part Three - Bold Moves Needed by Airports and Airlines

September 7, 2021 - In the context of these challenges, in Part Three we outline the tangible steps that can be taken by operators within the industry to weather the upcoming storm.

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Part Two - Flight Through the Danger Zone

August 24, 2021—In this part two of three thought pieces, “Flight through the Danger Zone”, we further demonstrate the key dynamics at play within the industry, and why the next 24 months will be so critical.

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Looking to the Horizon – The Pitfalls on the Path to Net Zero

August 9, 2021—A ‘perfect storm’ is developing, bringing a wave of climate change-related disputes, super-charged by the £2Bn of cash held by the UK’s litigation funders.

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Successfully Flying Through the Danger Zone

August 9, 2021—Our latest FTI Consulting analysis shows that although the European aviation industry has so far avoided bankruptcies and consolidation due to government support and availability of new capital, they may now be at a crucial tipping point, particularly when faced with an uncertain recovery. 

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Effective Whistleblower Programmes and Their Impact on Ethics, Culture and Conduct

August 5, 2021—In Risk & Compliance magazine’s expert forum, FTI Consulting’s Wayne Anthony and Piers Rake discuss the importance of whistleblower programmes and how to ensure whistleblower confidentiality while conducting an effective investigation with Novartis’ Robert Sikellis and Withers’ Meriel Schindler and James Hockin.

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Economic Regulation of the Electricity Sector in Ivory Coast

July 8, 2021—On 1 January 2021, the 12-year agreement was signed last October between the Government of Ivory Coast and the country’s integrated electricity utility CIE (Compagnie Ivoirienne d’Electricité) became operational, establishing one of the first incentive-based regulatory regimes in Africa.

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Leading from the front: Effective social media engagement for business leaders

May 21, 2020 - Leadership in the age of social media - Social media has fundamentally transformed the way that leaders communicate. As employees, investors, media and the public have become accustomed to using social media channels, an increasing number of business leaders are seeing the opportunities to engage with these audiences on the channels where they are spending their time.

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Sanctions: Am I Off the Hook?

May 13, 2021—Sanctions are not new. In 432 BC, at the pinnacle of the golden age of Greek democracy flourishing in the mighty Athenian Empire, its ‘first citizen,’ eloquent orator, brilliant general, yet unfortunately last leader Pericles decreed trade sanctions on the neighbouring Megara of the opposing Peloponnesian League, which was led by oligarchic Sparta.

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Leading from the Front: Successful Strategies for the Social CEO

January 13, 2021 - Most large companies have embraced social media channels to communicate with their customers, employees, investors and other audiences. From Twitter to Facebook, and Instagram to LinkedIn, the last decade has seen businesses engage on these platforms in increasingly sophisticated ways.

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The CEO Brand and Its Impact on Business

July 10, 2020 - New research by FTI Consulting sheds light on the role of the CEO on a company’s valuation. While this is one factor among many, the research indicates that companies whose CEOs demonstrate strong leadership, and were publicly vocal, better withstood the negative impacts of the initial stages of the COVID-19 pandemic. This stronger investor confidence translates into as much as US$260 billion in additional shareholder value.

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