Cost increases have broken established business rules internationally, with key cost categories running at - or very near - record highs. Many businesses have done  their best to absorb rising costs to lessen the impact for consumers, however,there is only so much they can do before needing to raise their prices to keep up with inflation. Even so, companies can be of even greater help to consumers by switching from a mindset of “growth” to a mindset of “corporate responsibility”.

When businesses prioritize being good corporate citizens, they can continue to profit while also cultivating long term relationships with their customers. One of the key ways that companies can be corporately responsible is by prioritising their cybersecurity. As privacy concerns become increasingly top of mind for consumers and business affiliates alike, organisations must be proactive and innovative in mitigating risks and responding to crises.

In addition, advancements in artificial intelligence (AI) are proving to be a double edged sword by bringing about both unprecedented benefits and dangers. As more companies in Bahrain incorporate AI in their operations and service offerings, it is increasingly evident that the future of this technology and its implications hinge on a collective responsibility to regulate it and prevent it from falling into the wrong hands. Through collaborative and conscientious deliberation, the public and private sectors can work together to establish a set of protective regulations and best practices to enable successful navigation of the duality of AI in a manner that benefits society as a whole.

According to Bahrain.bh, the government has also established a comprehensive strategy to harness the power of AI for the benefit of its citizens, businesses, and local communities in general. The three key principles of the policy are:
First, AI should be human-centred so that it helps people - not replace them.

Second, it should be socially beneficial in making people’s lives better, especially in healthcare, education, and transportation. And third, it should be used responsibly
and ethically so as to carefully avoid problems like bias, discrimination, and security risks.

A third trend business leaders must consider in the current global is how environmental, social, and governance
(ESG) has become a vital component to business, with increasing scrutiny on companies to achieve sustainability related goals. ESG considerations have never been more important for an organisation’s long-term success and its
general perception amongst the public. Companies are now more focused than ever on finding ways to align their corporate strategies with broader goals around sustainability.

Beginning a company’s ESG journey may seem like a daunting task, but it is simply a matter of identifying the most important sustainability topics and important business issues and then determining how to make an impact in ways that are in line with the overall business strategy. Afterwards, these issues should be transparently communicated to stakeholders as the organization moves forward. Many businesses have found materiality assessments to be especially helpful in achieving this.

Tax can also serve as a powerful tool for promoting sustainability, social responsibility, and ethical governance
within any organisation. From incentives designed to promote green investments, to more transparent reporting mechanisms that can foster real trust and credibility, there are a host of ways for tax to add true value to your organisation’s ESG agenda and actively drive positive change. A Tax Advisory team could help you identify such opportunities and use them to your advantage.

Though there seems to be much that business leaders are expected to overcome, the right team and strategy will enable them to rise to the challenge. Audit, Tax and Advisory firms are especially well-placed to help Bahrain businesses adapt to the ever-evolving trends and challenges of the present global economic climate.

An Article from Grant Thornton Abdulaal

Responsibility for opinions expressed and the accuracy of
facts published in this article rests solely with the author.