Page 42 - The Corporate Report Pack

With industry, it’s evident that government has a strong grip on some industries and a light touch on others (see Figure 4: CEOs say government has a very high impact on business strategy). Although 69% of CEOs say that government has a high or very high impact on business strategy, there is a broad spectrum with over 94% of CEOs from insurance and 89% of CEOs from pharmaceuticals and life sciences agreeing, compared to half of CEOs from retail and technology. Again, when governments implement plans to achieve the SDGs, will these industry CEOs be the ones reporting even greater levels of government impact, and will other industries start to feel the bite of regulation and what it means to operate in a more structured or regulated environment?
Looking from inside out
Chief exective o cers are cognisant of how their business activities play out on the public stage, and are rede ning what they do, the way they do it and how they communicate it as a result. When business makes a judgement error on what’s important, there are serious consequences. e public takes notice of the environmental devastation (for example, collapsed buildings, terrain destroyed, rainforests attened, water polluted), the human rights abused, the lives lost from poor health and safety practices, and so on. And for a business, this manifests itself
in nes, closure, bankruptcy, reputation damage, erosion of trust, and so on. It hits and hurts the bottom line as well as society and the environment, and can generate a government reaction and new regulation in response.
Many CEOs tell us they are building their business with corporate responsibility (CR) at the centre of its activity – 64% of CEOs saying it is core to everything they do. Corporate responsibility is o en the starting point for more responsible business practices, but it needs to be embedded right across the business and decision making. In recent years, CR and the positive communications that have emanated have been tainted by accusations of greenwashing as other parts of the business lag behind in their sustainable thinking.
No doubt it will always be said that business exists to make a pro t. To a great extent this is true; if a company doesn’t make a pro t, it’ll soon be out of business. But there is real recognition that it’s not all about making a pro t. Of CEOs, 82% say they prioritise long-term over short-term pro tability and 76% of CEOs say business success is about more than just nancial pro t (see Figure 5: CEOs take a new perspective on pro t).
With the Edelman Trust Barometer* reporting high levels of consumer disbelief, it can be no surprise
Question: What impact do government and regulators have on your organisation’s strategy?
These respondents stated ‘high’ or ‘very high impact’.
100%
80%
60% 69% 40%
20%
0%
94%
89%
87%
84%
83%
83%
86%
77%
69% 69% 68% 68%
63% 62% 61%
66%
63%
59%
58% 55%
50% 49%
Figure 4: CEOs say government has a very high impact on business strategy (by industry)
8 The Corporate Report
Business through a new lens
Global total
Insurance
Pharmaceuticals and life sciences
Healthcare
Banking and capital markets
Power and utilities
Asset management
Communications
Hospitality and leisure
Engineering and construction
Consumer goods
Energy
Mining
Automotive
Transportation and logistics
Chemicals Entertainment Business services Metals
Industrial manufacturing
Forest, paper and packaging
Retail Technology