A New Era of Public Scrutiny

The pandemic has exposed hidden socio-economic rifts in society, and created a global marketplace characterized by increased scrutiny from the public as well as governments, according to a survey by a leading business advisory firm. This leaves businesses with little wiggle room when it comes to avoiding disputes and investigations into business practices and behavior. The survey of more than 2,800 executives from large public and private companies across G-20 nations found that 83 percent either are being investigated or expect to be investigated in the next 12 months. Thirteen percent experienced class actions and mass consumer claims in the past year and one-third strongly agreed that class actions or mass claims are becoming more costly for their business, with 17 percent of legal costs expected to be spent on settlements. The respondents also feel like they are under the gun in respect to strengthening reputations, integrating technology, and upgrading environmental, sustainability and governance practices. Almost all the respondents are feeling the heat about cybersecurity, with 78 percent reporting an attack in the last year, with about one-third experiencing a loss of customer/patient data, and loss of third-party information.