Pulse on Modern CEO Agenda - September 2025

Amidthecomplexityandculturalshiftsof2025,C-Suite leadersarecommittingtoresponsiblebusinessandethical AIinitiativesalignedtomaterialissues,strategicbusiness prioritiesandculturalsensitivity.

Corporateleaders prioritizeperformance overperformative movesastheESG evolutionaccelerates

Executivesare balancingresponsibility andpracticalityasthey rampupAIadoption

Theroleofbusinessis shiftingtowardU.S. innovationandworkforce development–andESG languagewithit

Culturaladaptationisa strategicimperativefor long-termvaluecreation

TheWeberShandwickCollective’sglobalc-suite advisoryunit—WeberAdvisory—partneredwith KRCResearchtosurveyglobalC-Suiteleaderson howtheyarebalancingbusinessrealities, stakeholderexpectationsandpoliticalculture pressuresin2025.

Thefindingsrevealdistinctmindsetsofleadersasthey evolveresponsiblebusinesspracticesandresolvecore tensionsthatdefinethiseraofglobaldisruptionand technologicalrevolution.

WeberAdvisoryaskedC-Suiteleaderstolookbackontheirapproachto Environment,SocialandGovernance(ESG)andDiversity,Equity& Inclusion(DEI)initiativesin2020through2024andfoundthat executivesareofthreemindsetsaboutresponsiblebusinesstoday:

45% 48%

Nearlyhalf(48%)are Enthusiastswhoembrace theircorporation’ssocial andenvironmental initiativesascoreto businessstrategy,and importanttocontinue.

Justunderhalf(45%)are Pragmatistswhoarereflecting ontheintentoftheir corporation’ssocialand environmentalinitiativesto ensuretheyarebackedby strategicaction,and/ornotover correctionstoculturalpressures ofthemoment.

Halfofleaders(49%)

%

Aminority(7%)are Skepticswhofindtheir corporation’ssocialand environmentalinitiatives tobetoofar-reaching andgoingbeyondwhata companyshouldaddress.

reportthattheircompaniesareevolvingtheircorporate socialandenvironmentalinitiativestorespondtothe2025 businesscontextbybetteraligningwiththeirstatedvalues andbusinesspriorities.Therecalibrationcanbecharacterized asarefinementoftheirapproachtobemoreauthenticand accountable,sothateffortsalignwithbusinessobjectives and/ortomakesubstantivechangesinresponsetomaterial businessissuesandstakeholderexpectations.

Corporateleadershavebeenonaresponsiblebusinessjourneyforatleast twodecades.It’shelpfultoevaluatethecurrentmomentofrecalibration withintheevolutionofcorporatepurposeasexplainedinthechartbelow.

Phase

2004–2010: ESGemergesasa corporaterisk framework

2011–2018: ConceptofShared Valuepopularized

Description

TheUnitedNationsGlobalCompactcoined thetermESGtocaptureprivatesector alignmentwithandimpactonsustainable developmentaims

MichaelPorterandMarkKramerpublisheda seminalHarvardBusinessReviewarticle thatpushedtheideaoftriplebottomline managementintothemainstream

CorporateBehavior

Companiesincreasinglyadoptvoluntary ESGreportingandmoretransparencywith stakeholders,especiallyinthewakeofthe GlobalFinancialCrisis

Companiestakeamoreholisticviewof sustainabilityintegrationacrossthesupply chain,ESGframeworkstomeasureimpact expandandtheprivatesectorbecomesa loudervoiceinmultilateraldiplomacysuch asintheParisClimateAgreement negotiations

2019–2023: Purposeofa corporation reframedas Stakeholder Capitalism

2024–2025: Politicizationand recalibrationof ESGandDEI

TheBusinessRoundtableandtheWorld EconomicForumredefinethepurposeofa corporationasthecreationoflong-term valueforallstakeholders,notjust shareholders

Anti-ESGandDEIvoicesgainmomentum leadinguptothe2024U.S.electionandthe Trump2.0administrationderegulatesESG andDEIpolicyandnorms

Companiesadoptstakeholdercapitalism principlesbroadly,especiallyintheir commitmentstoclimate,DEIandpublic healthinthewakeoftheCOVID-19 pandemicandaccelerationofsocialjustice movementsin2020

CompaniesarecaughtupintheESGand DEIculturewars,balancingpoliticalrealities, businessimperativesandstakeholder expectations

In2025,C-Suiterespondentsratedvariousreasonsfor evolvingtheirresponsiblebusinessapproach,amongthemisa responsetothepoliticizedmoment,butespeciallyafocuson businessfundamentalsandlong-termperformance.

Q:Howisyourcompanyevolvingits approachtocorporatesocialand environmentalinitiativestorespondto the2025businesscontext?Please selectupto3.

priorities

Emphasizingsubstantivechangeoversymbolic gestures

Buildingsystemstobetterunderstandabroader rangeofstakeholderexpectations

Assessingourportfolioandevolvingor sunsettingmisalignedprograms

Underlyingtheevolutionof responsiblebusinesstodayare threecoretensionsthatcomplicate leadershipdecision-makinginan uncertain,volatileanddisruptive business,societalandgeopolitical environment.

Protectingshort-termreputation againstlong-termvaluecreation

Morethanhalf(52%)ofC-Suite leaderssaytheircompanies prioritizelong-termvalue creationthatbenefits shareholdersthroughboth strategicandresponsible businesspractices.Theprimary driversoffuturegovernance andresponsiblebusiness initiativesareexecutive leadershipvision(41%),capital marketsdemands(36%)and

customerexpectationsand marketingpositioning(36%).

TheC-Suiteexecutives surveyedrankbusiness fundamentalsascriticalto long-termvaluecreation, whereESGandDEIfactorsare partofthehowcompanies drivecompetitiveadvantage throughinnovation,efficiency, workforcedevelopmentand supplychainresilience.

Leaderslargelybelievethattheircompanywould:

Consideremerging culturalmovements animportantstrategic lensforassessingtheir organization’ssocial andenvironmental initiatives(80%)

Reassesssocialand environmental initiativesinresponse toaspecificflashpoint inculture(78%)

Importantly,C-Suiteleaders alsoacknowledgean increasingdemandtopivotin responsetothecurrentcultural moment.Morethaneight-in-ten (81%)leadersconsidercultural adaptationacritical componentofreputation, brandingandstakeholder management.

Reversecourseifa strategicinitiative cameupagainstswift andvocalopposition amongstakeholders (66%)

BalancingAmericaFirstdynamicsand broadstakeholderexpectations

WhileC-Suiteleadersreportthat responsiblebusinessrefinements areaboutfocusingonmissioncriticalprioritiesandstrategic opportunitiestodrivesustainable valuecreation,thereisan undercurrentofrealignmentto meetthepoliticalculture momentdefinedbytheAmerica Firstethos.

Organizationsareadjustingtheir responsiblebusiness investmentsandthelanguage usedtodescribethem.Only aboutaquarter(28%)of companieshavereduced

fundingforESGandDEI initiatives,citinglimitedshortterm(36%)orlong-term(34%) stakeholdervalueandwanting competitiveadvantagein securinggovernmentcontracts (31%).Amajorityofcompanies haveincreasedinvestmentsin climatechangemitigation(79%), environmentalsustainability (75%),healthequity(75%)and DEI(72%)programs.

Despiteatrendofmore investmentinESGandDEI, companiesarebeingcareful abouttheirmessaging,withclear

Q:SinceJanuary2025,hasyourcompany's publicmessagingandcommunicationsshifted towardemphasizinganyofthefollowing themes?Selectallthatapply.

pivotstotermsrelatedto competitivenessandU.S.job creation–evenforcompanies withheadquartersoutsidethe U.S.SinceJanuary2025, messagingthemeshaveshifted towardinnovationleadership (55%)andAmericanworkforce development(54%)andjob creation(44%),drivenby operationalbenefitssuchas supplychainresilienceandcost reduction(36%)andpolitical, businessorsocietal considerations(21%).

WhenitcomestoESGandDEIspecificvocabulary,mostestablishedtermsrelatedtocorporateresponsibilityand sustainabilityarestillinuse–andhaveevenbecomemorepopular–apartfromlanguagerelatedtoLGBTQ+ inclusionandadvocacy.Yet,moreneutraltermssuchasresponsiblebusiness,belonging,opportunityandresilience haveexpandedcommonplaceESGterminology.Anditmaybethatcompaniesuseawiderrangeoftermsinternally butadaptexternalcommunicationstoaligntomorewidelyacceptedtermsintoday’sculture.

RealizingAIupsidewhilemanaging theethicaldownside

AttitudestowardAI-related socialresponsibilitiesshowthat amajority(56%)ofbusiness leadersthinkcorporations shouldprioritizeethicalAI developmentanddeployment withintheirresponsible businessstrategies.

Withsomevariationacross industries,C-Suiteleaders largelyfeelthatcorporations shouldbalanceAI-driven productivitygainswith workforceimpactsbyinvesting AIsavingsinnewjobcreation andbusinessexpansion(68%)

andimplementingAIwith concurrentworkforceretraining programs(65%).

Q:Howshouldcorporations balanceAI-drivenproductivity gainswithworkforceimpacts? Selectallthatapply.

MaximizeAIadoptionforcompetitive advantage,marketforceswillhandle workforcetransitions

Partnerwithgovernmentsand educationalinstitutionsonworkforce development

ThefindingsinthisPulseontheModernCEOAgendasurveyreinforcethatC-Suite leadersarenavigatingrapidshiftsattheintersectionofbusinessandculture. Responsiblebusinessstrategies,includingthenewethicalAIfrontier,arekeytohow companiesbalancecompetingpressuresandstakeholdertensionstobuildandprotect reputationandcompetitiveadvantagefortodayandanuncertaintomorrow.

ResponsebyLeadersinSpecificIndustries

Weber Advisory

TheWeberShandwickCollective’sglobalc-suiteadvisoryunit–WeberAdvisory–isa moderncorporateaffairscapabilitybuiltforeveryfacetoftheCEOandcorporate enterpriseagenda.Inanerawhereunderstandingculturalnuances,politicaltrendsand societalshiftsisessentialfornavigatingthebusinesslandscape,WeberAdvisoryoffersa comprehensivesuiteofservicesandtechnologybuilttoempoweragilecorporateaffairs executivestocreateandprotectstakeholdervalueinhigh-stakessituations,including geopoliticalissues,mergersandacquisitions,stakeholderactivism,majorcrises,leadership transitions,andbusinesstransformations.