Risk and regulation
Capitalism has "fundamentally changed". The long-held faith in free markets appears to be at an end, and Adam Smith's "invisible hand" appears to be malfunctioning. Nearly 60% of senior business executives agree that "the current crisis has fundamentally changed capitalism". This view is supported by the experts we interviewed, many of whom suggest that the "spectre of depression", as Professor N. Craig Smith, INSEAD chair of ethics and social responsibility, puts it, will have long-lasting effects on the psychology of executives and consumers alike.
Financial decision-making in the downturn
The most important decisions revolved around short-term plans to raise cash--cost cutting, shedding staff and selling assets at the expense of long-term goals
The concept of company “stakeholder” is not new. For over two decades, companies have been thinking about, and even taking responsibility for, the concerns of a wider circle of interested groups than just management and shareholders. Traditionally, these include employees, customers and suppliers. But in recent years, a new set of “non-traditional” stakeholders has emerged, some of which are pursuing a bigger, societal or even global agenda that has forced companies to take a broader view of the impact of their operations.
The new global reality
The new global reality: how the forces of globalization are reshaping business in Latin America is an Ernst & Young report, written in co-operation with the Economist Intelligence Unit, examining the degree of globalization in Latin America. Ernst & Young selected for analysis six of the eight countries (excluding Venezuela and Ecuador) that were included in The Globalization Index created by the Economist Intelligence Unit.
Redrawing the map
Redrawing the map: Globalization and the changing world of business is an Ernst & Young report written in co-operation with the Economist Intelligence Unit.
The key survey insights are:
Enabling efficient policy implementation
Poor implementation is widespread and damaging to a large majority of companies. Faced with this challenge, 30% of organisations admit that they are at best only occasionally effective at policy change, and one-half say that they are only somewhat effective. Of government respondents, 89% have suffered some negative impact from failure in this area, including 52% who have seen their ability to deliver their mandated mission damaged. In the private sector, 81% have experienced some damage, including 41% with a reduced ability to execute strategy.
Corporate Expectations Barometer
For the first time since the second world war, global GDP is expected to shrink this year—by 1.8%,according to the Economist Intelligence Unit’s global forecast released in June 2009. Worldwide consumption is down, stockmarkets are down, trade is down and employment is down. But according to a survey conducted by the Economist Intelligence Unit, and sponsored by SAP, global business conditions are set to improve.
Getting ahead in a recession by making better decisions is an Economist Intelligence Unit report sponsored by SAS. It is the first paper in a three-part series entitled Management magnified, aimed at helping managers find ways to guide their companies more effectively through troubled times.
Management magnified: Strategies for revenue growth in an economic downturn is the second in a series of three reports written by the Economist Intelligence Unit and sponsored by SAS. The first report, Management magnified: Getting ahead in a recession by making better decisions, was published in August 2009. The final report, on sustainability, was published in November 2009.
- Sustainability and corporate performance. About one-quarter (27%) of executives surveyed rate their organisation above average in every sustainability-related category—ability to integrate initiatives into core strategy, investment in initiatives and reputation among stakeholders. Members of this “sustainability leaders” group of companies report better-than-average results in other areas as well: 35% say their financial performance is much stronger than their peers, compared with only 14% of respondents from other firms in the survey.