As we move forward into 2025, a clear vision for the future emerges: organizations must embrace proactive leadership, ethical decision-making, and sustainable practices to thrive in a world defined by disruption and opportunity.
Table of Contents
The State of our World 20205
The “State of Our World 2025” report by Oliver Wyman Forum provides a roadmap for navigating a rapidly evolving global landscape, outlining nine megatrends reshaping industries, economies, and societies. Here are the key takeaways:
Geopolitical Shifts
The world is transitioning to a multipolar order, with multi-aligned powers like Brazil, India, and Saudi Arabia now contributing over 20% of global GDP, a dramatic rise from 8% during the Cold War. Protectionist trade measures have surged, tripling since 2009, with the US, China, and the EU responsible for more than half of these interventions. Leaders must adopt a geopolitics-first mindset to navigate these dynamics effectively.
Rewiring Supply Chains
Supply chains are under immense pressure, with 65% of companies facing critical bottlenecks. Dependence on China, particularly for Tier 2 and Tier 3 suppliers, has grown up to 150 times in some sectors. Diversifying supply chains and adopting advanced technologies for better visibility and resilience are crucial.
AI Transformation
Despite the buzz around AI, only 17% of companies report exceeding their expectations with AI investments, even though 97% recognize its transformative potential. Sectors like healthcare and banking have already achieved over 10% cost savings, showcasing AI’s value when applied strategically.
Demographic Challenges
Global fertility rates have fallen below replacement levels, creating significant economic pressures. Women disproportionately bear the burden of unpaid care work, performing three times more than men, which limits workforce participation and productivity.
Workforce Evolution
The workforce is being reshaped by AI and demographic shifts. While 85 million jobs may be displaced by AI by 2025, 97 million new roles are expected. Agile organizational models have shown to improve market delivery speed by 60% and innovation by 59%, offering a blueprint for adaptation.
Customer-Centric Business
Consumer loyalty is declining, with 62% of customers switching brands after a single poor experience. At the same time, global advertising spend has doubled to $1 trillion over the last decade, emphasizing the need for businesses to deeply understand and meet evolving customer needs.
CEO Reinvention
Leadership is being redefined in this era of disruption. CEOs are increasingly required to prioritize geopolitical risks, with 86% of leaders already taking short-term actions to address political and economic challenges.
A Year of Upheaval?
Putting more color on the state of the market can be found at the INSEAD Knowledge article “The World Economy in 2025: A Year of Upheaval?” and discussion with INSEAD Professor Antonio Fatas sharing how the global economy in 2025 will be shaped by a complex interplay of opportunities and challenges.
Emerging markets, particularly in Asia, are expected to drive growth, while advanced economies may experience a resurgence in productivity thanks to technological advancements. However, geopolitical tensions, trade uncertainties, and the reversal of globalization pose significant risks. Europe faces demographic challenges, low productivity, and the need for substantial investments in critical sectors. Rising government debt, increasing interest rates, and global trade tensions threaten economic stability, with potential black swan events adding to the uncertainty.
Despite these challenges, the world economy has shown resilience, but navigating this landscape will require strategic decision-making and collaboration.
Moving from Capitalism to “Peopleism”: A Framework for Boards
In his book Capitalism to Peopleism, Ravi Chaudhry, the global strategist and former Chair of Tata Group Companies, proposes eight commitments for sustainable corporate leadership. Boards have a pivotal role in driving these commitments, and here’s how they can take action:
1. Respect for Human Rights
- Supply Chain Transparency: Ensure visibility into Tier 2 and Tier 3 suppliers to mitigate risks like forced labor and unethical practices using AI and geospatial technologies.
- Equitable Workforce Practices: Implement equitable labor standards globally, ensuring compliance with human rights laws and promoting dignity in the workplace.
- Diversity in Leadership: Commit to recruiting diverse leadership that reflects human rights values, including gender, ethnicity, and cultural representation.
2. Respect for Nature
- Circular Economy Initiatives: Promote recycling, reuse, and sustainable product lifecycle management.
- Net-Zero Commitments: Accelerate efforts toward achieving carbon neutrality, ensuring all business decisions align with planetary boundaries.
- Biodiversity Preservation: Integrate practices that protect ecosystems, such as reducing resource extraction in vulnerable areas and investing in nature-positive solutions.
3. Truthful Media
- Fact-Checking Protocols: Invest in technologies and partnerships to verify the authenticity of information before dissemination.
- Ethical AI Usage: Establish ethical guidelines for AI in media production to combat misinformation and reinforce trust in digital content.
- Transparency Reporting: Regularly publish metrics on corporate transparency to build public trust in communications and operations.
4. Genuine Gender Equality
- Technology Access fand Education or Women: Ensure women have equitable access to education and opportunities in emerging technologies like AI and robotics.
- Equal Pay Initiatives: Conduct regular wage audits to close gender pay gaps and ensure pay equity at all levels.
- Family-Friendly Policies: Offer paid parental leave and childcare support to reduce barriers to workforce participation for women.
5. Benevolent Governance
- Stakeholder Engagement: Develop frameworks to incorporate stakeholder perspectives into strategic decisions, ensuring alignment with long-term sustainability goals.
- Scenario Planning: Prepare for geopolitical, economic, and climate disruptions with robust risk assessment and adaptive strategies.
- Ethics Committees or in Committees: Ensure dedicated ethics committees or ethics ownership in an existing comittee to oversee decision-making processes and ensure alignment with moral and social standards.
6. Inclusive Economics
- Support for SMEs: Promote diverse supply chains by collaborating with small and medium-sized enterprises, particularly those led by underrepresented groups.
- Community Investments: Invest in local infrastructure, education, and healthcare to foster economic resilience in underserved regions.
- AI for Economic Inclusion: Use AI to identify and address inequalities, such as optimizing financial inclusion and enabling access to affordable services.
7. Transparent Justice
- Robust Compliance Frameworks: Develop comprehensive compliance programs to ensure adherence to global ethical standards and laws.
- Ethical Supply Chains: Require suppliers to demonstrate compliance with ethical and legal practices, with independent audits.
- Justice for Whistleblowers: Strengthen mechanisms to protect and reward whistleblowers who expose unethical practices.
8. Winning Peace to End Wars
- Responsible Investment: Avoid investing in regions or industries linked to conflict, ensuring ethical financial practices.
- Peacebuilding Partnerships: Collaborate with international organizations to support initiatives that promote global peace and conflict resolution.
- Education for Peace: Support educational programs that promote understanding and collaboration across cultures and borders.
Boards as Agents of Change
The challenges and opportunities of the coming decade demand bold, integrated action from corporate boards. By embracing these commitments and implementing strategic actions, boards can navigate the complexities of geopolitics, AI, and workforce transformation while fostering a more sustainable and equitable future. With a focus on long-term impact and inclusive leadership, businesses can thrive in this transformative era.
Join Us: Vision 2025 Webinar
We are excited to invite you to an engaging webinar on January 28th, from 08:00 to 09:30 CET, where we’ll explore:
“A Shared Vision for 2025: Board Leadership in Embracing 8 Sustainability Commitments”
Agenda:
- Welcome and Introduction
- Keynote Presentation: The 8 Commitments and the Board’s Role by Ravi Chaudhry, Strategist and Former Chair of Tata Group Companies
- Interactive Poll and Breakout Room Discussions: Engage with peers on the board’s role in sustainability
- Feedback and Reflections: Insights from discussions and commentary by Ravi Chaudhry
- Closing Remarks and Next Steps
This session is designed to revisit key commitments, inspire forward-thinking leadership, and explore how boards can foster meaningful change through courage, collaboration, and integrity.
Learn more and sign up here (board mandate required)
Let’s come together to create a purpose-driven 2025. Join us as we lead with intent, embrace sustainable practices, and set the foundation for lasting impact.
References:
- State of Our World 2025 (2025, Oliver Wyman)
- Capitalism to Peopleism (2024, Ravi Chaudry)
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Webinars, Peer Exchanges and Events
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About Boards Impact Forum and the blogpost
Events arranged by Boards Impact Forum in collaboration with World Economic Forum (Non Profit Board Network, partnering with Board Networks , Digoshen and Next Agents )
This blogpost is also shared at the blog of Digoshen.
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