Climate change, geopolitical crises, social instability and income and wealth inequality are threats to business – but they also pose opportunities for impact.
Business continues to play a critical role in society, according to the 2024 Edelman Trust Barometer. The survey, which polled more than 32,000 citizens across 28 countries, finds that business is the most trusted institution to integrate innovation into society. Business is also seen as more competent and ethical than governments, NGOs and the media.
With this power comes responsibility – specifically, a responsibility to serve as a force for good. Indeed, 62 percent of those surveyed expect CEOs to manage changes occurring in society, not just changes in their business. But where can business make the greatest impact in today’s world, and what threats stand in its way in 2024?
For the third year in a row, we asked the INSEAD academic community for answers. A total of 55 faculty members participated in the survey, with all nine academic areas represented. The results are well aligned with recent studies by other global institutions, including the World Economic Forum (WEF), Edelman and the World Bank. While this increases our confidence in this year’s perceived trends, we acknowledge that last year’s outlook was certainly not perfect. As the last few years have proven, nothing is certain in these times except uncertainty.
Reflecting on last year’s results
Many of our perceived trends for 2023 proved accurate. Climate change, for instance, was identified as the top societal issue for business to address, and the fourth biggest threat to business. Indeed, 2023 was the hottest year on record with several extreme weather events, including tropical cyclones in the Atlantic, record temperatures in the southern United States, flooding in Greece, Turkey and India, landslides in Brazil, typhoons in China and the most destructive wildfire season in Canadian history. Some researchers now say global warming may exceed the 1.5°C threshold in just a few years.
The second most important societal issue identified by INSEAD faculty was income and wealth inequality, and this trend played out as expected. As the World Bank reported in December 2023, nearly 700 million people around the world live in extreme poverty, meaning they survive on less than $2.15 per day. In 2023, the poorest countries also remained worse off than before the Covid-19 pandemic.
While INSEAD faculty identified geopolitical crises (25 percent) and social instability (18 percent) as threats to business, it was hard to anticipate just how quickly these problems would escalate. The conflict in the Middle East was not – nor could it have been – factored into last year’s perceived trends. We also did not anticipate the acceleration of artificial intelligence (AI) issues that are now top-of-mind for business leaders.
Finally, inflation and recession risks – identified by 17 percent of faculty as top threats – did not unfold as anticipated. While high inflation contributed to the cost-of-living crisis in 2023, a global recession never transpired in the way some economists warned. Reflecting this change in outlook, only 10 percent of faculty cited inflation and recession as top threats for 2024.
And on that note, here are the top four business and society issues identified by INSEAD faculty for 2024.
With this power comes responsibility – specifically, a responsibility to serve as a force for good. Indeed, 62 percent of those surveyed expect CEOs to manage changes occurring in society, not just changes in their business. But where can business make the greatest impact in today’s world, and what threats stand in its way in 2024?
For the third year in a row, we asked the INSEAD academic community for answers. A total of 55 faculty members participated in the survey, with all nine academic areas represented. The results are well aligned with recent studies by other global institutions, including the World Economic Forum (WEF), Edelman and the World Bank. While this increases our confidence in this year’s perceived trends, we acknowledge that last year’s outlook was certainly not perfect. As the last few years have proven, nothing is certain in these times except uncertainty.
Reflecting on last year’s results
Many of our perceived trends for 2023 proved accurate. Climate change, for instance, was identified as the top societal issue for business to address, and the fourth biggest threat to business. Indeed, 2023 was the hottest year on record with several extreme weather events, including tropical cyclones in the Atlantic, record temperatures in the southern United States, flooding in Greece, Turkey and India, landslides in Brazil, typhoons in China and the most destructive wildfire season in Canadian history. Some researchers now say global warming may exceed the 1.5°C threshold in just a few years.
The second most important societal issue identified by INSEAD faculty was income and wealth inequality, and this trend played out as expected. As the World Bank reported in December 2023, nearly 700 million people around the world live in extreme poverty, meaning they survive on less than $2.15 per day. In 2023, the poorest countries also remained worse off than before the Covid-19 pandemic.
While INSEAD faculty identified geopolitical crises (25 percent) and social instability (18 percent) as threats to business, it was hard to anticipate just how quickly these problems would escalate. The conflict in the Middle East was not – nor could it have been – factored into last year’s perceived trends. We also did not anticipate the acceleration of artificial intelligence (AI) issues that are now top-of-mind for business leaders.
Finally, inflation and recession risks – identified by 17 percent of faculty as top threats – did not unfold as anticipated. While high inflation contributed to the cost-of-living crisis in 2023, a global recession never transpired in the way some economists warned. Reflecting this change in outlook, only 10 percent of faculty cited inflation and recession as top threats for 2024.
And on that note, here are the top four business and society issues identified by INSEAD faculty for 2024.
- Climate change
- Geopolitical crises
- Social instability
- Income and wealth inequality