Dubai (Union)
A recent survey of global CEOs and investment institutions revealed broad consensus on the declining pace of globalization, with CEOs and investors proceeding to formulate their business plans for the year 2023. Of the 300 CEOs of global listed companies and major institutional investors, there are certain actions business leaders take to address the forces of radical change, including economic and political conditions, the environment, governance, sustainability, human talent and innovation.
Commenting on the survey results, Paul Kerrey, CEO of Teneo, said: “The degree of complexity and uncertainty facing CEOs around the world has reached unprecedented levels, as the sheer volume of macro issues places an additional burden about companies taking steps to control their own destiny in a highly deglobalized world, these dynamics should create opportunities for companies that are more resourceful and decisive in their decision-making.
Ursula Burns, president of Teneo, said: “Today, more than ever, it is important for CEOs to clearly understand how investors view the overall path of the global economy and what the market expects of them as a result. Traditional approaches do not are more applied today. Without a doubt, there will be losers and winners in the new work environment and success will be the ally of those who are best able to adapt quickly and effectively.
Regarding the macroeconomic outlook, the survey results confirmed that senior CEOs’ expectations are negative on the economic climate in the first half of 2023, as 73% of them expect a worsening of economic conditions. However, investor expectations were generally optimistic, with 76% expecting conditions to improve.
Regarding the decline of globalization, the results indicated that 86% of CEOs and investors agree that the decline of globalization has become a tangible reality for the global economy, as almost half of them believe that the concept of globalization has already started to recede and that this reality will have a big impact.
Innovation survey results revealed that CEOs believe in the importance of investing in a wide range of innovative technologies that can bring about radical change, as CEOs adopt a conservative approach, especially when it comes to cryptocurrencies and metaverses , where the vast majority of CEOs prefer to be very cautious and avoid them.
When it comes to environment, sustainability and governance, the results confirmed that despite fears of an impending recession, 15% of CEOs give investments in environmental, sustainability and governance standards more importance than company performance among their priorities and over 60% of CEOs and investors (mostly in Asia and Europe) to balance the company’s performance with its environmental, sustainability and governance commitments.
And one in five CEOs of large companies believe they are ill-prepared to address potentially controversial social issues that may arise.
The final results of the human executive survey indicated that only 28% of CEOs confirmed that their current executive team represents the concepts and directions of future generations, while the views of CEOs and investors differed completely on the skills required for the next generation of CEOs.
