CEOs not so gung-ho about globalisation

PRICEWATERHOUSECOOPERS (PWC) said that while positive on the benefits of globalisation in building the free movement of capital, goods and people, CEOs question whether globalisation has done anything to close the gap between rich and poor or mitigate the issue of climate change.

“This is in contrast to the first PwC CEO survey in 1998, when the executives were positive about the drivers of globalisation,” the company said.

In the survey, PwC found that 58 per cent of business leaders think it has become harder to balance globalisation with rising trends in protectionism.

For the past 20 years, PwC said CEOs have been largely positive about the contribution of globalisation to the free movement of capital, goods and people. However, this year’s survey respondents are sceptical that it has mitigated climate change or helped close the gap between rich and poor.

The firm said that is similar to the public’s view on these issues in a separate consumer poll commissioned by PwC of more than 5,000 people in 22 countries.

Almost two thirds, 64 per cent, of the public believe globalisation has helped create full and meaningful employment, contrasting with over three quarters of CEOs, 76 per cent.

PwC said CEOs tell it that technology is now inseparable from business reputation, skills and recruitment, competition and growth. Almost a quarter, 23 per cent, believes technology will completely reshape competition in their industry over the next five years.

“After several high-profile technology and security issues for big companies, CEOs unsurprisingly identify cybersecurity, data privacy breaches and IT disruptions as the top three technology threats to stakeholder trust,” said PwC.