The latest Oxford-GlobeScan Corporate Affairs Survey, now in its fifth year, offers a sobering glimpse into the challenges facing global businesses. The 2024 report, which collates insights from 227 senior professionals surveyed in March, highlights a landscape fraught with geopolitical tensions and economic uncertainties.
For the third consecutive year, geopolitical risk tops the list of concerns for corporate affairs professionals (p. 5). The protracted conflict in Ukraine, escalating East-West tensions, and the emergence of a new conflagration in the Middle East have entrenched these worries. A staggering 70% of respondents cited geopolitical uncertainty as their primary concern, a marked increase from the previous year.
Climate change maintains its position as the second most pressing risk, underscoring the persistent urgency of environmental challenges (p. 5). However, it's noteworthy that climate-related issues have seen a gradual decline in prominence since 2021, potentially reflecting a shift in immediate priorities amidst acute geopolitical pressures.
Oxford-GlobeScan Global Corporate Affairs Survey 2024, p.5
The spectre of political populism looms large, with nearly half of the respondents viewing it as a "very high risk" to their business operations (p. 8). This perception has been on an upward trajectory since 2020, indicating a growing unease with the potential for disruptive political shifts.
Interestingly, while artificial intelligence (AI) is perceived as a rising risk, it simultaneously represents the most significant opportunity for global businesses (p. 6). This paradoxical view suggests a complex relationship with technological advancement, where potential benefits are weighed against perceived threats.
The survey also reveals a continued focus on Environmental, Social, and Governance (ESG) priorities. Climate change mitigation and adaptation, alongside governance and ethics, remain at the forefront of corporate concerns (p. 12). However, the landscape is not uniform; North American respondents report increased resistance to ESG initiatives, while their counterparts in Africa and Asia perceive a reduction in such resistance (p. 13). Also, Latin America and Asia-Pacific respondents indicate a strong concearn over greenwhashing allegations (p. 14).
Oxford-GlobeScan Global Corporate Affairs Survey 2024, p.13
Perhaps most telling is the evolving role of corporate affairs itself. Stakeholder engagement emerges as the fastest-growing responsibility within the function (p. 17), highlighting the increasing importance of managing diverse relationships in a complex global environment.
Oxford-GlobeScan Global Corporate Affairs Survey 2024, p.17
As businesses navigate these turbulent waters, the ability to analyse geopolitical risks, construct robust future scenarios, and engage effectively with a broad spectrum of stakeholders will be crucial. The Oxford-GlobeScan survey serves as a valuable barometer, guiding corporate strategy in an increasingly unpredictable world.
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