How CEOs and other C-suite executives can respond to today’s issues

Global CEOs are feeling optimistic despite the challenges posed by an election year in the United States, India, and the European Parliament, as well as economic and global conflict stress. According to KPMG’s 2023 CEO Outlook report, released last week, a strong majority (73 percent) of global CEOs are confident about the economy over the next three years.

The twist: CEOs are currently optimistic about the future, but that optimism is mainly based on their perceptions of how other businesses are performing. However, the report highlights that CEOs’ confidence in their company’s growth prospects is at its lowest for three years. This apparent contradiction could significantly impact how businesses operate in the foreseeable future, and as a result, it will affect the issues that industry associations will have to address.

According to a recent survey, the biggest challenge companies face today is the uncertainty in global politics. Respondents have stated that this poses the greatest threat to growth in the next three years. As a result, more organizations will discuss how to respond to global events and what effective public statements will look like. An interesting finding is that 61 percent of CEOs said they would take a public stance on a politically or socially contentious issue despite concerns from the board.

When it comes to new technologies, particularly generative AI, CEOs are similarly optimistic but anxious. Most leaders (70 percent) are investing heavily in AI but still hold back due to concerns regarding the decision-making abilities of AI systems. The survey found that 55 percent of organizations are holding back on AI investments due to these concerns.

CEOs and other C-suite executives are facing uncertainty regarding return-to-office policies and Diversity, Equity, and Inclusion (DEI) in the workplace, according to a recent report. Despite initial efforts to address DEI, progress has slowed down as more systemic changes are required than simply making a few hires. 72 percent of CEOs believe that achieving diversity in the workplace requires changes at the senior leadership level.

Although these are significant challenges, CEOs and other C-suite executives are well-equipped to handle them. In the past year, more executives have developed guidelines around AI, enabling business leaders to benefit from its efficiencies while navigating its ethical and legal risks. Similarly, those implementing DEI programs have helped individual businesses build leadership pipelines that can bring about real change.

While C-suite executives cannot fix the climate crisis or broker peace agreements, it is encouraging that they recognize these issues as important and worth addressing. Having already navigated the worst of the COVID-19 pandemic, they are in a good position to tackle these challenges. As KPMG CEO Paul Knopp stated in the report, “Over the last four years, there have been many risks and uncertainties, and businesses have been very resilient. So, I think CEOs are feeling comfortable putting together playbooks to address almost any risk that’s out there today.” The same can be said for the associations that serve them.

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