 Jared Nelson |
In 2025, multinational companies will confront an increasingly complex landscape of societal, political and geopolitical challenges. A hyper-polarized U.S. populace, escalating regional tensions and the rapid rise of AI are among the forces creating no-win situations that pit values against profit, forcing leaders to prioritize competing business objectives and stakeholders.
With an organization-wide perspective, the modern chief communications officer is uniquely positioned to align values and strategy, making them indispensable in mitigating today’s heightened risks. Beyond addressing reputational challenges, CCOs are increasingly tackling broader business problems. As we begin 2025, here’s our perspective on the critical issues CCOs should help leadership teams proactively address.
Continued momentum against DEI
Walmart, Lowe’s, Molson Coors, Harley-Davidson, John Deere and Ford are just a few U.S. companies publicly scaling back diversity, equity and inclusion commitments. While these companies made their decisions in the face of pressure from conservative activists, many organizations that haven’t yet been targeted are quietly considering whether current commitments make them vulnerable to criticism. Meanwhile, left-leaning stakeholders—and corporate employees, in particular—are sensitized to any perceived retreat and empowered to call out corporate leaders for failing to live up to stated values.
Globally, DEI dynamics differ, with some regions tightening quotas and reporting mandates while others face cultural or political resistance. This disparity adds complexity to multinational DEI strategies.
| This article is featured in O'Dwyer's Jan. '25 Special Issue on Crisis Communications |
Beyond simply scenario planning for pressure from Robby Starbuck, companies should audit their DEI commitments, prioritizing those aligned with their mission and values while weighing the risks of maintaining or ending them. Clear communication strategies also need to be developed for DEI, covering the annual ESG or Social Impact reports, publicly available information and engagement with employee resource groups. Regardless of adjustments to commitments, embedding DEI in corporate narratives, amplifying diverse voices and maintaining an inclusive culture remain critical to reputational resilience.
Heightened geopolitical tensions
Dubbed “the year of the election,” 2024 saw over half of the world’s population voting for their head of state. While elections brought some certainty to key markets, they also spotlighted rising geopolitical hotspots driven by autocratic aggression and nationalism. Strategic economic competition and escalating trade wars add further complexity, pressuring executives to reconsider market footprints and supply chain dependencies.
Many companies were caught off-guard by the Russia-Ukraine war and the October 7th terror attack in the Middle East. Misinformation and missteps sparked boycotts of major brands, underscoring the need for proactive planning. Companies can’t afford to react slowly next time. With risks of flashpoints like a potential Chinese invasion of Taiwan, organizations must scenario-plan communications strategies to own narratives and counter misinformation. Key components of these strategies should also include high-touch government relations in relevant markets and close coordination with physical security teams to keep employees safe.
Looming trade wars
President Donald Trump’s vows of sweeping tariffs on Canada, Mexico and China could trigger economic shocks and raise consumer prices. Whether used as a bargaining tactic or policy directive, companies must prepare for scenarios ranging from status quo to full trade wars with key economic partners.
Proactive steps such as stockpiling inventory and recalibrating supply chains are already underway. However, companies also face tough decisions about passing tariff costs onto consumers—as some well-known brands have suggested they would—risking reputational damage, especially given the record profits many are experiencing. Businesses should engage policymakers to influence trade policies, conduct consumer surveys to gauge reactions and closely monitor competitors’ strategies.
The AI arms race
Across industries, companies face mounting pressure to leverage AI and machine learning to innovate, grow revenues and boost efficiency. This rush has led some to release half-baked products or overlook unintended consequences while others risk falling behind competitors by failing to adopt AI effectively.
Whether AI is central to growth or limited to internal use, companies must articulate how they leverage technology to benefit employees, customers and investors. Companies should also scenario plan for backlash from direct or indirect consequences of their AI use, including concerns about layoffs or changes to roles, cybersecurity and privacy and algorithmic discrimination or bias.
More sophisticated, costly cyber threats
Despite years of prioritization, cybersecurity remains a moving target. Last year, two-thirds of global organizations were impacted by ransomware, with the average cost of a successful breach nearing $5 million.
As cybercriminals grow more sophisticated, so must defense strategies. Resilience against software supply chain attacks, like those that hit SolarWinds and MoveIT, is critical. Companies must also deploy AI technologies to combat deepfakes and flag these threats. Staying ahead of cybersecurity regulations, which are tightening globally, will also be essential for compliance.
In the face of these diverse challenges, CCOs have an opportunity to further redefine their role as strategic partners who drive alignment between organizational values and actions. By taking a proactive stance on risks, collaborating across leadership and shaping narratives that resonate with stakeholders, CCOs can help their companies navigate uncertainty, protect their reputations and seize opportunities in an increasingly complex world.
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Jared Nelson, Associate Partner at DGA Group, specializes in crisis management and geopolitical risk. He has led high-stakes responses for companies of all sizes facing data breaches, product recalls, executive transitions, misconduct allegations and active shooter events.
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