In a business landscape increasingly defined by uncertainty, CEOs are doubling down on diversity, equity, inclusion (DEI) and innovation as a strategic priority, new research has revealed.
According to the latest Fortune/Deloitte CEO Survey, 40% of CEOs have embedded DEI into their organisational goals, recognising its crucial role in driving long-term success. This focus comes at a time when nearly three-quarters (73%) of CEOs remain optimistic or very optimistic about their companies’ performance over the next 12 months, despite significant external challenges.
The survey underscores a growing consensus among business leaders: DEI is not just a social responsibility but a strategic imperative. CEOs are increasingly aware that diverse and inclusive workplaces lead to better decision-making, enhanced innovation, and stronger financial performance. However, the complexities of measuring DEI outcomes remain a significant hurdle. In response, many CEOs are setting clearer metrics and regularly updating their boards on DEI progress, ensuring accountability at the highest levels, noted the research.
LEVERAGING AI FOR INCLUSION & INNOVATION
Generative AI (GenAI) is also emerging as a powerful tool not just for efficiency, but for fostering innovation and inclusivity. The survey revealed that 43% of CEOs have implemented GenAI within their organisations to drive innovation, with many exploring how the technology can also support DEI initiatives. By leveraging AI, CEOs are finding new ways to ensure that their companies remain competitive while also advancing their DEI goals.
Even as CEOs focus on DEI, they are also grappling with a range of external disruptions. Geopolitical instability continues to top the list of concerns, with 60% of CEOs citing it as their primary challenge. Despite this, more than half (51%) of CEOs express confidence in their organisation’s ability to navigate these geopolitical risks.
Inflation is another pressing issue, with 43% of CEOs confident in their strategies to manage its impact. This confidence reflects a proactive approach to economic volatility, as leaders seek to mitigate the effects of rising costs on their operations and bottom lines.
POLITICAL & ECONOMIC CHALLENGES
As the 2024 US election approaches, CEOs are preparing for potential shifts in the regulatory and economic landscape. Nearly half of those surveyed anticipate significant changes in taxes, regulation, and international trade, depending on the election’s outcome. In this uncertain environment, risk management and strategic planning have become more critical than ever, with CEOs taking steps to safeguard their businesses against political and economic volatility.
Jason Girzadas, CEO of Deloitte US, highlighted the dual focus on navigating external challenges and supporting internal resilience: “CEO concerns about geopolitics, inflation, and ideological polarisation intensify in the face of continued uncertainty, prompting robust scenario planning. Leaders are not only strategising to navigate these complexities but are also committed to supporting their peoples’ resilience. Additionally, it is encouraging to see the proactive adoption and personal exploration of Generative AI by CEOs to drive innovation and enhance their daily work.”
Diane Brady, Executive Editorial Director of Fortune Live Media, emphasised the intersection of DEI and innovation: “CEOs, regardless of where they are on the political spectrum, are clearly concerned about volatility in the regulatory environment and the impact it’s having on business. They see the promise of AI and how it could help their companies be leaders in this next wave of innovation. But they also need policymakers to create an environment for their businesses to thrive.”
DEI & INNOVATION FOCUS
The Fortune/Deloitte CEO Survey reveals that in the face of mounting challenges, CEOs are not retreating but are instead doubling down on key priorities like DEI and innovation. By embedding DEI into their strategic goals and harnessing the power of AI, these leaders are positioning their organisations to thrive in an increasingly complex world.
As they prepare for the potential disruptions of the year ahead, CEOs are demonstrating a commitment to inclusivity and innovation that could define the next wave of business success.
Download the full survey here.
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