Bloomberg reported that a new report shows that due to increasing polarization and disruptive events such as former President Trump’s felony conviction, the 2024 US election has become the most challenging U.S. political environment faced by businesses in recent years.

Fifty-nine percent of executives said the current situation was worse than the 2020 election season, when the global pandemic hurt the economy and race relations were volatile, according to the survey by the Conference Board, a nonpartisan think tank, and Steptoe LLP, a law firm that surveyed lobbyists and legal staff at 96 large multinational companies.

      A torn election could upend laws and regulations, making long-term planning more difficult for businesses, which are also having to deal with conflicting regulations and mandates from Republican- and Democratic-led states.

Hyperpartisanship across the country threatens businesses in multiple ways. They must navigate a consumer market fragmented by political and cultural issues. The risk has caused 60% of companies to be more selective in the social and political issues they choose, according to the survey.

      Extremism and polarization among decision-makers were cited by 71% of respondents as the main reason for the political turmoil facing businesses across all industries, while a deeply divided electorate came in second at 60%.

The third biggest source of unrest comes from within. 48% of executives believe that employee scrutiny of their company’s political and social behavior creates a challenging environment. Employees are increasingly bringing their own political beliefs into the office and expecting their employers to take a stand on controversial issues. The survey found that some employees are dismissive of opposing viewpoints or refuse to accept the legitimacy of decisions if they don’t align with their political stance.