Approaching the Future 2024. Trends in Reputation and Intangible Asset Management.
Reputation and Corporate Communication: Key Intangibles in Business Management
The 9th edition of the report collects the 9 major trends in intangible asset management that are currently shaping the business agenda.
Corporate reputation and reputational risk occupy the top spot in the relevance ranking, and they have seen the greatest increase in resources and investment since the previous edition (+7.8 points).
Corporate communication is the trend being worked on the most by companies and the area where senior management invest more resources, demonstrating it strategic role as an essential aspect of the business model of the future
In a global climate of geopolitical instability, political and social polarisation, and increasing environmental and technological risks, uncertainty has become a widespread sentiment. In response to this scenario, companies are evolving towards more committed and responsible management and leadership models that build trust among their stakeholders, with corporate reputation and reputational risk being key elements. This is one of the main findings in the 9th edition of the report Approaching the Future (ATF) 2024: Trends in Reputation and Intangible Asset Management, produced by Corporate Excellence – Centre for Reputation Leadership in collaboration with CANVAS Sustainable Strategies and the Global Alliance for Public Relations and Communication Management as worldwide partner.
The international launch of this study, published under “the World PR and Communications Month” promoted by Global Alliance, analyses the impact of intangibles on the business agenda and strategic decision-making, and serves as a benchmark for understanding today’s organisational priorities, the issues to which companies are dedicating the most resources, and the challenges that they face. Based on a survey of nearly 2,200 professionals (40% of whom are senior executives) and the qualitative analysis of 11 leading experts, the report provides a forward-looking perspective on corporate strategy. Predictably, this year, artificial intelligence and its disruptive impact on business is included among the top nine trends for the first time.
Companies face disruptive changes in dynamic and highly competitive environments marked by various crises and risks that create significant reputational challenges. As a result, corporate reputation and reputational risk lead the ATF 2024 trends ranking: 60% of professionals consider it the most relevant intangible, and 70% state that its relevance has increased significantly over the past three years.
In fact, reputation is the area that has grown the most in investment and resources compared to the previous edition (+7.8 points), with more than half of consulted companies (54%) now actively managing it. Although 57% admit they are not measuring their reputation, they do use direct surveys and reputational rankings. Additionally, reputation is being reported and consolidated in management committees and boards of directors (68%), becoming integral to strategic business decision-making.
"The results of this year reflect that managing intangibles and promoting reputational leadership translates into business growth and corporate excellence. Companies that invest in strengthening their intangible assets will find a solid source of trust and support from all their stakeholders” says Ángel Alloza, CEO of Corporate Excellence - Centre for Reputation Leadership.
“The report clearly demonstrates that there is a cross-cutting relationship between all trends, highlighting the importance of intangible assets in the business agenda. It is important to see this year the role of reputation as the highest position of the ranking but how communication is again the area where companies are working at their most. For senior management, communication is seen as an essential tool to activate behaviours and amplify the corporate narrative strategy,” emphasises Justin Green, President and CEO at Global Alliance for Public Relations and Communication Management.
Responsible leadership, understood as a conscious management model guided by corporate purpose and a strong culture rooted in values and principles, is the second most relevant trend for companies, and the first for senior executives: 53.3% report dedicating resources to its development. The biggest challenge with these new leadership models will be actively listening to stakeholders and aligning their concerns with the company's purpose.
Sustainability: Consolidating Triple Impact Business
Sustainability ranks third, being the third most worked-on area by surveyed professionals (51.8%), and the main concern for 7 out of 10 large companies (70.3%). The primary focus for organisations making progress in sustainability is integrating it into their business strategy (which is also the biggest challenge), alongside adapting to new regulatory frameworks and identifying potential opportunities for sustainable corporate development.
This ATF 2024 edition includes a specific consultation on progress in the areas of triple impact and ESG (environmental, social, and governance). The result shows a balance among the three elements (35.4% of sustainability resources are allocated to social issues, 35% to environmental aspects, and 29.6% to governance), demonstrating that sustainability is increasingly understood and managed as a cross-functional business asset, rather than just an environmental issue as it was perceived traditionally.
Purpose and Communication at the Centre of Business Strategy
Corporate purpose has risen two positions since the previous edition, now firmly holding fourth spot in the relevance ranking. It is also the area that has grown the most in investment and resources since 2023 according to senior executives (+7.3 points), with over half of consulted organisations (51.7%) currently working on corporate purpose and prioritising its integration into the business as a strategic guide in decision-making processes.
Corporate communication is, for the second consecutive year, the most worked-on trend, receiving the most resources regardless of professional roles or company size. It plays a fundamental role in generating branded content and in mobilising efforts to effectively implement and activate the corporate purpose, both internally and externally in terms of stakeholders and society at large.
“Conscious leadership guided by corporate purpose and a strong culture rooted in values and principles reflects the evolving and significant role of companies as social and transformative agents in the environments in which they operate and how corporate communication plays a strategic role today can lead social transformation,” asserts Clara Fontán, Director of Intelligence & Operations at Corporate Excellence – Centre for Reputation Leadership and Director of the study.
Cybersecurity, Brand, New Work Models and AI
Digitalisation is the second most worked-on area for large companies, with 6 out of 10 investing efforts in it. There is a growing concern across all business segments for protecting cybersecurity and data privacy, with 41.3% allocating resources to this area. The brand, understood as the platform for stakeholder engagement, consolidates its relevance in this edition, with 48.5% of organisations prioritising it, and ranking among the top five areas most worked on by Spanish companies, particularly in terms of activating purpose through brand positioning.
There is an evolution in work models to adapt to the new social reality, essential for attracting and retaining talent. While implementing hybrid work models continues to be the aspect in which organisations invest the most efforts, 2024 also sees a significant increase in companies focusing on promoting collaboration and cross-functionality to break down silos and improve internal team functioning (38.4%), the biggest challenge that organisations are currently facing in this regard.
Finally, generative Artificial Intelligence (AI) enters the list of most relevant trends for companies for the first time: 28.5% of organisations are already making progress in this area, primarily aiming to integrate it into business processes (43%) and train employees in its use (35%).
Ensuring the ethical use of AI is one of the biggest challenges, although only 24.9% of companies are currently allocating resources to this end.
Watch the launch of the Approaching the future 2024 Report below:
To download the report, please, fill in the form below:
By signing up you agree to Global Alliance Privacy Policy and to receive Global Alliance Monthly Newsletter.