According to a new quarterly Reputation Risk Index published by Global Situation Room, Inc., companies are facing increasing reputational risks due to perceived reversals on diversity programs, misuse of artificial intelligence, and affiliation with billionaire SpaceX and Tesla CEO Elon Musk.
The Index advises businesses to exercise “more caution” when it comes to developing technologies like artificial intelligence. It is based on feedback from more than 100 prominent public affairs voices, including CEOs on the Global Risk Advisory Council and previous presidents of state.
Former US Small Business Administration Administrator and Council Chair Isabel Guzman stated, “Too often companies make decisions without fully accounting for rapidly changing social, political, and consumer realities.”
The Index, which examines the most unfavorable worldwide news coverage from the first quarter of 2025, also placed affiliation with billionaire Elon Musk among the top concerns.
DEI backtracking seen as key threat
The growing reputational penalty for businesses perceived as retreating from diversity, equality, and inclusion (DEI) initiatives is a noteworthy trend noted in the Index. As the Trump Administration increases its inspection of DEI programs in both private companies and institutions, these concerns increase.
As he pointed to a new era of corporate accountability, Guzman continued, “Understanding and adapting to these conditions will increasingly be critical in the coming years.”
Don’t chase short-term wins
The president of the Global Situation Room, Brett Bruen, advised leaders not to make snap decisions based on media cycles or political pressure.
“The Index has a clear warning for CEOs: If you waste consumer and stakeholder goodwill on these issues, it will not be returning anytime soon,” Bruen stated. “I would tell them to slow down. Differentiate between tectonic and transient shifts.
Quarterly snapshot of corporate risks
The Reputation Risk Index, which combines information from the Global Risk Advisory Council and GSR’s crisis experts, acts as a gauge of new risks to businesses and organizations. This quarter’s topics, which surfaced during a time of increased political and economic unrest, included everything from accusations of price-fixing and anticompetitive activity to AI ethics and DEI rollbacks.
“These are turbulent times, and executives must monitor emerging issues more closely,” Guzman said in response to the report’s caution.
