In an effort to tiptoe the reputational path in a extremely unsure enterprise setting, corresponding to the present geopolitical panorama, firms should be careful to not be related to or criticised by Elon Musk, as these are among the many high reputational dangers.
That is in accordance with a brand new Popularity Danger Index, commissioned by public relations agency International Scenario Room, utilizing knowledge from disaster consultants and evaluation from the International Danger Advisory Council.
The council counts greater than 100 members, together with the likes of former CIA Director Leon Panetta and MI6 Chief Sir Richard Dearlove in addition to former heads of state and CEOs.
What they foresee as the most important rising threats to an organization’s fame was sculpted into a listing of 10 dangers, forging a quarterly Popularity Danger Index, which guarantees to assist improve executives’ potential to trace and analyse rising threats.
Misusing AI tops the record
Company fame is most severely threatened if an organization is, even loosely, related to utilizing synthetic intelligence in a dangerous or misleading manner, together with creating deepfakes. This follow is commonly related to spreading misinformation and manipulating public opinion. “AI, if not understood or managed in firms, can have an unbelievable trickle-down impact that will not be reversible,” an unnamed Council member mentioned, cited by the report.
“The usage of AI continues to be the best danger to manufacturers, with little restrictions and authorized parameters, giving unscrupulous manufacturers a leg up, whereas penalising organisations who stay diligent and cautious about its misleading potential for deceptive customers,” the Council mentioned within the danger report.
Moreover, the danger AI carries for fame is predicted to “probably enhance within the years to come back,” the report added.
Avoiding hyperlinks to the world’s richest man
Tesla CEO Elon Musk, named the world’s richest man for a number of years now, seems to be a less-than-welcome acquaintance; it’s extremely doubtless that the connection would set off heightened scrutiny for a model, in accordance with the Danger Index.
Musk, who additionally purchased Twitter, then named the social media X, is seen as a controversial determine by many. It’s particularly so since he aligned himself with US President Donald Trump throughout his marketing campaign and later grew to become the unofficial head of DOGE. He additionally had very unfavorable information protection world wide throughout the first quarter of 2025.
Now, practically 30% of Council consultants rated the very best danger was being linked to the businessman or publicly criticised by Musk. This ranking gave him the second-highest ranking on the record.
Different high dangers
Perceived backtracking on variety, fairness, and inclusion (DEI) commitments was the third high danger for manufacturers. “This comes because the Trump Administration continues to aggressively pursue not solely universities, but in addition non-public corporations for the implementation of such packages,” the report learn.
One in 5 Council members rated DEI backtracking as a extreme reputational danger. The pinnacle of the International Scenario Room (GSR), which commissioned the report, mentioned bowing to political stress within the brief time period might show to be expensive.
“The Index has an unambiguous warning for CEOs: For those who squander stakeholder and shopper goodwill on these points, it gained’t be coming again anytime quickly,” GSR President Brett Bruen mentioned.
The Council additionally sees this development outdoors of the US, saying that “DEI backtracking is notable in Europe.”
Different points harming company fame included copying artistic works, allegations of anticompetitive practices and worth fixing.
Why is it essential to regulate rising dangers for the company world?
The fame of an organization or organisation has a sizeable impression, as Tesla’s instance exhibits. There have been lots of assaults on the EV makers’ showrooms and automobiles throughout the US and even overseas, since Musk was appointed to supervise a brand new Division of Authorities Effectivity. The share worth of the corporate traded at $254 on 15 April, whereas it was value $479 on 17 December, 2024.
In these occasions of uncertainty, sprinkled with tariff information day by day, the Danger Index goals to offer steerage for company decision-making within the months and years to come back.
“Too typically firms make selections with out absolutely accounting for quickly altering social, political, and shopper realities,” Isabel Guzman, newly appointed chair of the International Danger Advisory Council, mentioned. She additionally referred to as the present local weather an “extraordinarily difficult market and communications setting” during which “understanding and adapting to those situations will more and more be important within the coming years.”
An awesome majority, 86% of the International Danger Advisory Council, imagine reputational dangers will enhance over the subsequent quarter.
As for the subsequent few months, the Council goes to observe reputational dangers associated to know-how, DEI, and geopolitical uncertainties, together with the shift from conventional US insurance policies, added the report