The survey, conducted by the Global Risk Advisory Council and involving 117 participants from 17 countries and 58 industries, has sounded an alarm for CEOs and brand managers navigating an increasingly polarized world. Among those surveyed were former government officials, corporate executives, and public affairs experts.
According to the results, nearly one-third of respondents identified associating with polarizing business figures—particularly those tied to divisive political administrations—as a leading risk. These affiliations were said to create an “unavoidable spotlight” that often draws scrutiny not just from the media, but also from regulators, employees, and the public.
Artificial intelligence, however, emerged as an even greater reputational hazard. Leaders warned that AI, when misused or poorly managed, can catalyze irreversible public backlash. Concerns were especially high around deepfakes, algorithmic bias, and the spread of misinformation—issues that, if not addressed with clear ethical guidelines, could erode trust and result in long-term damage to a brand’s integrity.
One expert described the current climate as a “turning point” where companies must treat AI governance as seriously as financial audits or cybersecurity. Failing to do so risks not only customer trust but also regulatory intervention and legal consequences.
The third-highest reputational risk identified was the rollback of diversity, equity, and inclusion (DEI) initiatives. As some governments and institutions aggressively cut funding or remove such programs, companies following suit may find themselves at odds with modern workforce expectations and social values. Participants in the survey emphasized that walking back DEI commitments can alienate both employees and consumers, particularly younger generations who prioritize inclusive workplace environments.
Other notable risks highlighted in the survey include engaging in anticompetitive practices and becoming embroiled in defamation cases—both of which can quickly spiral into public relations crises and legal entanglements.
“The data makes it clear—leaders cannot afford to treat these issues as peripheral,” noted one council member. “What may have once been viewed as political noise is now central to how stakeholders perceive value and trust.”
The council plans to release this reputation risk index quarterly to help organizations stay ahead of rapidly shifting public sentiment. As global markets remain volatile and political alliances continue to evolve, companies are being urged to move cautiously, communicate transparently, and ensure that ethical foresight guides their strategic decisions.
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