Public expectations of localisation are pivotal for global reputations as confidence in government and business remains fragile

SEC Newgate’s freshly launched 2025 Impact Monitor reveals:

• Local impact matters with strong public preference for businesses that manufacture, hire and source materials locally;
• Speaking out is also important: communities expect businesses to communicate their values and speak out on social issues;
• Transparency remains the weakest link – this is where the biggest gap lies between what the community expects and what they’re actually seeing from large businesses; and
• Stronger climate ambition is widely supported, though affordability pressures continue to shape public acceptance.

Public expectations of organisational behaviour continue to outpace their perceived performance, according to the SEC Newgate 2025 Impact Monitor: Managing Reputational Risk and Opportunity in a Fragmented World. The fifth annual global study by SEC Newgate – the global strategic communications, advocacy and research group – surveyed more than 20,000 people across 20 countries and territories, revealing a persistent confidence gap as communities judge organisations on their real-world impacts.

This year’s report, released ahead of the World Economic Forum (WEF) in Davos next week, reflects a world in which global ESG frameworks are not effectively delivering cohesive narratives in local markets. It is clear that impact is defined locally, with communities assessing organisations through the lens of local jobs, local investment and local values, and their responsiveness to local priorities and pressures including outcomes for staff and the environment. The research underscores a defining challenge for global businesses: communities want companies to engage, but the issues that matter — and the stances considered credible — differ widely by market. Navigating these local expectations is now central to managing global reputation.

This year marks the evolution from the group’s previous annual ‘ESG Monitor’ to the ‘Impact Monitor’, a shift driven by the realities of a world where global narratives are giving way to local priorities and pressures, and the public is increasingly looking for positive impacts and outcomes.

Speaking on the findings, Fiorenzo Tagliabue, Group CEO of SEC Newgate, said: “Corporate reputation has shifted markedly over the past year. As political scrutiny and social expectations evolve, our Impact Monitor shows a clear pattern across markets: people judge companies by the real impact they deliver — particularly in the communities closest to their operations. This shift is redefining how organisations earn credibility and permission to operate.”

 “For global companies, the challenge is bringing differing local expectations together in a coherent global direction and, in turn, implementing that direction in ways that are meaningful in each market. Meeting this challenge requires a deep understanding of the communities, regulators, markets and media they operate among, as well as the ability to balance varied expectations while maintaining credibility worldwide.’’

The Impact Monitor also reveals a persistent gap between what the public expects from organisations and how they think those organisations are performing in traditional ESG and geopolitical matters. Yet there are some encouraging signs of progress. Over the past twelve months, perceived performance ratings have edged upwards, suggesting that many organisations are listening more closely to community concerns, responding more effectively to expectations and communicating their impact with greater clarity and credibility.

Stakeholder-oriented business models remain the preferred approach of the global public. An overwhelming three quarters (76%) of the global community believe businesses should act in the best interests of all stakeholders (i.e. customers, employees, suppliers, communities), not just shareholders. This sentiment is reflected with strong support for companies investing in local communities and sourcing from responsible suppliers, underscoring the importance of broader social value in corporate strategy.

Even as familiarity with the term ESG remains limited, the underlying issues continue to matter. Communities expect businesses to play an active role in addressing environmental and social issues, particularly in reducing carbon emissions and accelerating the transition to sustainable energy systems. But enthusiasm softens when these measures would potentially raise consumer costs, revealing the tension organisations must navigate between meaningful impact and affordability.

On social issues, the call for greater corporate engagement is unmistakable. Communities want organisations to speak out and communicate their values, even when these do not align with stakeholders or governments. There is widespread support for diversity, equity and inclusion initiatives, with many believing that businesses can, and should, do more to foster inclusive workplaces and address social challenges.

Governance remains an area where improvement is seemingly needed. Ethical conduct and accountability are seen as essential, but transparency stands out as a weak spot. Fewer than two in five (38%) of the global community believe large businesses are sufficiently open and transparent, making this the Impact Monitor’s lowest-rated aspect of governance and signalling a clear need for better communication and accountability.

Crucially, the report highlights the importance of framing impact efforts through a local lens. With geopolitical tensions on the rise, there is a growing global preference for businesses to manufacture locally, hire locally and source materials locally, even if it means higher costs for consumers. Communities increasingly link these localised benefits and outcomes to improved perceptions of organisations, reinforcing the need for companies to adapt their strategies to the realities of the markets in which they operate.

Looking at the perceived direction countries are going in, optimism is the highest in Saudi Arabia, UAE, Singapore and India where at least 8 in 10 think their country is heading on the right track (compared with the global average of 48%). Optimism varies widely by country, with sentiment most negative in France, Japan and the Netherlands, where only 1 in 4 or fewer are optimistic about their country’s direction. Levels of optimism across most countries are relatively stable compared to 2024, but there is a significant rise in optimism in both Australia and the USA, and declines in Poland and the UK.

As world leaders gather in Davos, the 2025 SEC Newgate Impact Monitor provides timely intelligence for organisations seeking to manage reputational risk and seize opportunity in an era defined by fragmentation, localisation, and rising stakeholder expectations.

The key findings of the report…

Community Interests and Concerns:

1. The top five issues of importance remain unchanged over the last 12 months:
2. Ensuring quality, affordable healthcare for everyone
3. Reducing crime and violence
4. Addressing the rising cost of living
5. Strengthening the economy
6. Ensuring secure and affordable food supplies
7. Optimism towards the direction of one’s own country varies greatly across the globe, with 48% overall thinking their country is heading on the right track.
8. Overall, the majority claim to be aware of the term “ESG” (57%), but few have a good understanding of what the term actually means (24%). This is largely unchanged when comparing only the countries surveyed in the 2024 research.
9. Despite relatively low salience of the term “ESG”, interest in the subject matter remains reasonably high. After the concept is explained to them, a third (35%) indicate a high interest level of 9 or more out of 10, representing a small increase from 2024. However, interest varies greatly by country.

Expectations and Perceptions of Corporate Behaviour:

1. Strong expectations remain for large businesses to act in responsible ways, with 54% giving this an importance rating of 9 or 10 out of 10. A similar number (57%) said the same for government, while expectations are lower for small to medium businesses (38%).
2. There were lacklustre performance ratings given to all three types of organisation, with only a quarter rating the performance of small to medium businesses at 9 or 10 out of 10 (24%), as with large businesses (25%) and government agencies or departments (25%).
3. However, there are green shoots evident, with small improvements in performance of two to three percentage points recorded over the last 12 months. Across the three types of organisations, rated performance improved the most in Italy and the UK.
4. Perceptions of industry behaviour varies widely, with the top and bottom rated industries unchanged since 2024. Tied for top of the list were supermarkets and grocery stores (with 61% giving ratings of 7 or more out of 10), renewable energy (61%) and technology (61%), while the lowest rated were alcohol (45%), mining and resources (48%) and the chemicals industry (49%).

Localisation vs Globalisation:

1. Across the globe, many feel their country should do more to strengthen local manufacturing, local food production and increase energy independence. At the same time, there is a sense of too much dependence on foreign workers, reliance on global supply chains and foreign ownership of companies.
2. A majority of around 6 in 10 would prefer to prioritise manufacturing goods locally, hiring employees locally, and purchasing raw materials or components locally, over minimising costs for consumers.
3. A large majority of about 7 in 10 would feel more positive towards a business if it can ensure localisation of manufacturing and supply chain sourcing, pay taxes locally, have a local head office and prioritise the creation of local jobs, with 4 in 10 saying they would feel a lot more positive if this were the case.

Environmental Leadership and Climate Action:

1. Six in ten feel positive towards the renewables transition, with only 11% feeling negative – largely unchanged since 2024. More people think the transition is too slow (35%) than too fast (25%), with the most common view (among 40%) being that the pace is acceptable.
2. The large majority believe it is highly important for their country or territory to act decisively on climate change, and transition to renewable or clean energy sources. Further, most say they would feel more positive towards a business if it used renewable energy (70%), or demonstrated a commitment to environmental sustainability (69%).
3. Four in ten believe that large companies are doing too little in terms of reducing carbon emissions, speaking publicly on environmental issues, and managing the impact of their business on the environment. Slightly fewer believe that businesses are doing the right amount, while only about one in ten believe there is too much occurring.
4. People clearly want environmental factors prioritised in business decision making – though many are not keen to bear the personal cost that may come with it.

Social Values and Inclusion:

1. Only a minority (around 4 in 10) believe large businesses are doing enough when it comes to a range of socially responsible behaviours, such as looking after the best interests of employees, supporting local communities and considering social issues when making business decisions.
2. There is a clear desire (among 8 in 10) for businesses to be courageous in speaking out on social issues and communicating their values – even if they don’t align with the views of stakeholders and government.
3. There is majority support for large organisations implementing a range of diversity and inclusion (DEI) initiatives, with very little opposition recorded. Support is highest for closing the gender pay gap, accessibility initiatives to maximise workforce participation and policies to creative inclusive work cultures. However, while there was still majority support for gender and other diversity targets to encourage a more balanced workforce, support was slightly softer for these.

Governance and Stakeholder Accountability:

1. Public opinion is divided on whether businesses are getting it right when it comes to governance and stakeholder accountability.
2. Three quarters (76%) feel that organisations should act in the best interests of all stakeholders, and not just shareholders.
3. Being open and transparent is the main area where people would like to see more action (42% believe large businesses are doing too little of this), followed by operating with strong morals and ethics (36%) and communicating what they’re doing to improve their performance on environmental, social and governance responsibilities (35%).