In today’s unpredictable global climate, managing a company’s reputation has become more complex and critical than ever. According to a recent Reputation Risk Index developed by the Global Situation Room in collaboration with the Global Risk Advisory Council, companies must tread carefully to avoid association with certain high-profile figures or controversial technologies.
One of the most significant threats highlighted in the report is the misuse of artificial intelligence. Companies using AI unethically—such as for deepfakes or spreading false information—face serious reputational consequences. These technologies can mislead the public and damage trust, especially if the company fails to manage or fully understand how these tools are being used. The council noted that AI misuse could have lasting consequences that are difficult, if not impossible, to undo.
The lack of regulation around AI makes it even more dangerous, the report notes. Brands that handle the technology irresponsibly may gain a short-term edge, but those that stay cautious can still suffer by association. The concern is growing, and council experts believe this risk will only get worse in the future.
Elon Musk, the billionaire behind Tesla and SpaceX, is another focal point in the index. While undeniably influential, his involvement with controversial issues and figures has made him a reputational risk for companies.
Since acquiring Twitter, now called X, and aligning himself with President Donald Trump, Musk’s actions have sparked global backlash. Media coverage surrounding him has been overwhelmingly negative for the past few months. Almost 30% of the council’s members placed being criticized by or connected to Musk as one of the most damaging risks for brands, ranking him second on the index.
Another rising concern is companies pulling back from inclusion, diversity, and equity efforts. This trend has become more visible as political pressures intensify. In the U.S., the Trump administration is reportedly targeting DEI initiatives, not only in academic institutions but also in the corporate world.
About 20% of council members view the rollback of DEI commitments as a major threat to brand reputation. Once public trust is lost in these areas, it’s incredibly difficult to regain. These concerns aren’t limited to the U.S., either. DEI backsliding is becoming noticeable across Europe as well.
Other issues flagged by the index include accusations of copying intellectual property, engaging in anti-competitive behavior, and price manipulation.
The consequences of reputational damage are tangible. Tesla has reportedly experienced attacks on its vehicles and showrooms both domestically and overseas after Musk was appointed to lead DOGE. Meanwhile, the company’s stock dropped significantly—from $479 in December 2024 to $254 by mid-April 2025.
As global uncertainties and shifting political winds continue, the Reputation Risk Index aims to serve as a guide for corporate leaders. Isabel Guzman, the new Global Risk Advisory Council chair, stressed the need for companies to adapt quickly to evolving social and political dynamics. She described the current business landscape as one where clear communication and a firm understanding of external conditions are more important than ever.
Entities like Thumzup Media Corp. (NASDAQ: TZUP) are particularly sensitive to threats to their reputation so they normally go the extra mile to guard themselves against corporate risks.
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