Updated on Sunday, 19 September 2021 – 13:50
The latest KPMG report echoes the confidence in the future of large companies, which will give greater centrality to social and environmental problems
The future looks hopeful from the offices of large Spanish companies. 90% of CEOs of companies with a turnover of more than 500 million trust that their companies will grow in the immediate future, according to the CEO Outlook 2021 report carried out by the Dutch consulting firm KPMG. In addition, 86% plan to increase their workforce in the next three years.
Currently in Spain there are more than 3.5 million unemployed, of which 38% are under 25 years of age, according to EPA data. A complicated situation for many families to which is added, among other factors, a decrease in purchasing power due to a generalized increase in inflation, which in our country is at a 3.3% year-on-year, according to the latest data from the National Institute of Statistics.
Against this background, optimism about overcoming the Covid-19 crisis is beginning to be noticed in the managers surveyed, of whom 80% trust that the promotion of employment and their business growth will be extended to the rest of the country. This trend is in line with the CEOs of the other 10 countries surveyed for the report and from which emerges the enormous confidence of these large companies in the economic recovery. While last year only 32% believed that the expansion of the economy was possible, this year this belief has increased to 62% of the participants.
The strategies that respondents will apply to achieve this growth will range from organic growth, strategic alliances and company mergers and acquisitions. In addition, for these expectations to be met, large companies are aware that they will have to face the technological (technological disruption, cybersecurity) and environmental risks, which they consider a serious threat to their reputation and therefore to their growth. As it points Juan Jos Cano, CEO of KMPG and next president of the company, for Spanish CEOs it is relevant to “invest in new technologies”, as well as “to guarantee the protection of the organization against possible cyber incidents”.
This bet, added to a growing digitization could also translate into more flexible work environments that allow your workers to work from home. In fact, four out of ten CEOs surveyed trust their employees to telecommute at least 2 days a week.
The report also echoes the belief of these executives that the supposed loss of confidence of the population in their governments demands a greater corporate role in combating social problems such as gender inequality or climate change. 72% of Spanish executives assume that “large companies have resources, both financial and human, to help governments find solutions to great challenges.” For example, “26% invest at least 10% of their income in sustainability measures and programs over the next few years.”
At the same time, they demand “greater public-private collaboration to achieve the zero emissions goal,” continues the future president of KMPG. Instead, the study also highlights that 82% of the managers surveyed are “concerned” about the consequences that the global minimum tax could have for multinationals agreed in June of this year by 130 OECD countries, and which aims to prevent these companies from moving their headquarters to countries with lower tax regimes. “In this context, there is no doubt that the fiscal area will be a source of uncertainty for CEOs in the short and medium term,” he explains. Alberto Estrelles, managing partner of KPMG Abogados.
The centrality that respondents plan to give to these social problems is driven by the need to build a stronger reputation in the face of increasingly demanding demand by its stakeholders in terms of diversity, equity and inclusion. Challenges that managers want to integrate into their growth strategies, but which 45% You acknowledge that you may have a hard time satisfying.
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