Global Boards Show Progress in Sustainability, But AI and Geopolitical Risks Loom Large, Reports Heidrick & Struggles
A new global survey by Heidrick & Struggles, BCG, and INSEAD reveals mixed progress in board governance across key challenges. While 77% of boards acknowledge their responsibility to address sustainability concerns, only 36% feel prepared for AI disruption, and 37% believe they have adequate geopolitical risk strategies.
The study highlights significant leadership tensions, with 29% of directors lacking faith in their CEO's ability to navigate uncertainty, while 26% of CEOs doubt their board's effectiveness. Half of the respondents express uncertainty about their company's readiness to identify new threats and opportunities related to sustainability, generative AI, and geopolitics. Despite 54% believing business objectives should remain primary, boards are increasingly recognizing the need to balance traditional governance with emerging challenges.
Un nuovo sondaggio globale condotto da Heidrick & Struggles, BCG e INSEAD rivela progressi contrastanti nella governance del consiglio di amministrazione di fronte a sfide chiave. Mentre il 77% dei consigli riconosce la propria responsabilità nell'affrontare le problematiche di sostenibilità, solo il 36% si sente pronto per le interruzioni dovute all'IA e il 37% crede di avere strategie adeguate per i rischi geopolitici.
Lo studio evidenzia tensioni significative nella leadership, con il 29% dei direttori che manca di fiducia nella capacità del proprio CEO di affrontare l'incertezza, mentre il 26% dei CEO dubita dell'efficacia del proprio consiglio. La metà dei rispondenti esprime incertezza riguardo alla prontezza della propria azienda nell'identificare nuove minacce e opportunità legate alla sostenibilità, all'IA generativa e alla geopolitica. Nonostante il 54% creda che gli obiettivi aziendali debbano rimanere primari, i consigli riconoscono sempre più la necessità di bilanciare la governance tradizionale con le sfide emergenti.
Una nueva encuesta global realizada por Heidrick & Struggles, BCG e INSEAD revela avances mixtos en la gobernanza de las juntas en relación con desafíos clave. Mientras que el 77% de las juntas reconoce su responsabilidad para abordar las preocupaciones de sostenibilidad, solo el 36% se siente preparado para la interrupción de la IA, y el 37% cree que tiene estrategias adecuadas para los riesgos geopolíticos.
El estudio resalta tensiones significativas en el liderazgo, con el 29% de los directores que carecen de fe en la capacidad de su CEO para navegar la incertidumbre, mientras que el 26% de los CEOs duda de la efectividad de su junta. La mitad de los encuestados expresa incertidumbre sobre la preparación de su empresa para identificar nuevas amenazas y oportunidades relacionadas con la sostenibilidad, la IA generativa y la geopolítica. A pesar de que el 54% cree que los objetivos empresariales deben permanecer como prioridad, las juntas están reconociendo cada vez más la necesidad de equilibrar la gobernanza tradicional con los desafíos emergentes.
Heidrick & Struggles, BCG 및 INSEAD이 실시한 새로운 글로벌 설문조사는 주요 도전 과제를 통한 이사회 거버넌스의 혼합된 진행 상황을 드러냅니다. 77%의 이사회가 지속 가능성 문제를 해결할 책임이 있다고 인정하는 반면, 단 36%만이 AI의 혼란에 준비되었다고 느끼고, 37%는 충분한 지정학적 위험 전략이 있다고 믿고 있습니다.
이번 연구는 리더십의 중요한 긴장을 강조하고 있으며, 29%의 이사가 CEO가 불확실성을 극복할 수 있는 능력에 대해 믿음을 잃고 있고, 26%의 CEO가 자신의 이사회의 효과성에 의문을 품고 있습니다. 응답자의 절반은 자신의 회사가 지속 가능성, 생성적 AI 및 지정학과 관련된 새로운 위협과 기회를 식별할 준비가 되어 있는지에 대한 불확실성을 표현합니다. 54%가 비즈니스 목표가 우선해야 한다고 믿음에도 불구하고, 이사회는 전통적인 거버넌스를 새로운 도전 과제와 균형을 맞추어야 할 필요성을 점점 더 인식하고 있습니다.
Une nouvelle enquête mondiale réalisée par Heidrick & Struggles, BCG et INSEAD révèle des progrès mitigés en matière de gouvernance des conseils d'administration face à des défis clés. Alors que 77% des conseils reconnaissent leur responsabilité d'aborder les préoccupations en matière de durabilité, seulement 36% se sentent préparés à la disruption de l'IA, et 37% croient disposer de stratégies adéquates pour les risques géopolitiques.
L'étude met en lumière d'importentes tensions de leadership, avec 29% des directeurs manquant de confiance dans la capacité de leur PDG à naviguer dans l'incertitude, tandis que 26% des PDG doutent de l'efficacité de leur conseil. La moitié des répondants exprime une incertitude quant à la préparation de leur entreprise à identifier de nouvelles menaces et opportunités liées à la durabilité, à l'IA générative et à la géopolitique. Malgré que 54% croient que les objectifs d'entreprise doivent rester prioritaires, les conseils reconnaissent de plus en plus la nécessité de concilier la gouvernance traditionnelle avec les défis émergents.
Eine neue globale Umfrage von Heidrick & Struggles, BCG und INSEAD zeigt gemischte Fortschritte in der Governance von Aufsichtsräten in Bezug auf zentrale Herausforderungen. Während 77% der Aufsichtsräte ihre Verantwortung zur Bewältigung von Nachhaltigkeitsfragen anerkennen, fühlt sich nur 36% auf die Disruption durch KI vorbereitet, und 37% glauben, über angemessene Strategien für geopolitische Risiken zu verfügen.
Die Studie hebt erhebliche Spannungen in der Führung hervor, wobei 29% der Direktoren an der Fähigkeit ihres CEO zweifeln, mit Unsicherheiten umzugehen, während 26% der CEOs die Effektivität ihres Aufsichtsrats bezweifeln. Die Hälfte der Befragten äußert Unsicherheit, ob ihr Unternehmen bereit ist, neue Bedrohungen und Chancen im Zusammenhang mit Nachhaltigkeit, generativer KI und Geopolitik zu identifizieren. Trotz der Tatsache, dass 54% der Befragten der Meinung sind, dass Geschäftsziele an erster Stelle stehen sollten, erkennen die Aufsichtsräte zunehmend die Notwendigkeit, traditionelle Governance mit neuen Herausforderungen in Einklang zu bringen.
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New global survey by Heidrick & Struggles, BCG, and INSEAD, reveals growing confidence in sustainability governance, but boards and CEOs still lack confidence in each other's leadership
Additionally, the report shows evidence of simmering discord among company leadership on how best to enhance competitiveness amid the challenges they face.
Key Findings from the Boardroom
77% of boards believe their company has a responsibility to address sustainability concerns36% feel prepared to leverage the disruptive potential of AI37% believe their company has a sufficient strategy around geopolitical risk29% of directors do not have faith in their CEO to navigate uncertainty26% of CEOs do not have faith in their board's effectiveness- Half of respondents are not confident their company is equipped to identify new threats and opportunities related to sustainability, generative AI and geopolitics
The report reveals that
These findings highlight an urgent need for greater balance between traditional governance with forward-looking strategies and increased investment in board competency. Despite lower levels of confidence for the prevailing risks and emerging technologies of our time, it is encouraging to note that more than
Lack of Confidence Amid Growing Complexity
In a concerning indication of division within the boardroom, the new report reveals that
The report also finds that roughly half of directors are not confident their company is equipped to identify new threats and opportunities related to sustainability, generative AI and geopolitics, nor are they able translate them into a competitive advantage. As global business landscapes continue to shift, the ability of boards to stay cohesive, align with leadership, and adapt to new challenges with innovative corporate strategy will be more critical than ever. Effective governance that embraces both foresight and resilience will be key in turning these disruptions into opportunities, allowing businesses not only to survive but to thrive in an increasingly volatile world.
Commenting on the findings, Jeremy Hanson, Partner with Heidrick & Struggles and Co-author of the report, commented: "While it is encouraging that boards are stepping up on sustainability, this year's survey reveals tensions between directors and management regarding each other's capacity to navigate disruption. With so much at stake—and an increasing complexity to unpack—alignment between board directors and management isn't just a best practice; it's essential for addressing both today's challenges and those of the future. Importantly, alignment does not mean boards should shy away from constructive debate with management. In fact, fostering open, even difficult, conversations is crucial for boards to reach resilient, well-rounded decisions in today's demanding environment."
Sonia Tatar, Executive Director of INSEAD Corporate Governance Centre, said, "Boards today can benefit from moving from being reactive to proactive. Beyond understanding disruptions, they can focus on looking ahead—anticipating future shocks and potential risks and finding ways to capitalize on the emerging trends to leverage opportunities. By translating insights that inform decision-making into strategic actions, they will be better positioned to guide companies in becoming more resilient and navigating change effectively."
Also commenting on the report, David Young, Managing Director and Senior Partner of BCG added: "Boards are facing new and increasingly complex challenges, amid geopolitical uncertainty, rapid advances in technology, and continued concerns over the impact of climate change. But boards have made notable progress in tackling sustainability--and now there is opportunity for them to learn from these efforts as they engage in deep conversations with executive leadership to confront this expanding agenda."
Media Inquiries:
Heidrick & Struggles: heidrick@cw8-communications.com
BCG: Gregoire.Eric@bcg.com
INSEAD: news@insead.edu
About Heidrick & Struggles:
Heidrick & Struggles (Nasdaq: HSII) is a premier provider of global leadership advisory and on-demand talent solutions, serving the senior-level talent and consulting needs of the world's top organizations. In our role as trusted leadership advisors, we partner with our clients to develop future-ready leaders and organizations, bringing together our services and offerings in executive search, diversity and inclusion, leadership assessment and development, organization and team acceleration, culture shaping and on-demand, independent talent solutions. Heidrick & Struggles pioneered the profession of executive search more than 70 years ago. Today, the firm provides integrated talent and human capital solutions to help our clients change the world, one leadership team at a time. For more, please visit www.heidrick.com
About BCG:
Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.
Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.
About INSEAD:
As one of the world's leading and largest graduate business schools, INSEAD brings together people, cultures, and ideas to develop responsible leaders who transform business and society. Its research, teaching and partnerships reflect this global perspective and cultural diversity.
With locations in
INSEAD continues to conduct innovative research and innovate across all programmes. The organisation provides business leaders with the knowledge and awareness to operate anywhere. Its core values drive academic excellence and serve the global community as The Business School for the World. For more information, please visit www.insead.edu.
About INSEAD Corporate Governance Centre:
The INSEAD Corporate Governance Centre (ICGC) has been actively engaged in making a distinctive contribution to the knowledge and practice of corporate governance globally. Its vision is to be the leading center for research, innovation, and impact in corporate governance. Through its educational portfolio and advocacy, the ICGC seeks to build greater trust within the public and stakeholder communities, so that businesses are a powerful force for improvement, not only of economic markets but also for the global societal environment. For more, visit www.insead.edu/centres/corporate-governance.
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