• Companies say that transformations in technology (68%) and sustainability strategies (62%) are the most likely.
• ESG criteria mark the C-suite agenda: three-quarters of respondents plan to increase investment in sustainability initiatives and the majority have made public commitments on a range of ESG topics.
• Research suggests, however, a gap between intention and action.

According to the Mazars C-suite Barometer, C-suite professionals are ready to respond to future trends and transformations. But are they ready to move from intentions to actions?

March 24, 2021: Mazars, the international auditing, tax and consulting firm, launches its C-suite Barometer 2021: "Time for action". Conducted in the fourth quarter of 2021, the Mazars C-suite Barometer consulted more than 1,000 executives from 39 countries around the world to understand what opportunities and challenges they face.

Mark Kennedy, Partner and member of the Group Executive Board at Mazars, explains: "We conducted our annual barometer to listen and understand the opportunities and challenges our clients are facing. One of the most significant findings of the study was the sense of confidence and resilience shown: with the ongoing impact of the pandemic, rising inflation and the terrible attack on Ukraine, these are qualities that will be tested again this year."

Technological and sustainability transformations

The survey concluded that leaders expect their businesses to undergo transformations, with those related to technology and sustainability being the most likely: 68% expect to undergo a technological transformation and 62% expect a transformation in their sustainability strategy in the next three to five years.

Sense of confidence and resilience

Companies are confident that they can respond to trends: 94% believe in their response to trends in technology/innovation; 91% to expectations of governance, ethics and social responsibility; and 90% to new or more complex regulatory requirements. The majority (88%) believe they have the resilience to deal with a crisis. Faced with increasing cybersecurity risks, the majority (68%) are confident that their data is fully protected.

ESG on the C-suite agenda: time to move from intention to practice

Companies are hoping to transform their sustainability strategies, increase investment in this type of initiative and are making public commitments on a range of ESG topics. ESG criteria are clearly the focus of C-suite professionals.

Chris Fuggle, Co-Head of Sustainability at Mazars, comments: "The big challenge is to turn intentions and commitments into achievable strategies. It is essential to create ESG knowledge at the highest levels, incorporate it into the business strategy and have a daily follow-up plan. This is not a quick fix, but the important thing is to start moving in this direction."

From strategy to action

Considering the expected transformations, the confidence to respond to trends, the planned investments and the commitments made to ESG criteria, there seems to be a gap between intention and action.

Having the right programs in place and the right leaders with the right skills will be crucial. The research identified the three most important skills that leaders will need for the next three to five years: strategic vision and planning; analytical thinking and problem solving; innovation and creativity.

With a focus on ESG criteria and high confidence to respond to expectations of governance, ethics and social responsibility, it is perhaps surprising that "sense of purpose for the future of the organization", "ethics to lead and lead responsibly" and "emotional intelligence" are not at the top of the list.

Kennedy comments: "Competition for talent is fierce, especially with the increase in ESG criteria and people's expectations of how companies should behave. Organizations that demonstrate their values and vision, and that manage to develop, recruit and empower their people with the right skills, have the opportunity to build a competitive advantage."

The research shows that companies feel prepared and confident to respond to future trends and transformations. But in order to deliver on their promises, they need to focus their investments and ensure that their strategies are achievable. Now is the time to act.

 

About the study

The Mazars C-suite barometer was designed and conducted by GQR Research, in collaboration with Mazars. Data was collected via an online survey between September 24, 2021 and October 25, 2021. The total sample is N=1,130, with 1,096 coming from online panels and 34 invited directly by Mazars by email.

About Mazars

Mazars is a partnership integrated and international, specializing in auditing, accounting, consulting, tax and legal services*. It operates in more than 90 countries and territories around the world and has the expertise of more than 44,000 professionals - 28,000+ in the partnership and 16,000+ via the Mazars North America Alliance - to support clients of all sizes at every stage of their development.

*when permitted by local legislation.