corporate clout_world's largest economic entities presentation

Looking at the top 150 economic entities, the proportion ofentities, the proportion of corporations rises to 59%


Note: Comparison of company revenues versus country GDPSources: IMF, World Bank, Fortune Global 500

is bigger than


Wal‐Mart revenues in 2009 exceeded the respective GDPs of 174 countries

The GDP of Pakistan (6th

most populous i )nation)

is bigger than +

The GDP of BangladeshBangladesh(7th most populous nation)


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)

SINOPEC

is bigger than


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Despite the auto industry’s woes, in 2009, FORD

is bigger than


Revenues of the 44 companies in the Top 100 versus global GDP, 2009 (US$ trillion)

57.9

E i l t t

6.4

R f i Gl b l GDP

Equivalent to 11% of

global GDP


Revenues of companies Global GDP

Sources: IMF, World Bank, Fortune Global 500

…BUT JUST 0.4% OF THE WORLD’S

OVER A MILLION MORE PEOPLE THAN

THE WORLD S ECONOMICALLY

ACTIVE POPULATION

THE COMBINED TOTAL POPULATIONS OF SWITZERLANDAND SINGAPORE…AND SINGAPORE…


Rank Country/ Corporation GDP/Revenues (US$ million, 2009)

1 United States 14,256,275 2 Japan 5,068,059 3 Chi 4 908 982

Rank Country/ Corporation GDP/Revenues (US$ million, 2009)

26 Taiwan Province of China 378,969 27 Saudia Arabia* 369,671 28 V l 337 2953 China 4,908,982

4 Germany 3,352,742 5 France 2,675,915 6 UK 2,183,607 7 Italy 2,118,264 8 Brazil 1,574,039

28 Venezuela 337,295 29 Greece 330,780 30 Islamic Republic of Iran 330,461 31 Argentina 310,065 32 Denmark 309,252 33 South Africa* 287,219

9 Spain 1,464,040 10 Canada 1,336,427 11 India* 1,235,975 12 Russia* 1,229,227 13 Australia 997,201 14 Mexico 874 903

34 ROYAL DUTCH SHELL 285,129 35 EXXON MOBIL 284,650 36 Thailand 263,889 37 BP 246,148 38 Finland 238,128 39 United Arab Emirates* 229 97114 Mexico 874,903

15 Korea 832,512 16 Netherlands 794,777 17 Turkey 615,329 18 Indonesia 539,377 19 Switzerland* 494,622

39 United Arab Emirates 229,971 40 Columbia* 228,836 41 Portugal 227,855 42 Ireland 227,781 43 Hong Kong SAR 210,731 44 TOYOTA MOTOR 204,106

20 Belgium* 470,400 21 Poland 430,197 22 WAL‐MART STORES 408,214 23 Sweden* 405,440 24 Norway 382,983 25 Austria 381,880

45 JAPAN POST HOLDINGS 202,196 46 Czech Republic* 194,828 47 Israel 194,825 48 Malaysia 191,463 49 Egypt 187,954 50 SINOPEC 187,518


25 Austria 381,880 50 SINOPEC 187,518


Number of companies in the Top 100 global economic entities Note: A key study was done in 1996 by Sarah Anderson and John Cavanaghf h fof the Institute of

Policy Studies which found 51 companies in the world’s top 100

5045 44 44

pglobal economic entities using the same approach. (See Corporate Empires

2000 2005 2008 2009

Empires, Multinational Monitor, December 1996, Volume 17, Number 12.)




Source: Fortune Global 500

N b f i f d l d t i d

1

5 445

50

Number of companies from developed countries and RDEs in the Top 100 global economic entities

5990

100

Number of companies from developed countries and RDEs in the Top 150 global economic entities

49

58

4

25

30

35

40 912 12

50

60

7080

90

940

3640

5

10

15

20 9183

74 76

1020

30

40

50

0

5

2000 2005 2008 2009

US, Europe, Japan RDEs

0

10

2000 2005 2008 2009


, p , p

Sources: IMF, World Bank, Fortune Global 500US, Europe, Japan RDEs

WHICH INDIVIDUALS AND GROUPS INFLUENCE AND SHAPE THE WORLD IN WHICH WE LIVE AND OPERATE?

Business Leaders

Media Social Networks

Financial Power Brokers

Religious Leaders Academics

Ideas to

Impact

NGOs Govern‐ments Individuals


Political O i ti

GeographiM k t Criminal

The Influence Landscape

ConsumerLearner/NGOs

Business Leaders Transnational

Organizations

Organizations

“Industry” Communities

c Markets

Military

Criminal Organizations

Social Organizations

Employee/Decision‐maker

Family member

Learner/ Teacher

Govern‐ments

Media

NGOsFinancial Power Brokers

Shapers & Individuals & Their Roles

Business Organizations

Belief‐based Organizations

Citizen/ Politician Leader/

FollowerReligious Leaders

Social Networks

Shapers & Influencers

Activist/ Member

Innovator

Influencer

Academic Institutions

Consumers/ Individuals

• Competition for impact• Increasing interconnections• Exploding channels of influence• Individual choice & power rising


• Individual choice & power rising• Disruptive technology shifts

CEO of the decade:Let’s show the world how to Google: “When it’s too easy

AREAS OF INFLUENCE: Consumption, raw materials, economic growth, employment, capital flows,

CEO of the decade: “Innovation distinguishes between a leader and a

follower.”

Google: When it s too easy to get money, then you get a lot of noise mixed in with the

real innovation and entrepreneurship. Tough

times bring out the best parts

trade, politics, the environment and even popular culture.

of Silicon Valley.”

"Be nice to nerds. Chances are you'll end

ki f "

Empowering the bottom of the pyramid: "I thought if you can

up working for one. "

"One hundred years from now, I expect the Tatas to be much bigger than it is


pyramid: I thought, if you can become an angel for 27 dollars, it would be fun to do more of it."

now.”

Share of Total Global R&D Spendingp g

35

40

45

Americas

U S

15

20

25

30U.S.

Asia

Japan

China

0

5

10

15India

Europe

Rest of World

Total (US$billions): 1121.8 (2008) 1112.5(2009) 1156.5(2010)

2008 2009 2010


Sources: R&D Magazine (Emerging Economies Drive Global R&D Growth), 2009; Booz & Co Global Innovation 1000 study 2009

25%

Growth in Value of Global Exports

Transportation Services

Fuels & Mining Products20%

000 to 200

8 (%

)

Total Commercial Services

Transportation ServicesOther Commercial

Services

Total Merchandise

15%

ual G

rowth Rate 20

TravelAgricultural Products

Manufactures5%

10%

Average

Ann

0%

0 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000

Value of World Exports 2008 (US$ billion)


p ( $ )

Source: World Trade Organization

Investor and Target Regions and Countries in Overseas Land Investment for Agricultural Production, 2006–May 2009(Number of signed or implemented deals)

1

6

1 2

1

41

4

Question:What will be the economic and

13 1 51 2 3

221

12

2

124

1 1 31 6

1

1 2 11

10 4

12

political impact of relatively

poorer countries trading their

future resources1

2

1

1

1 1

21

2

1

future resources away for gains

today?Will such

investments be

Notes: This figure includes only confirmed deals that have been signed, of which some have been implemented. However, not all signed deals were eventually implemented, and signed deals that were rescinded

Investors’ country

Target country

sustainable?


by one or both parties before the end of May 2009 have been excluded from the map. Prospective deals which have been reported in the press, but have not progressed to the stage of agreements have been excluded. China and the Russian Federation are both investors and targets for "land deals"; China is primarily an investor, and the Russian Federation Is primarily a target for such deals. The total number of deals is 48, shown by both source and destination countries.Source: UNCTAD

Smart partnering to ensure sustainable supplies of critical raw materials1

Unilever is the world’s largest buyer of tea. In 1999, Unilever Tea Kenya started a pilot program in Kericho to apply company sustainability principles to the production of tea. The initiative focused on improving productivity, sustainability, and environmental management, as well as energy and habitat conservation. For Unilever, growing pressure on natural resources means

p g pp

that securing high‐quality, long‐term supplies of critical raw materials is of paramount strategic importance.

The Kericho initiative had a direct impact on the company’s ability to control the supply of tea not just today but also into the future, while simultaneously enhancing Unilever’s corporate reputation with both consumers and employees. Company leadership felt that higher short‐t t f t i h d b th l t t t i d U il i d f itterm costs were far outweighed by the long‐term strategic edge Unilever gained for its raw‐materials supplies and brands. In 2008, as a signal of its commitment, Unilever expanded the scope of its sustainable‐agriculture program, pursuing certification from the Rainforest Alliance for all Lipton tea farms by 2015.

The smart partnering approach simultaneously benefited society. The initiative increased farmer revenue through a 10 to 15 percent premium paid above market prices It alsofarmer revenue through a 10 to 15 percent premium paid above market prices. It also positively impacted issues of significant concern for governments and farmers alike, including improving farmer skills, environmental protection, and sustainable production methods, as well as enhancing local associated jobs.

Note 1: Adapted from “Making the Most of Corporate Social Responsibility” Tracey Keys


Note 1: Adapted from “Making the Most of Corporate Social Responsibility”, Tracey Keys, Thomas W. Malnight and Kees van der Graaf, The McKinsey Quarterly, December 2009

This presentation is adapted from the article “Corporate Clout: The Influence of the World’s Largest 100 Economic Entities ” by Tracey Keys and Thomas Malnightthe World s Largest 100 Economic Entities, by Tracey Keys and Thomas Malnight, first published in August 2010 on www.globaltrends.com.

To access the list of the top 100 economic entities, please go to the website toTo access the list of the top 100 economic entities, please go to the website to download a complementary copy of the full article and to access further materials on global trends topics.

About the Authors

Tracey Keys is Director of Strategy Dynamics Global Limited and also works with the International Institute for Management Development (IMD), in Lausanne, Switzerland, where Thomas Malnight is a professor of strategy

d l


and general management.

corporate clout_world's largest economic entities presentation

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