Today’s CEO Insights: 1,127 words…5 minutes.
The Conference Board Consumer Confidence Index® for September found that US consumers expect inflation 12 months from now to stand at 6.8 percent. That’s down from 7.0 percent in August and a peak of 7.9 percent in June.
Why It Matters Overall, the Consumer Confidence Index® rose 4.4 points to 108.0 (1985=100) in September—its second consecutive monthly increase, after declines through much of the summer. Notably, concerns about inflation dissipated further in September—prompted largely by declining prices at the gas pump—and are now at their lowest level since the start of the year. This reduction in price expectations helped both the Present Situation Index and the Expectations Index improve in September from summer lows. Nevertheless, recession risks remain high. Looking ahead, the recent improvement in confidence may bode well for consumer spending in the final months of 2022, but inflation and interest-rate hikes remain strong headwinds to growth in the short term.
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A culture of engagement leads to improved business results—a must as businesses face a recession. But as many teams continue to work remotely or on a hybrid schedule, how can leaders tailor their behaviors to engage these virtual teams?
When working in a shared office, it’s easy to stop by a cubicle or gather as a team to provide feedback and ideas, but for remote environments, consider scheduling brainstorming and feedback sessions. Informal “watercooler” conversations also have a powerful impact on team dynamics. Consider creating opportunities to virtually replicate these interactions and foster collaboration.
Why It Matters Given the economic slowdown in the US after two years of continuous shocks, remote work remains attractive to many employees and is an important retention tool. But when working with employees who are remote, leaders must deliberately make time for informal interactions to maintain worker engagement and productivity, make decisions quickly, and communicate effectively.
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To date, Nominating and Governance (N&G) Committees are playing the lead role with respect to general ESG oversight. 755 companies in the Russell 3000 have assigned oversight of ESG to the N&G Committee, while only 85 have assigned it to the full board and 56 to a standalone ESG or Sustainability Committee. While N&G Committees may be well suited to some aspects of ESG oversight, boards should carefully consider whether it is the right committee to be responsible for the integration of ESG into the company’s business. The full board—or another committee—may be better suited to having direct responsibility for the integration of sustainability into the firm’s products, services, and operations.
Why It Matters As discussed at a recent ESG Center Working Group on the Roles of the Board in the Era of ESG and Stakeholder Capitalism, having a committee review a firm’s ESG strategy before it reaches the full board, and then be responsible for tracking progress, can have advantages. But if an N&G Committee is more naturally focused on the company’s reputation, it may not be inclined to dig as deeply into the business implications and opportunities of ESG.
Learn about ESG Center Working Groups »
Browse the brand new Board Committee ESG Responsibility Screening Tool, the latest addition to our ESG Advantage Platform, powered by ESGAUGE. The Screening Tool gives you access to a comprehensive database of US public company board committee charters that can be used to investigate where companies allocate specific ESG-related oversight responsibilities. Contact garen.alexander@conference-board.org for a demo.
Five Podcasts to Help You Demystify the Economic Downturn
What is the likelihood of a US and/or global recession? What do recent economic indicators from The Conference Board signal for the US economy? How can business leaders prepare for a recession, and find growth, even in a down cycle?
Tune into recent podcast episodes of CEO Perspectives, equipping you with the needed insights to prepare for the imminent economic recession:
Navigate the economic storm and make sense of mixed signals with the indispensable Trusted Insights for What’s Ahead™ from The Conference Board.
The challenges faced by corporations right now are very similar to those facing politicians: How do you focus your efforts as the situation darkens in Ukraine and inflation bites in America?
Why It Matters Essayist Ralph Waldo Emerson said, “Doing well is the result of doing good. That’s what capitalism is all about.” Corporate actions on ESG issues continue to be a focus for all stakeholders inside and outside of a company, from the intern to the CEO.
The situation this week is highly charged: Abroad, Russia calls up reserves, threatens annexation, and raises the threat of nuclear action. At home, hurricanes, continued inflation, and impending economic hardship signal the start of a harsh winter. In these two confluent contexts, companies must balance doing the good thing for those abroad with doing the right thing for those at home. Ideally, both should be addressed but, in reality, resources and bandwidth will come into play. There is no right answer on where to focus efforts, but companies must engage with stakeholders, listen to the voice of the employee, and consider what key governance topics to prioritize as the impact of Ukraine widens, to navigate the storms ahead.
Learn more about the Marketing & Communications Center »
In a series of conversations, three of America’s top CEOs discuss the extraordinary role that they and their companies played in helping combat COVID-19. From developing a vaccine in record time, to administering millions of vaccines, to the unprecedented public-private partnerships that made it possible, these individuals and companies epitomize Leadership in Challenging Times. They are recipients of the 2022 Distinguished Leadership Awards from the Committee for Economic Development, the public policy center of The Conference Board (CED).
“Nothing of what was accomplished would have been accomplished without partnerships. In our case, we had to partner with BioNTech…But, we also had to partner with the FDA, and the CDC…Without their active collaboration—without [our] active sensing of the way that they worked as well—we wouldn't be able to achieve what we achieved.”
— Albert Bourla, Chairman and CEO of Pfizer
“We were so motivated by the fact that...we could be a part of saving the world...it was energizing and it was inspirational for our teams—to be able to partner with the government and the private sector.”
— Heyward Donigan, President and CEO of Rite Aid
“I think the things where if I took lessons learned: those governments that defined what they were trying to accomplish, but not defined the solution, but actually just articulated what goal they were trying to solve…they actually unlocked a level of creativity that I think made a huge difference.”
— Marc Casper, Chairman, President, and CEO of Thermo Fisher Scientific
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