Mazars launches the latest C-Suite barometer and executives are optimistic for a year of transformation, but want greater regulation and ethical guidelines.
- Business leaders who are confident in their ability to manage the main external trends and the emergence of new technologies.
- International expansion is becoming increasingly important, alongside sustainability and attracting talent as a priority.
- Greater commitment to sustainable growth in a global economy as a strategy.
Lisbon, March 27th: Mazars, the international audit, tax and consulting firm, has launched its latest C-Suite barometer: Outlook 2024. Optimism and confidence are at an all-time high, according to the barometer. Businesses are looking to a positive future, and leaders are confidently seeking expansion and growth.
Mazars' annual analysis brings together the views of leading executives from around the world. With the opinion of around 800 executives from 30 countries, the C-suite barometer: Outlook 2024 reveals the strategic priorities on the agenda and the market trends and transformations that are likely to have an impact on companies in the coming years.
- Optimism reaches a record level - 89% of the leaders have increased revenues compared to the previous year and 94% have a positive outlook for expected growth in 2024, eight points higher than last year.
- Economic factors, including inflation and the high cost of living (37%), and energy prices (33%) are the main external trends that will affect companies this year. The emergence of new technologies (33%) is also expected to have a significant impact. Companies are confident that they are prepared.
- On average across all business activities, the percentage of companies that have increased investment has risen to 66% (3% more than last year) and 44% are “very confident” that they can manage external trends (6% above 2023).
- Transformation through Information Technology (IT) or emerging technologies is the top strategic priority for leaders for the second year running. Three-quarters of those already using generative Artificial Intelligence (AI) in their organization say they have ethical concerns and 95% say more regulatory guidance is needed.
- International expansion has risen in importance from fifth to second place, along with new or revised sustainability and talent strategies. It is only technological transformation that comes out ahead as the top strategic priority for the next 3-5 years (35%).
- Leaders are also showing a greater commitment to sustainability, with an increasing number of organizations reporting on their impact and budgeting specific costs for ESG reporting. However, more than a third of leaders (37%) say they lack internal knowledge when it comes to human rights data and reporting - 10% more than in 2023.
“The high levels of optimism and renewed confidence among our respondents are an indicator of how businesses can progress this year. In the face of volatility, the C-suite has shown resilience and agility, allowing it to continue to invest and transform the business, while addressing the challenges and opportunities of emerging technology, expansion plans and the ESG agenda, preparing businesses for sustainable growth.”, says Mark Kennedy, partner and member of the Executive Board of Mazars Group.
“In what could be a year of recovery for companies, there will still be difficult decisions to make, but we can see a growing awareness and confidence in the priority areas that guarantee sustainable economic growth in the global economy.”, adds Mark Kennedy.
Mazars is launching its latest C-Suite barometer and this Outlook 2024 offers an insight into the market trends and transformations that are expected to have an impact on companies, the strategic priorities on the C-suite agenda, the challenges and opportunities that influence growth, with insights to help prepare for this year and the next.
Transformation in a digital world
IT transformation in companies continues to be at the top of the agenda for business leaders, with a third (32%) considering it a top strategic priority.
The emergence of new technologies is expected to have an impact on companies, but the majority of executives (87%) say that their company is prepared. In terms of regulating new technologies, 95% of the leaders believe that it is essential or important to have more regulation at national or international level when it comes to controlling generative AI.
The demand for greater regulation and control has not impacted the leaders' vision, with 85% believing that generative AI will have an impact on their organization and three quarters stating that they are already using it internally and/or for products/services. It is important to note that three quarters of those who are already using AI express ethical concerns about the technology. Half expect AI to replace some jobs in their organization and 57% say this is already happening or will happen in the next year.
Increased international expansion as a strategic priority
A quarter of the C-suite executives surveyed named international expansion as one of their strategic priorities, placing this priority in the top 3 of the Mazars barometer for the first time. 53% of the leaders also expect organic growth to be an important driver of expansion in 2024.
The main destinations for international expansion are China, Germany and the USA, with France and the UK growing at a good pace. Canada, along with Brazil, is also among the destinations to which companies intend to expand in 2024.
Recognizing major sustainability commitments
The wave of expectations regarding sustainability continues throughout the business world. Almost three-quarters (71%) of organizations produce a sustainability report, and more and more organizations consider taking this aspect into account in budget planning (72%) - the highest figure recorded to date for both in the annual C-suite business barometer.
Data collection and quality continue to be the main challenge, but understanding regulation comes next, with an increase from 21% last year to 31% this year. New regulations, such as the EU directive on corporate sustainability reporting, also seem to be having an impact, as the challenge of understanding regulation is felt more in Europe - it's a priority for 35% of executives.
Human rights is the area of sustainability communication with the greatest increase among respondents, confirming the challenges related to data collection and quality. It is also clear that more and more leaders recognize human rights as an area about which there is a lack of internal knowledge - rising from 27% to 37% this year.
The new “laws” of talent attraction
Competition in the talent market continues and almost half of the C-suite executives recognize that it is difficult to hire, with 44% stating that they have difficulty recruiting talent for their organization and 30% confirming that it is more difficult to hire at senior executive level.
With a potential risk in training the next generation of C-suite leaders, executives are prioritizing new strategies and believe that learning and development opportunities are essential for attracting the best people who, in turn, will contribute to the long-term growth of companies.
About Mazars
A Mazars is a partnership an international integrated firm specializing in audit, accounting, consulting, tax and legal services*. Operating in over 95 countries and territories worldwide, we draw on the expertise of more than 47,000 professionals - 30,000+ in the UK. partnership integrated Mazars and 17,000+ via the Mazars North America Alliance - to support clients of all sizes at every stage of their development.
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