Corporate concerns over macroeconomic factors have surged by more than 50% in the last year, according to this year’s Oxford-GlobeScan Global Corporate Affairs Survey. The risks attached to Donald Trump’s return to the US presidency — particularly the new US administration’s approach to tariffs — have had a significant effect on corporate thinking.
Given the global economic turmoil we have seen, it can be no surprise that for the first time macroeconomic uncertainty is top of the list of concerns for US-based corporate affairs professionals.
Meanwhile, our survey shows that geopolitical risk has extended its lead as the biggest overall concern for global business. More than three quarters of surveyed executives told us that that was their primary concern — compared to less than half citing it as a major concern five years ago. Global crises including the war in Ukraine and conflict in the Middle East now dominate C-suite attention.
On the front line of geopolitics, it is the role of corporate affairs professionals to recognise and respond to stakeholder priorities, building both an early warning system for boards and a pathway to resolution of often competing priorities. These externally driven events have seen corporate affairs executives working in highly integrated positions within their organisations on shared solutions.
It is no great surprise that geopolitics remains central to corporate risk management. Even distant conflicts can ripple across supply chains and destabilise markets. Business leaders fear unpredictability and geopolitical chaos is, by nature, unpredictable.
Corporate affairs professionals are uniquely positioned to track and respond to these challenges. Often the most outward-facing leaders in a company, they are responsible for interpreting global trends, managing public narratives, and advising on emerging risks.
In recent years these professionals have had to guide their companies through tough decisions: exiting markets, navigating shifting alliances and managing stakeholder expectations amid international upheaval.
While political populism once dominated corporate concerns, it has now settled into the background. The survey suggests businesses have adapted. Though populism and cultural divides still influence policy, they are now seen as ongoing realities rather than new threats.
Climate change holds its position as the third most pressing concern globally, except in the Asia-Pacific region, where executives rank artificial intelligence (AI) and technological disruption higher. Elsewhere, AI is generally viewed as an opportunity, with leaders focusing on three main areas: driving innovation, enabling sustainable growth and boosting economic performance.
Attitudes towards environmental, social and governance (ESG) issues are now shifting under political pressure. Climate, diversity and governance remain central to the ESG agenda, but divisions are growing. In Europe and North America ESG is becoming increasingly politicised, with some companies scaling back diversity, equity and inclusion commitments in response to geopolitical push back.
In contrast, companies in the Global South, where political resistance is less pronounced, continue to express strong commitment to ESG goals. Overall, while ESG is becoming more contested, its global momentum has not vanished.
A growing challenge identified by corporate affairs professionals is increased regulatory pressure, particularly in Europe. Compliance demands are increasing, and a regulatory rift between the EU and US seems to be forming. The speed of these changes is straining even the largest firms, raising questions about how small and medium-sized enterprises will cope.
Amid all this global uncertainty companies are realigning around core values: trust, reputation and stakeholder engagement. Political polarisation and global instability are pushing businesses back towards human-centric strategies that prioritise transparency and communication.
• Younger is founder and director of the Oxford University Centre for Corporate Reputation at Saïd Business School.
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