Understanding the reputational risks of corporate engagement on societal issues is more critical—and complex—than ever. Gravity Research’s proprietary Q1 Risk Index quantifies corporate reputational risk across nine pressing societal issues, helping companies navigate growing stakeholder pressures and shifting political headwinds with data-driven analysis.
Key Insights from Q1
Record-High Risk for DEI and LGBTQ+ Equality
This quarter’s edition reveals high-risk scores in a third straight quarter for DEI and LGBTQ+ issues, driven by a wave of Trump administration actions rolling back DEI in federal agencies, targeting contractors, and pressuring private sector programs. Various agencies including the Dept. of Justice and FCC ramped up enforcement, pressuring private sector DEI efforts and prompting real-time shifts in corporate policy. Meanwhile, intensifying scrutiny around Pride participation creates new risks for external engagements.
AI Joins the Risk Index
AI rapidly climbed the ranks of executive concerns in 2024. While AI-related reputational risk remains relatively low, Gravity Research will continue to monitor and score AI in future Risk Index reports, tracking regulatory uncertainty and workplace concerns, which are projected to increase risk in 2025.
Tracking the Trump Effect
Our Q1 analysis also reflects the broader implications of Trump-era governance, tracing how societal issue risk has evolved since President Trump’s inauguration. Companies now face a delicate balancing act—responding to growing stakeholder expectations amid increasing pressure to comply with the administration.
What to Watch in Q2
- Growing contention around transgender issues and DEI are elevating risk around Pride and putting a spotlight on corporate engagement.
- An economic downturn or tariff-driven price hikes could cause an uptick in anti-corporate sentiment.
- Growing discontent with the Trump administration’s actions may increase pressure for companies to speak out on divisive social issues such as immigration and LGBTQ+ rights
Get ahead of the risks–download the report.
About the Risk Index:
Gravity Research’s Risk Index leverages our unique methodology to calculate a quantitative score assessing the reputational risk of today’s most pressing societal issues. Our analysis identifies the key factors driving risk and forecasts how risk could shift over the next quarter, empowering business leaders to strategically manage their brand reputation and communicate upwards about where to prioritize their efforts.
