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LONDON, August 11, 2020 /PRNewswire=KYODO JBN/ --

- A new PwC survey of CEOs across the globe looks at the outlook for growth and

the impacts of the COVID-19 pandemic on the way businesses operate now and in

the future.

- According to CEOs, shifts towards remote working, automation and low-density

offices are here to stay.

- Climate change, supply chain safety and adapting the customer experience are

amongst additional trends driving further long term change.

The need for business leaders and policy makers to fundamentally rethink the

way they plan, invest and operate in the future is underlined in a new survey

of 699 global CEOs released by PwC.

The survey shows the majority of CEOs believe that COVID-19 pandemic driven

shifts towards remote collaboration (78%), automation (76%) and fewer people

working from offices (61%), are here to stay. Overall, 61% say their business

model will be more digital in the future - a change accelerated by the pandemic.

Responses show digital infrastructure, flexible working and employee well-being

will top their boardroom agendas as they reconfigure business operations to

secure growth in the next 12 months and beyond. Fifty-eight percent of CEOs say

ensuring supply chain safety will remain a focus, driving technology

investments to enable tracking of products from production to delivery, and to

ensure their suppliers and partners are resilient during crises.

"Business leaders need to simultaneously keep their company running today and

fundamentally rethink their strategy for tomorrow, so they come out of the

pandemic ready to reconfigure their business to thrive in a very different

world. And they need to do that, thinking not just about the COVID-19

acceleration of change in society and the rising expectations of their broader

stakeholders, but also the other issues that are going to fundamentally reshape

the future of business - from climate change to populism," says Bob Moritz,

Global Chairman, PricewaterhouseCoopers International Limited.

In a challenge to decades of increased globalisation, almost two in five (39%)

of CEOs believe there will be a permanent shift towards onshoring and

insourcing, and a similar share expect an enduring increase in nationalism.

Kristin Rivera, Global Leader, Forensics & Crisis, PwC US, comments:

"The COVID-19 pandemic has reminded CEOs of the importance of building

resilience into their operating model. Firms that were able to quickly adopt

digital working practices or switch their supply chains were better able to

withstand the shock. CEOs now need to simultaneously contend with the unfolding

pandemic and to rethink how they operate in the future. Not every innovation

developed in a crisis is right for the long term, but there is much to learn."

CEOs are naturally cautious on their own revenue growth prospects in the year

ahead (45% somewhat confident: 15% very confident). 65% are predicting a

decline in global growth. Concern about the global economy is highest in

Africa, Central & Eastern Europe, Asia and Latin America.

Business leaders also believe the pandemic increased the importance of

responding to a wider range of stakeholder issues, particularly employees.

Employee support measures included health and safety (92%), well-being (61%)

and financial support (24%). Forty-two percent made contributions to community

organisations and almost a third (32%) of business leaders reduced their own

pay. Those CEOs who maximised retention (36%) and protected employee health and

safety (92%) believe it will have a positive impact on their organisation's

long-term reputation.

Bhushan Sethi, Joint Global Leader, People and Organisation, PwC US, comments:

"The accelerated shift to flexible working has been valuable for many

companies. Whatever new models emerge, it's clear that employee-oriented

policies that invest in safety, protection and well-being could become the new

differentiator for recruitment, retention and company reputation."

The changes driven by COVID-19 add significantly to an already full agenda for

CEOs. Climate change remains an influential trend for consumers and businesses

alike. When asked if the shift to climate change mitigation would endure, the

majority of business leaders (47%) said it would. Business leaders believe

short term increases in disposables (including sanitizers, masks) and decreases

in the use of the sharing economy would only be temporary.

Limited retreat from cities

While the majority of CEOs (61%) believe that there will be lower workplace

density than before, they remain divided about what role cities will play in

the future: 34% believe the shift towards de-urbanisation will continue; 38%

believing it is temporary.

Divided about the role of government

Business leaders are not expecting extended government support, with the

majority (57%) believing state intervention to be a temporary feature, despite

the potential for governments to use the support to influence COVID-19 recovery

and policies impacting business. Less than one in three (30%) believe

government support will be sustained, despite a gloomy outlook for global and

organisational growth prospects in the next 12 months. One in five respondents

say they declined government backed support for their business during the pandemic.

Bob Moritz comments:

"Some CEOs may feel like they've passed a critical test. What's critical now is

that they use the important knowledge they've gained about their organisations

effectively for business and society. The most enduring shift in this pandemic

is the reality that it can no longer be a choice between the long and the short

term. We need to address both."

About the survey:

PwC's CEO Panel survey, conducted in June and July 2020 as an extension of

PwC's Global CEO Survey — reflects the views of 699 CEOs on emerging business

models and key trends resulting from COVID-19. They are leaders of private

businesses and public companies, of small firms and $1 bn+ enterprises, and

represent a diverse cross-section of industries, countries and territories.  

Respondents came from 67 countries/territories including: Western Europe (42%

of respondents): North America (7%); Middle East (3%).

About PwC

At PwC, our purpose is to build trust in society and solve important problems.

We're a network of firms in 157 countries with over 276,000 people who are

committed to delivering quality in assurance, advisory and tax services.

Find out more and tell us what matters to you by visiting us at www.pwc.com.

PwC refers to the PwC network and/or one or more of its member firms, each of

which is a separate legal entity. Please see www.pwc.com/structure for further details.

(C) 2020 PwC. All rights reserved

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Source: PwC