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© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 1Corporate Clo...
© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 2THE WORLD’S L...
© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 3OF THE WORLD’...
© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 4Royal Dutch S...
© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 52012revenuesa...
© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 6In fact, the ...
© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 7The largest 5...
© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 8The largest 5...
© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 9Between them ...
© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 107.971.7Reven...
© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 11…and employe...
© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 12The Top 50 G...
© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 13The Top 50 G...
© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 14BUT: The num...
© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 15THE BRICS AN...
© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 16The first de...
© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 17There is a c...
© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 18The evolutio...
© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 19Compared wit...
© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 20LOOKING FORW...
© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 21Urban clout:...
© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 22Private clou...
© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 23State clout:...
© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 24…along with ...
© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 25THE BOTTOM L...
© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 26TIME FOR RES...
© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 27Why does cor...
© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 28Perhaps they...
© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 29As global ch...
© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 30The challeng...
© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 31It’s time fo...
© Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 32www.globaltr...
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Corporate clout 2013: Time for Responsible Capitalism

In 2012, 40 of the world's largest economic entities were public corporations, but it's a number that is down 20% since 2000. This special report explores why and how the distribution of corporate clout is shifting rapidly, with new players and models emerging. It's not enough though to have clout: companies need to start taking responsibility for a greater role in society, commensurate with their influence and impact, according to CEOs of leading global firms.

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Corporate clout 2013: Time for Responsible Capitalism

  1. 1. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 1Corporate Clout 2013:Time for Responsible Capitalism
  2. 2. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 2THE WORLD’S LARGEST 100 ECONOMICENTITIES IN 2012
  3. 3. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 3OF THE WORLD’S LARGEST 100ECONOMIC ENTITIES IN 2012:40 ARE CORPORATIONSLooking at the top 150 economic entities, theproportion of corporations is 58%, slightlydown from 2011 (58.7%) but at the samelevel as in 2010 (58%)Note: Comparison of company revenues versus country GDPSources: IMF, Fortune Global 500, 2012
  4. 4. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 4Royal Dutch Shell revenues in 2012 exceededthe respective GDPs of 171 countries– all those in green on the mapThis file is licensed under the Creative CommonsAttribution ShareAlike 3.0 License. In short: you are free to share andmake derivative works of the file under the conditions that youappropriately attribute it, and that you distribute it only under a licenseidentical to this one. Official license Subject to disclaimers.
  5. 5. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 52012revenuesare biggerthan theGDPs ofColumbiaVenezuelaSouth AfricaAustria&Note: All logos are the property of the respective companies.
  6. 6. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 6In fact, the largest 5energy companies in theworld in 2012 hadrevenues equivalent to2.9% of total globalGDP!That’s slightly more thanRussia, the eighthlargest country in theworld in terms of GDP!Note: All logos are the property of the respective companies.
  7. 7. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 7The largest 5automakers in the worldin 2012 had revenuesequivalent to 1.24% oftotal global GDP!More than the GDP ofthe Indonesia!Note: All logos are the property of the respective companies.
  8. 8. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 8The largest 5 financialservices companies inthe world in 2012 hadrevenues equivalent to0.97% of total globalGDP!More than the GDP ofSwitzerland!Note: All logos are the property of the respective companies.
  9. 9. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 9Between them these 15 corporate titansemployed almost 5 million people in 2012:More than the entire population of Norway……OR Ireland…OR Malta, Qatar and Kuwait combined!++
  10. 10. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 107.971.7Revenue of companies Global GDPTogether in 2012, the 40 companies among the world’s largest100 economic entities generated revenues ofover US$ 7.9 trillion…Sources: IMF, Fortune Global 500, 2012Revenues of the 40 companies in the Top 100 versusglobal GDP, 2012 (US$ trillion)Equivalent tojust under 11% ofglobal GDP
  11. 11. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 11…and employed 12.8 million people…BUT JUST 0.4% OFTHE WORLD’SECONOMICALLYACTIVE POPULATIONOVER A MILLIONMORE PEOPLE THANTHE TOTALPOPULATION OFGREECE…
  12. 12. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 12The Top 50 Global Economic Entities, 2012 – the 1st 25Sources: IMF,, Fortune Global 500, 2012Rank2012Rank2011Country/ Corporation Country of Companies GDP/Revenues (US$million, 2010)% Change 2011 to 20121 1 United States 15,684,75 4.0%2 2 China 8,227,04 12.4%3 3 Japan 5,963,97 1.1%4 4 Germany 3,400,58 -5.7%5 5 France 2,608,70 -6.1%6 7 United Kingdom 2,440,51 0.4%7 6 Brazil 2,395,97 -3.9%8 9 Russia 2,021,96 6.5%9 8 Italy 2,014,08 -8.3%10 10 India 1,824,83 -0.7%11 11 Canada 1,819,08 2.1%12 12 Australia 1,541,80 3.4%13 13 Spain 1,352,06 -8.6%14 14 Mexico 1,177,12 1.6%15 15 Korea 1,155,87 3.5%16 16 Indonesia 878,198 3.8%17 18 Turkey 794,468 2.6%18 17 Netherlands 773,116 -7.7%19 19 Saudi Arabia 727,307 8.6%20 20 Switzerland 632,400 -4.3%21 24 Islamic Republic of Iran 548,895 10.7%22 21 Sweden 526,192 -2.3%23 25 Norway 501,101 2.1%24 23 Poland 487,674 -5.1%25 22 Belgium 484,692 -5.8%
  13. 13. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 13The Top 50 Global Economic Entities, 2012 – the next 25Sources: IMF, Fortune Global 500, 2012Rank2012Rank2011Country/ Corporation Country of Companies GDP/Revenues (US$million, 2010)% Change 2011 to 201226 31 ROYAL DUTCH SHELL Netherlands 484,489 28.1%27 27 Argentina 474,954 6.8%28 26 Taiwan Province of China 473,971 2.1%29 32 EXXON MOBIL U.S. 452,926 27.7%30 28 WAL-MART STORES U.S. 446,950 6.0%31 29 Austria 398,594 -4.7%32 38 BP U.K 386,463 25.1%33 30 South Africa 384,315 -4.5%34 37 Venezuela 382,424 20.8%35 41 SINOPEC GROUP China 375,214 37.236 36 Columbia 366,020 11.7%37 33 Thailand 365,564 5.8%38 34 United Arab Emirates 358,940 5.0%3948CHINA NATIONALPETROLEUM China 352,338 46.7%40 35 Denmark 313,637 -6.0%41 40 Malaysia 303,527 5.4%42 42 Singapore 276,520 4.1%43 46 Nigeria 268,708 10.1%44 44 Chile 268,177 6.8%45 45 Hong Kong SAR 263,021 5.7%46 51 STATE GRID China 259,142 14.5%47 50 Egypt 256,729 9.0%48 52 Philippines 250,436 11.4%49 43 Finland 250,126 -5.1%50 39 Greece 249,201 -14.1
  14. 14. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 14BUT: The number of corporations among the world’s 100largest economic entities has fallen 20% since 2000 – WHY?Sources: IMF, Fortune Global 500, 2012Note: A key studywas done in 1996by Sarah Andersonand John Cavanaghof the Institute ofPolicy Studieswhich found 51companies in theworld’s top 100global economicentities using thesame approach.(See CorporateEmpires,MultinationalMonitor, December1996, Volume 17,Number 12.)Number of companies among the Top 100global economic entities5045 44 44 42 40 402000 2005 2008 2009 2010 2011 2012
  15. 15. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 15THE BRICS AND BEYOND (“B&B”): ANOPPORTUNITY AND A MINDSET FORGROWTH
  16. 16. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 16The first decade of the 21st century saw a generationalshift in economic power – one that will continue200020112050160%1550%2100%Developed marketsEmerging & other marketsGrowth marketsRealGDPgrowth(projected)since200031%23%46%9%13%Source: Goldman Sachs78%63%12%25%
  17. 17. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 17There is a clear change in the corporate world ordertowards the BRICS and beyond (B&B)…Key shifts in the Fortune Global 500 List• US firms still dominate with 132 companies in 2012, but this is down from 186companies in 2001• Chinese companies now number 73 on the 2012 list, including three of the top 10,versus just 12 in 2001• Today Asian headquarters are dominating with more than 34% (172 companies) ofGlobal 500 firms, a huge increase from 118 companies in 2001, while North Americanheadquarters represented only 29.2% or 146 companies down from 215 companiesin 2001.
  18. 18. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 18The evolution of the Top 100 global economic entities shows theemergence of these new global challengersSources: IMF, World Bank, Fortune Global 5004940 36 40 36 34 3215 8 46 6 82000 2005 2008 2009 2010 2011 2012U.S, Europe, Japan RDEsNumber of Companies from Developed Countriesand RDEs in the Top 100 Global Economic EntitiesNumber of Companies from Developed Countriesand RDEs in the Top 150 Global Economic Entities91 83 74 76 72 73 705912 12 15 15 172000 2005 2008 2009 2010 2011 2012U.S, Europe, Japan
  19. 19. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 19Compared with developed world multinationals, B&B playershave a mindset for growth“There’s a lot of protection of what we built in Europe. We’re protecting our dreamnow, and we’re afraid that by giving just one concession that we’re going to lose it all.But in Asia they’re generally building their dreams, and many of them have very littleto lose. That is a generalization, of course, but there is a dynamic and an energy thatis driven by the hope and belief that tomorrow is going to better. It’s almost tangible.”Peter Borup, the head of Asia at Norden, the Danish shipping group (and currentlypresident of Lauritzen Bulkers A/S)“We are introducing what we call our 10x10 strategy, which means growing ten timesin ten years. This means a compound annual growth rate of 27%. If we make it only to‘8x10,’ we will do that.”Adi Godrej, Chairman of The Godrej Group, a consumer goods multinational basedin IndiaSource: Ready? The 3Rs of Preparing Your Organization for the Future, Thomas W. Malnight, Tracey S. Keys,Kees van der Graaf, © 2013, www.3RsReady.com
  20. 20. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 20LOOKING FORWARD: NEW ECONOMICPLAYERS, NEW MODELS FOR GROWTH
  21. 21. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 21Urban clout: The growth of the city-stateTODAY:LARGE CITIES ARE HOMETO 38% OF THE WORLD’SPOPULATION ANDGENERATE AROUND 72%OF GLOBAL GDPFROM 2010-2025:600 CITIES WILL GENERATE65% OF OF GLOBAL GDPGROWTH OR US$ 30TRILLION – ALMOST HALFTHIS GROWTH WILL BEFROM THE 440 EMERGINGCITIESSource: The McKinsey Global Institute• Already major cities such as London and New York would make theTop 100 economic entities list.• By 2025, Istanbul’s GDP could be close to that of Austria, while NewDelhi’s GDP could rival that of New Zealand.
  22. 22. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 22Private clout often comes with a longer term approachSome private companies would clearly make the Top 100 list – and many are not subject toshort-term pressures from financial markets.Commodity giant Cargill isthe largest privately heldcompany in the U.S.With 2012 revenues ofUS$134 billion, it would placeat 87th in the Top 100 list.Vitol is the biggestindependent energy trader inthe world.With 2012 revenues of US303billion, it would place at 41stin the Top 100 list……alongside Malaysia.Sources: Forbes, Fortune, company websites
  23. 23. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 23State clout: the state-owned enterprise is once again inascendance…Over 10% of the firms on the Forbes Global 2000 list of the world’slargest companies are state-owned, with combined sales in 2011equivalent to 6% of global GDP.13 of the largest energy companies in the world are state-owned –and between them control between 75% and 90% of the world’s oiland gas reserves.Sources: VOX, Forbes, The Economist, Bain
  24. 24. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 24…along with sovereign wealth funds*This number is a best guess estimate.Source: http://www.swfinstitute.org/fund-rankings/NorwayGov. PensionFund – GlobalUS$664.3UAE – A.B.Abu DubaiInvestmentAuthorityUS$627ChinaSAFEInvestmentCompanyUS$567.9*Saudi ArabiaSAMA ForeignHoldingsUS$532.8ChinaChinaInvestmentCorporationUS$482China – H.K.H.K. MonetaryAuthorityInvestmentPortf.US$298.7KuwaitKuwaitInvestmentAuthorityUS$296
  25. 25. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 25THE BOTTOM LINE147 =THE NUMBER OF CORPORATIONS (“SUPER-ENTITIES”) THAT CONTROL 40% OF TOTALGLOBAL VALUE CREATIONSource: The Global Network of Corporate Control, Stefania Vitali, James B. Glattfelder, and Stefano Battiston , Swiss Federal Institute of Technology,http://www.sg.ethz.ch/research/economic_networks/ownership_networksThe “money men” also have significant influencethrough control of value creationThe starting point:43,000 Transnational corporations (TNCs)
  26. 26. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 26TIME FOR RESPONSIBLE CAPITALISM
  27. 27. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 27Why does corporate, urban, state, and super-entity cloutmatter?Spheres of influence• Employment• Value creation/wealth distribution• Economic and social policies, legislation and regulation• Research and innovation• Trade• Investment• Resource use and sustainability• Environment• Role models for the future of business and society• Global challenges, e.g. water, food, energy securityInfluencethat is oftengreater thanthat of thenations,societies andcommunitiesin whichlargecorporationsoperate
  28. 28. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 28Perhaps they have a point…This file is licensed under the Creative Commons Attribution ShareAlike 2.0 License. Author: CrispinSemmens.
  29. 29. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 29As global challenges increase, so do expectations ofbusiness to step up to a bigger role in society• “As business we need to start becoming part of the solution to today’s challenges. Notjust because it’s time for business to be givers and not takers from the system that givesus life in the first place, but because the only way to guarantee long-term prosperity is togrow our businesses in line with the needs and aspirations of the communities we serve.• “There is a huge opportunity for businesses that embrace this new model of responsiblecapitalism, but it does require a different approach. This goes well beyond CSR. It’s aboutmoving to a licence to lead, where business sees itself as part of society and not separatefrom it; where the focus is on the long term, not on quarterly earnings; and where theneeds of citizens and communities carry the same weight as those of shareholders. Itmoves business well beyond the concept of shared value to one of shared responsibility –shared responsibility for developing more inclusive and equitable growth within theconstraints of the planetary boundaries.”Paul Polman, CEO of UnileverSource: Ready? The 3Rs of Preparing Your Organization for the Future, Thomas W. Malnight, Tracey S. Keys,Kees van der Graaf, © 2013, www.3RsReady.com
  30. 30. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 30The challenge for major corporates withglobal clout, both those on the list of the Top100 global economic entities, the 147economic super-entities, and those beyond,whether SOEs or private, is to recognize andto act on the mutual interdependencebetween nations, societies and firms.
  31. 31. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 31It’s time for responsible capitalism.How is your organization tackling thechallenge?
  32. 32. © Strategy Dynamics Global SA. All rights reserved. Not to be used without permission. www.globaltrends.com 32www.globaltrends.comThis presentation is adapted from the article “Corporate Clout 2013: Time forResponsible Capitalism,” by Tracey Keys, Thomas Malnight and Christel Stoklund,first published in June 2013 on www.globaltrends.com.To access the list of the top 100 economic entities and further analysis click here.About the AuthorsTracey Keys is a Director of Strategy Dynamics Global Limited, publisher of www.globaltrends.com. She works withsenior executives worldwide on complex strategy issues and to translate global trends into action today. ThomasMalnight is a professor of strategy and general management at the International Institute for ManagementDevelopment (IMD), in Lausanne, Switzerland. Christel Stoklund is Head of Research of Strategy Dynamics Global SA.

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