Latest / C-Suite Perspectives / Governance Is Changing. Find Out What's on Deck for 2026
Transcript
- 0:00Welcome to C-Suite Perspectives, a signature series by The Conference Board.
- 0:04I'm Steve Odland from The Conference Board and the host of this podcast
- 0:07series, and in today's conversation, we're going to talk about The Conference
- 0:12Board's latest survey, called the C-Suite Outlook, which is our big annual survey,
- 0:17and specifically, the implications for governance and sustainability.
- 0:21Now, this survey was carried out towards the end of 2025, with more than
- 0:261,700 C-Suite executives from around the world, including over 770 CEOs.
- 0:33So this is a big survey, lots of input from people around the
- 0:37world, and it's the 27th year that we have conducted this specific
- 0:42survey, so lots to talk about today.
- 0:45And joining me today is Brian Campbell, the head of our US
- 0:48Governance and Sustainability Center.
- 0:50Brian, welcome to the show.
- 0:53Thanks, Steve.
- 0:53Delighted to be here.
- 0:55So Brian, you've been a general counsel of several companies
- 0:58and doing this your whole life.
- 0:59All of the stuff that your fellow GCs and CEOs and other C-Suite members
- 1:05have talked about, you've lived.
- 1:06So it's very appropriate that you comment on it.
- 1:09But as we look at this survey, what are executives saying about ESG in 2026?
- 1:18Yeah, Steve, I think it's interesting the spectrum of commentary we've gotten
- 1:22would indicate that ESG priorities are maybe being deemphasized.
- 1:27So essentially reframed, if you will, from aspirational to more of a focus of
- 1:33execution under constraint, interestingly.
- 1:36So I think the focus is now on material ESG issues that have a clear
- 1:42business relevance, accountability, and measurable outcomes, which is something
- 1:46that it didn't previously used to be.
- 1:49Yeah.
- 1:49Well, ESG got religion for a while and was a huge mantra.
- 1:54And then it got in political crossfire and became a little unpopular.
- 1:58And so, you and I have seen this in our careers.
- 2:01The pendulum swings back and forth, and this just feels like a normal
- 2:05swing, where maybe it went a little bit too far and now it's more
- 2:09business-oriented and KPI-oriented and show me the results, right?
- 2:14I think that's spot on, Steve.
- 2:16At the end of the day, you step back from it and say, OK, companies were
- 2:20putting out the flag and posting that for ESG and goals and initiatives
- 2:25and really taking a big stance.
- 2:27Now, I think, they've pulled back from there.
- 2:30And particularly, as far as prioritization, ESG is being crowded out
- 2:34by some of the other key issues that have come up: governance, AI, political risk.
- 2:39So de-emphasizing ESG, if you will, in that context.
- 2:43Yeah.
- 2:43And environmental, social, and governance.
- 2:45I mean, there's still a lot that companies are really focused on.
- 2:48I think it went a little far.
- 2:49There was some greenwashing going on, the term that we've used in
- 2:52the past, where people just got out over their skis on this thing.
- 2:56So maybe this is a little bit healthy.
- 2:58But it's interesting, this survey, if you could put a one-word headline
- 3:02on it, it would be uncertainty.
- 3:04And I know the future's uncertain, so in some ways, it's like, yeah, what's new?
- 3:07But there's a greater level of uncertainty coming from elected
- 3:11officials, governments, regulatory schemes around the world.
- 3:15So it's this exogenous environment that's creating kind of an unlevel
- 3:19playing field in an unknown, isn't it?
- 3:22Absolutely.
- 3:23I think, what's fair to say that ESG is still there, it has not gone away, but
- 3:27certainly is less prominent than it was on the agenda for most companies these
- 3:32days, particularly in the United States.
- 3:35Yeah.
- 3:36So, one of the key things that we heard about was this rising concern about AI.
- 3:42Talk about what we heard there.
- 3:45Sure.
- 3:45I think what we're seeing is AI has emerged and is seen as a
- 3:49fantastic opportunity for companies.
- 3:51It can be transformative for an organization, but there's also a view
- 3:55that there's a source of execution and governance risk associated with it.
- 4:00So the opportunity that is there is balanced out by
- 4:04potential risk, if you will.
- 4:06I think some companies that have embarked early on AI initiatives have
- 4:10seen uneven returns on their investment.
- 4:13They've identified lack of organizational readiness, data
- 4:16quality, model accountability, and even workforce capability.
- 4:20So I think we're still in the learning phase of this, and
- 4:24the governance implications are that there's risk in addition to
- 4:28what is significant opportunity.
- 4:30Yeah.
- 4:30A few years ago, I don't think many executives could spell AI.
- 4:33I mean, it was a brand-new thing.
- 4:34It was like, what is this?
- 4:36And last year in our survey, we saw that people were afraid
- 4:39of falling behind competition.
- 4:40And so they were just going to spend like crazy.
- 4:42And they did.
- 4:43This year, you see a little more focus on it.
- 4:46OK, now we know what it is.
- 4:47We've played with it for a while.
- 4:49We kind of see what its uses are in our business.
- 4:52And so we need some ROI, and we heard that in the survey.
- 4:55And then we need to make sure that there's governance of this, which you mentioned.
- 5:01What are the areas that the CEOs and generals counsel are worried
- 5:05about, from a governance perspective?
- 5:08Well, I think at the end of the day, you could characterize AI as being fraught.
- 5:13it's fraught with opportunity.
- 5:14There's excitement about that.
- 5:15There's a notion that if you're not actively engaged in pursuing
- 5:19AI, you're behind the curve.
- 5:21Yet, at the same time, GCs, CLOs, and the board itself are
- 5:26focused on the risk exposure that's potentially generated here.
- 5:30So I think what you get at the C-Suite and board level is this: AI is being judged
- 5:36relative to enterprise risk management and strategy for the organization.
- 5:40And it has to be balanced out.
- 5:42So there is a focus on controls, organizational readiness, and a
- 5:46focus on, what are we actually trying to accomplish with the AI?
- 5:50And what exposure do we particularly want to focus on
- 5:54containing as we go down that path?
- 5:57Yeah, and you have to think about that in the context of all
- 5:59of the constituents, don't you?
- 6:00I mean, from a customer standpoint, how you make sure that you
- 6:03don't offend customers or change this experience negatively.
- 6:09For employees, it's the same thing.
- 6:10You don't want to demotivate employees, you don't want to lose your employees.
- 6:14Owners, you don't want to reduce returns, and so forth.
- 6:17So all of the constituents need to be taken into account here, and hence, it
- 6:22really does need to be on the heat map.
- 6:24And people need to look at this in the context of risk.
- 6:28Now, where inside management does that lie, the tracking and all of that.
- 6:35And then also, where does that lie in most boards of directors?
- 6:38Is that still an audit committee function?
- 6:41Well, that's an interesting question, Steve.
- 6:42I think within the C-Suite, you've got a focal point that clearly the
- 6:47chief technology officer, chief information officer are instrumental in
- 6:51assessing AI opportunity and AI risk.
- 6:54And certainly, the CLOs, GCs are focused on the risk and containment on that.
- 7:00And then I think as you push up to the board level, it has in many cases
- 7:04fall into the audit committee, simply, in the context of compliance and risk
- 7:09oversight, functions that the audit committee typically has looked at.
- 7:13But I think there is also this notion of opportunity.
- 7:16So it's fraught, and there is opportunity.
- 7:18And I think, from a strategic standpoint, there needs to be an acknowledgement
- 7:22of that at the board level.
- 7:23And that may not sit squarely within typical audit committee-type functions.
- 7:29So I think more opportunity for AI to evolve outside of just the
- 7:32compliance and risk management.
- 7:35That really means that all the committees need to assess their
- 7:38charters and make sure that they're looking at their appropriate slice of
- 7:43risk management and oversight, right?
- 7:45Yes, and very much a conversation with the CEO and part of the
- 7:48strategic focus for the organization.
- 7:51Another area in the survey which popped out this year is political
- 7:55uncertainty and public policy volatility.
- 7:59This is what's majorly behind the uncertainty issues.
- 8:03How are you seeing, or behind that, what are you seeing in terms of political
- 8:07uncertainty and public policy risks?
- 8:10Right.
- 8:10I think public policy and political uncertainty are tops,
- 8:14particularly in North America.
- 8:16I think there's a significant focus on that from a risk perspective.
- 8:20And I think there's an acknowledgement, from CEOs and the board, that
- 8:24volatility is maybe the new normal.
- 8:27There's persistent volatility.
- 8:28It's not necessarily short-term disruption that's only tied to election cycles.
- 8:33It seems to be more of a constant.
- 8:36And so I think we look for more of that as we move forward.
- 8:39Yeah, I think it is interesting, and there's a lot of geopolitical unstability.
- 8:44Just every region, it seems every week, there's something new happening.
- 8:49What should CEOs and especially GCs be doing?
- 8:52How do you track that?
- 8:53How do you then assess the risks to your individual company?
- 8:59Steve, if you look back to traditional strategic planning for organizations,
- 9:04the company would look out, not just at the current quarter, but down the
- 9:07road quarter by quarter, by year, three years, five years, 10 years,
- 9:12and try and have that long-term view.
- 9:14I think that's particularly challenging today, given the volatility, given
- 9:18disruption that seems to be a constant.
- 9:21And so I think companies are trying to take that longer-term view and investing
- 9:25more in scenario planning, regulatory focus, and internal documentation.
- 9:30But at the end of the day, when you're exercising decision-making capabilities,
- 9:35you want to minimize the variables, stop the variables from moving.
- 9:40I think that's a challenge in the current environment, given the volatility.
- 9:43There seems to be a moving target.
- 9:45You'd love to have firm ground underneath you as you make your decisions.
- 9:49And it almost feels like there's the opportunity for quicksand, or
- 9:52the ground to shift under your feet.
- 9:54It is a challenge.
- 9:56Yeah.
- 9:56And I think that, our listeners would benefit from checking in on The
- 10:00Conference Board's Gray Swan tool, which we've developed, and you can
- 10:04find that at our website at tcb.org.
- 10:07But that tool, you know, a Gray Swan event is not a Black Swan event.
- 10:11A Gray Swan event is forecastable, but it's rare.
- 10:14And a lot of this uncertainty and volatility comes from events that
- 10:18are rare, but you can predict them with some level of certainty.
- 10:21But you can run this through the tool and make your assessments for your firms.
- 10:25So, let's also move on to the erosion of institutional
- 10:29predictability and the rule of law.
- 10:32There's concern about that around the world.
- 10:36Rightfully so, Steve.
- 10:37I think we've heard, from the survey and anecdotally, that many US CEOs
- 10:42are very concerned about the potential further erosion of the rule of law.
- 10:46And I think this gets back to my prior comment about trying to
- 10:49have firm ground underneath you.
- 10:50Once something like the rule of law starts to slip, it gets harder to
- 10:55forecast and make your decisions.
- 10:57And I think the US political environment, currently characterized
- 11:00by intense polarization and frequent legal challenges, to both
- 11:04executive and regulatory authority, is making this challenging.
- 11:08It makes it harder for companies to plan confidently across their
- 11:12multi-year investment horizons and make long-term decisions.
- 11:15Really is.
- 11:16It's tough, and there's, this old saying that just give us the rules,
- 11:20And we'll take it from there.
- 11:21But increasingly, generals counsel, CEOs are having to deal with a little
- 11:27bit of quicksand around the rules.
- 11:28And I guess that it requires a degree of flexibility and
- 11:32nimbleness in how you operate.
- 11:35For sure.
- 11:36And I think particularly, as you look at the rule of law, it's ingrained in being
- 11:40able to have precedent and predictability.
- 11:44And once that starts to slip, a lot of other things fall by the wayside.
- 11:48Companies are concerned that even if they comply, that's no longer
- 11:52a guarantee that they're safe.
- 11:53At the end of the day, there's still litigation.
- 11:56There's retroactive scrutiny, second-guessing, and shifting enforcement
- 11:59priorities that are out there that are affecting many companies today.
- 12:03And a lot of select enforcement, depends on what administration is
- 12:07in, and you know what their focus is.
- 12:10It's fraught with risk, I guess, is the point.
- 12:12And you can't always predict it.
- 12:13But it also means that if a company has some sort of regulatory
- 12:17action against it, it doesn't necessarily mean it's a black mark.
- 12:20It's kind of the role of doing business now, isn't it?
- 12:24Right.
- 12:24I think that's spot on, Steve.
- 12:26The challenge has been, as you look back to the last year or so, even law
- 12:30firms who are typically sought out to provide guidance and advice, have
- 12:34found themselves in the crosshairs.
- 12:36And that's quite unusual, particularly as it relates to rule of law-type issues.
- 12:40So, I think we'll, we'll have to get a better lens on this as we go forward.
- 12:45But certainly, law firms and their clients were caught surprised by that.
- 12:50We're talking about The Conference Board's latest C-Suite Outlook survey.
- 12:53We're going to take a short break and be right back.
- 12:57Welcome back to C-Suite Perspectives.
- 12:59I'm your host, Steve Odland, from The Conference Board, and I'm joined today
- 13:02by Brian Campbell, who's the head of the US Governance and Sustainability Center.
- 13:06OK, so lots of stuff in this survey.
- 13:08Again, it's 27th year we've done it, Brian.
- 13:11We had over 1,700 C-Suite executives respond.
- 13:15We talked at the beginning about ESG, which is environmental,
- 13:18sustainability, and governance, but environmental and sustainability
- 13:22priorities, they haven't gone away.
- 13:25But there's a different level of emphasis depending on where
- 13:29companies sit around the world.
- 13:34I think that's right, Steve.
- 13:35Particularly, it's a challenge for multinational companies, right?
- 13:38There's a different perspective on environmental and sustainability
- 13:42priorities between, say, north America and Europe.
- 13:45And that divergence is reflected in political, legal, and regulatory
- 13:49issues coming up, and not necessarily by differing approaches
- 13:53to climate issues or awareness.
- 13:56A significant share of North American CEOs in the survey say
- 14:00that environmental issues are not a near-term growth priority for them.
- 14:04And in part, that's due to evolving political and regulatory climate in
- 14:08the US, which has increased emphasis on fossil fuels and de-emphasized
- 14:13renewables, as well as slowed the pace of energy transition.
- 14:16But I think that's just kind of the nature of where we are.
- 14:19But the regulatory environment in Europe is still pretty
- 14:23strict, as it relates to it.
- 14:24So companies have to focus on that.
- 14:27Yeah.
- 14:27And this changes depending on every country's regulatory scheme, and the
- 14:32administration changes, and so forth.
- 14:34So this is an area where generals counsel need to keep an eye
- 14:37on things and help guide their companies around the world on it.
- 14:41But how are we seeing executives reframe environmental sustainability?
- 14:46Over the past few years we had these really lofty goals,
- 14:49carbon-free 2030 or whatever year they put on it, and so forth.
- 14:54How do you describe what they're doing in reframing them?
- 14:59Yes, I think right now, Steve, it shifted from the aspirational notions of what ESG
- 15:05could be into environmental sustainability being increasingly justified through
- 15:11cost control, efficiency, and resilience.
- 15:14I think that that focus, the lens has really dialed in on what can we
- 15:19do that would deliver sustainability in a cost-effective manner and
- 15:24that we can tie results to, as opposed to planting the flag on
- 15:28big, broad, and aspirational goals.
- 15:32Yeah, so it's, they're more specific and more specific to
- 15:35their industry and their company.
- 15:37Actually, I think they're, rather than being very general, they're more
- 15:41geared to the needs and desires of each of their constituency groups.
- 15:46If you have customers who are looking for one thing, or owners who are looking for
- 15:50one thing a lot, there's a little more freedom of companies to be specific and
- 15:55hone their goals directly to those needs.
- 15:59Absolutely.
- 16:00And there has been a shift from that aspirational model into execution.
- 16:05And companies have viewed the opportunity to use it as a competitive
- 16:09advantage, if they are able to deliver on sustainability initiatives, to
- 16:13show that their competitors are not.
- 16:15But it's not across the board, and I don't think it's a uniform approach on that.
- 16:19Another area in the survey that CEOs and other executives were concerned
- 16:24about is workforce resilience.
- 16:26And you think about that, well, that's all HR stuff, so, but really, when you
- 16:31talk about workforce, education, economic opportunity, mental health, all of the
- 16:35social priorities, it's not just an HR issue, it really is core to a company's
- 16:41strategy, how they govern, what they want to be, what their goals and values are.
- 16:46And that's really the job of the entire C-Suite, isn't it?
- 16:50Absolutely.
- 16:51I think that the notion that mental health as a company issue, the focus
- 16:56has now shifted to a realization that that directly affects productivity,
- 17:01retention of employees, safety, and leadership effectiveness, even.
- 17:06So at the end of the day, it's higher on the priority list
- 17:09for the C-Suite to deliver.
- 17:11There's execution that companies need to engage in.
- 17:13There's workforce readiness, education, and economic opportunity
- 17:17that runs across the workforce.
- 17:19And so I think the workforce is being elevated as a key stakeholder
- 17:23in the organization, maybe more so than it was in the past.
- 17:27The one thing that kind of surprised me in this, although we've been writing
- 17:30about it at The Conference Board.
- 17:32Is the focus on mental health.
- 17:33There's always been this notion of well-being and companies' focus on
- 17:37well-being, which was health, it was safety, it was benefits so forth.
- 17:43This is a little different.
- 17:44This is a slice of well-being, but mental health is rising as an issue.
- 17:48And it's not just the stress created within the organization.
- 17:51I think most companies are doing a pretty good job of that.
- 17:54It's the mental health of the issues that are coming into the company.
- 17:59How are GCs and other members of the C-Suite dealing with this?
- 18:04Right.
- 18:05I think Steve, if you look back to the past few years we've had some
- 18:08choppy issues that have come up.
- 18:10Obviously, the pandemic and the shift to remote work and now
- 18:13bringing folks back to the office.
- 18:15We had a lot of social issues that were being addressed, and
- 18:18being addressed, quite frankly, by CEOs and corporate positioning.
- 18:22So I think it's an acknowledgement that there are deeper issues here, and that
- 18:26the mental health of the workforce is something that needs to be focused on.
- 18:30And companies are going the extra mile to try and deliver on that.
- 18:35Yeah.
- 18:35And it's not the fault, necessarily, of a leadership group and an organization.
- 18:41But in order to have an effective employee group, in order to maintain
- 18:45your culture, in order to really take care of your own people, and then, as
- 18:49part of that, you're taking care of your customers, you have to provide resources.
- 18:52You've got to provide training to leaders to spot the issues
- 18:56and help people through them.
- 18:58And so it's a more complex work environment than it's been in the past.
- 19:03Right.
- 19:03I think clearly an acknowledgement that it's a key component of the stakeholder
- 19:07base that needs to be accounted for, and certainly should not be taken for granted.
- 19:11And you've been a GC.
- 19:13A lot of these areas have been taboo.
- 19:15You have HIPAA, but these are areas you just wouldn't deal with because
- 19:18they were fraught with legal risk.
- 19:20And I think this is where lawyers really need to help their client,
- 19:24their internal clients navigate this, because you can't just ignore it.
- 19:29I think we're finding at The Conference Board that there's
- 19:31obviously the legal implications, but then the human capital side of it.
- 19:35This is a place where a company should be investing to shore up the workforce, and
- 19:40there's plenty of opportunity for that.
- 19:42So I think cross-functionally, you're seeing more engagement of the
- 19:46chief legal officer/GC work group with CHROs and the human resource
- 19:51component, and I think plenty of more opportunity as we go forward there.
- 19:55Governance has shifted over the years.
- 19:57I mean, I just remember, some of the first governance principles being
- 20:02drafted by companies 25 years ago or so, but there's been so much change, a sea
- 20:08change of corporate governance over time.
- 20:11And so, we kind of move from compliance-focused models, where
- 20:17everybody's just trying to get off of classified boards, you're trying to fix
- 20:21all of the and get in compliance with all of the various governance, rules,
- 20:26regulations, and demands, frankly.
- 20:29But now it's more towards an execution, governance that is internal and extra,
- 20:34but related to the execution of the business and driving the business.
- 20:39Describe the change as you see it, and what governance is today.
- 20:45Certainly, Steve.
- 20:46You referenced my earlier experience with this as I was growing up as a
- 20:50chief legal officer, general counsel.
- 20:52The view was that corporate governance guidelines were proscriptive and
- 20:56designed to say we're complying with the rules and extending the rules
- 21:01out even in a broader sense to how we're going to organize and operate.
- 21:05And I think now there's been a sea change.
- 21:07I think you've identified that governance is increasingly today
- 21:11viewed as an enabler of growth, not primarily a compliance function.
- 21:15And revenue growth and strategic planning are now top governance
- 21:19priorities across regions, and that did not used to be the case.
- 21:24And so therefore, the governance experts in the company typically
- 21:28have been the general counsel and the corporate secretary.
- 21:31Now it really requires a broader participation.
- 21:36Absolutely.
- 21:37And I think boards are focused on this in a big way now.
- 21:40There is the natural enterprise risk management focus and focus
- 21:45on succession planning, as well, at the top levels of the organization.
- 21:49And those remain important but now are maybe becoming secondary to
- 21:54execution demands, if you will, with boards emphasizing skills, oversight
- 21:59capacity, and decision-making speed over what would traditionally be more
- 22:03structural reform and compliance.
- 22:06Wrapping all this up, I think this survey shows that there is an evolution
- 22:12here on what boards and executives are focused on for 2026, and it
- 22:17relates to ESG, legal, regulatory.
- 22:20How would you summarize the change from where we've been over the past few years
- 22:25to where we're going forward here in '26?
- 22:29I think, Steve, governance priorities for '26 reflect an emphasis on
- 22:33performance alongside compliance.
- 22:36So CEOs and the C-Suite executives are elevating strategy execution
- 22:41and revenue growth while continuing to address established governance
- 22:45areas such as enterprise risk management and succession planning.
- 22:49When you look back to earlier periods, ESG efforts, particularly, were shaped
- 22:53by expanding commitments and voluntary frameworks and reputational signaling.
- 22:58I think today, that environment is marked by persistent volatility, AI
- 23:03complexity, as we've discussed, and sharper legal and regulatory issues.
- 23:07So I think it's a brave new world, if you will.
- 23:11Any final thoughts, Brian, on the results of this survey?
- 23:15It's going to be borne out in the year ahead, Steve, but at the end of the day,
- 23:18for CEOs and the C-Suite, the central challenge in '26 is not really whether
- 23:23to engage on ESG, but more so how to do so selectively and with discipline.
- 23:28I think tightening oversight, prioritizing material risks and opportunities,
- 23:33and ensuring that governance and sustainability efforts reinforce
- 23:36trust, resilience, and long-term value creation in a fragmented and
- 23:40uncertain operating environment.
- 23:42More to come, but plenty of opportunity as we look forward.
- 23:45Yeah, it's going to be an interesting year.
- 23:47I mean, times are a changin', for sure, and week to week.
- 23:50And this is where C-Suites need to be diligent, keep your eye on
- 23:54what's going on, and strategy needs to be a little bit flexible here
- 23:58to adapt to a changing environment.
- 24:01Right.
- 24:02I think the trusted insights for what's ahead that The Conference Board delivers
- 24:06are essentially in need right now.
- 24:08Amen.
- 24:09And you can find the results of this survey, the C-Suite Outlook survey
- 24:14for 2026, on our website at tcb.org.
- 24:19Scroll down and you should be able to see the results.
- 24:21Very interesting results.
- 24:23Lots of detail there.
- 24:24Brian Campbell, thanks for being with us today.
- 24:27Thank you, Steve.
- 24:28Appreciate the opportunity.
- 24:29And thanks to all of you for listening into C-Suite Perspectives.
- 24:33I'm Steve Odland, and this series has been brought to you by The Conference Board.