corporate clout distributed 2012: the influence of the world's largest 100 economic entities


Looking at the top 150 economic entities, the proportion of corporations rises to 58%

Note: Comparison of company revenues versus country GDP Sources: IMF, World Bank, Fortune Global 500, 2011


Wal-Mart revenues in 2010 exceeded the respective GDPs of 171 countries – all those in green in the map.


2010 revenues are bigger than the GDPs of

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Austria

Argentina

South Africa

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BP is bigger

than

Greece

United Arab

Emirates

Venezuela


In fact, the largest 5 energy companies in the

world in 2010 had revenues equivalent to

2.5% of total global GDP!

That’s slightly less than

Canada, the tenth largest country in the

world in terms of GDP!


The largest 5 automakers in the world

in 2010 had revenues equivalent to 1.24% of

total global GDP!

More than the GDP of the Netherlands!


The largest 5 financial services companies in the world in 2010 had revenues equivalent to

1.15% of total global GDP!

More than the GDP of

Indonesia!


Between them these 15 corporate titans employed 4.65 million people in 2010:

More than the entire population of Ireland…

…OR New Zealand

…OR Qatar and Kuwait combined!

+


7

63.1

Revenues of companies Global GDP

Revenues of the 42 companies in the Top 100 versus global GDP, 2010 (US$ trillion)

Equivalent to 11% of

global GDP

Sources: IMF, World Bank, Fortune Global 500, 2011


…BUT JUST 0.4% OF THE WORLD’S

ECONOMICALLY ACTIVE POPULATION

OVER A MILLION MORE PEOPLE THAN

THE COMBINED TOTAL POPULATIONS

OF GREECE AND QATAR…


Sources: IMF, World Bank, Fortune Global 500

Rank 2010

Rank 2009

Country/ Corporation Country of Companies GDP/Revenues (US$ million, 2010)

% Change 2009 to 2010

1 1 United States 14,526,550 4.2% 2 3 China 5,878,257 17.8% 3 2 Japan 5,458,797 8.5% 4 4 Germany 3,286,451 -0.6% 5 5 France 2,562,742 -2.6% 6 6 United Kingdom 2,250,209 3.1% 7 8 Brazil 2,090,314 30.6% 8 7 Italy 2,055,114 -2.9% 9 11 India 1,631,970 29.0% 10 10 Canada 1,577,040 17.9% 11 12 Russia 1,479,825 21.1% 12 9 Spain 1,409,946 -3.9% 13 13 Australia 1,237,363 25.2% 14 14 Mexico 1,034,308 17.6% 15 15 South Korea 1,014,482 21.6% 16 16 Netherlands 780,668 -1.9% 17 17 Turkey 735,487 19.7% 18 18 Indonesia 706,752 31.3% 19 19 Switzerland 527,920 7.2% 20 21 Poland 469,401 9.0% 21 20 Belgium 467,779 -0.9% 22 23 Sweden 458,725 13.7% 23 27 Saudi Arabia 448,360 18.9% 24 26 Taiwan 429,845 13.9% 25 22 Wal-Mart Stores US 421,849 3.3%



Rank 2010

Rank 2009

Country/ Corporation Country of Companies GDP/Revenues (US$ million, 2010)

% Change 2009 to 2010

26 24 Norway 412,990 11.4% 27 30 Islamic Republic of Iran 407,382 12.4% 28 34 Royal Dutch Shell Netherlands 378,152 32.6% 29 25 Austria 377,382 -1.2% 30 31 Argentina 369,992 19.2% 31 33 South Africa 363,655 28.1% 32 35 Exxon Mobil US 354,674 24.6% 33 36 Thailand 318,908 20.9% 34 32 Denmark 309,866 0.3% 35 37 BP UK 308,928 25.5% 36 29 Greece 305,415 -6.7% 37 39 United Arab Emirates 302,039 11.7% 38 28 Venezuela 293,268 -10.0% 39 40 Colombia 289,433 23.6% 40 50 Sinopec Group China 273,422 45.8% 41 56 China National Petroleum China 240,192 45.1% 42 38 Finland 239,177 -0.9% 43 48 Malaysia 237,959 23.3% 44 41 Portugal 229,154 -2.4% 45 51 State Grid China 226,294 22.7% 46 43 Hong Kong SAR 224,459 7.3% 47 52 Singapore 222,699 21.5% 48 44 Toyota Motor Japan 221,760 8.6% 49 49 Egypt 218,465 15.8% 50 47 Israel 217,445 11.6%



Note: A key study was done in 1996 by Sarah Anderson and John Cavanagh of the Institute of Policy Studies which found 51 companies in the world’s top 100 global economic entities using the same approach. (See Corporate Empires, Multinational Monitor, December 1996, Volume 17, Number 12.)

50

45 44 44

42

2000 2005 2008 2009 2010

Number of companies among the Top 100 global economic entities


Key shifts in the Fortune Global 500 List • US firms still dominate with 133 companies in 2011, but this is down from 186

companies in 2001 • Chinese companies now number 61 on the 2011 list, including three of the top 10,

versus just 12 in 2001 • Over 23% (117 companies) of Global 500 firms are headquartered in rapidly

developing economies, up from 95 in 2009, and almost double the 61 RDE companies on the list in 2006



49 40 36 40 36

1

5 8 4

6

2000 2005 2008 2009 2010

US, Europe, Japan RDEs

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

entities

91 83 74 76 72

5 9

12 12 15

2000 2005 2008 2009 2010

US, Europe, Japan RDEs

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

entities


The starting point: 43,000 Transnational corporations (TNCs)

The Core: 1347 strongly

connected corporations

• About 75% of the ownership of firms in the core remained in the core • Each firm in the core had, on average, connections to 20 other firms in the core • Only 737 firms (the majority in the core) had 80% of the control over the value of all

TNCs – a control ten times bigger than what could be expected based on their wealth

Source: 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_networks


THE BOTTOM LINE

147: THE NUMBER OF CORPORATIONS THAT

CONTROL 40% OF TOTAL GLOBAL VALUE CREATION

• All are in the core • The group of 147 has almost total control over itself • Almost three-quarters of these economic “super-

entities” are financial intermediaries

Source: 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_networks


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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 security

Influence that is often greater than that of the nations, societies and communities in which large corporations operate


The role for corporates with clout: Not just as suppliers and consumers of resources or resource-based products and services, but as role models and influencers for more responsible and sustainable use of resources.

Increasing efficiency of water use: Estimated Water Footprint per US$ of Industrial Output, Selected Countries

(Liters of Water to Produce)

10-.1520-25

50

80

100

Source: The Water Footprint Network, www.waterfootprint.org

Addressing the energy challenge

• 25% of people worldwide, over 1.5 billion mainly in Africa and Asia, have no access to electricity.

• Yet, each day New York City consumes the same amount of electricity as all sub-Saharan African nations combined, excluding South Africa.

• Consumption of energy is projected to increase by a staggering 53% from 2008 to 2035 with the largest projected increase in demand in the non-OECD economies. (Source: EIA)

• The challenge: moving from excessive dependence on fossil fuel towards developing sustainable energy sources while improving energy efficiency and reducing wastage.


This presentation is adapted from the article “Corporate Clout Distributed: The Influence of the World’s Largest 100 Economic Entities,” by Tracey Keys and Thomas Malnight, first published in May 2012 on www.globaltrends.com. To access the list of the top 100 economic entities and further analysis click here. About the Authors

Tracey Keys is a Director of Strategy Dynamics Global Limited, publisher of www.globaltrends.com. She works with senior executives worldwide on complex strategy issues and to translate global trends into action today. Thomas Malnight is a professor of strategy and general management at the International Institute for Management Development (IMD), in Lausanne, Switzerland.

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corporate clout distributed 2012: the influence of the world's largest 100 economic entities

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