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.


Austria

2010
revenues
are bigger
than the
GDPs of

South Africa

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Greece

BP
United
is bigger Arab
than 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!

+


Revenues of the 42 companies in the Top
100 versus global GDP, 2010 (US$ trillion)
63.1

Equivalent to
11% of
7 global GDP

Revenues of companies Global GDP
Sources: IMF, World Bank, Fortune Global 500, 2011


OVER A MILLION
MORE PEOPLE THAN …BUT JUST 0.4% OF
THE COMBINED THE WORLD’S
TOTAL POPULATIONS ECONOMICALLY
OF GREECE AND ACTIVE POPULATION
QATAR…


Rank Rank Country/ Corporation Country of Companies GDP/Revenues (US$ % Change 2009 to 2010
2010 2009 million, 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%
Sources: IMF, World Bank, Fortune Global 500


Rank Rank Country/ Corporation Country of Companies GDP/Revenues (US$ % Change 2009 to 2010
2010 2009 million, 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
Number of companies among the Top 100 global was done in 1996
economic entities by Sarah Anderson
and John Cavanagh
of the Institute of
50
Policy Studies
which found 51
companies in the
world’s top 100
45 global economic
44 44 entities using the
same approach.
42
(See Corporate
Empires,
Multinational
Monitor, December
1996, Volume 17,
2000 2005 2008 2009 2010 Number 12.)



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


Number of companies from developed countries Number of companies from developed countries
and RDEs in the Top 100 global economic and RDEs in the Top 150 global economic
entities entities
1
5
9
5 4 12
8 6 12 15

49
91
40 40 83
36 36 74 76 72

2000 2005 2008 2009 2010 2000 2005 2008 2009 2010

US, Europe, Japan RDEs
US, Europe, Japan RDEs



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


This file is licensed under the Creative Commons Attribution ShareAlike 2.0 License. Author: Crispin
Semmens.


Spheres of influence
• Employment Influence
• Value creation/wealth distribution that is often
• Economic and social policies, legislation and regulation greater than
• Research and innovation that of the
• Trade nations,
societies and
• Investment communities
• Resource use and sustainability in which
• Environment large
• Role models for the future of business and society corporations
• Global challenges, e.g. water, food, energy security 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 Addressing the energy challenge
Footprint per US$ of Industrial Output, Selected Countries
(Liters of Water to Produce) • 25% of people worldwide, over 1.5 billion mainly
100 in Africa and Asia, have no access to electricity.
80 • Yet, each day New York City consumes the same
amount of electricity as all sub-Saharan African
50
nations combined, excluding South Africa.
20-25 • Consumption of energy is projected to increase
10-.15
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.
Source: The Water Footprint Network, www.waterfootprint.org


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.


Corporate Clout Distributed 2012: The Influence of the World's Largest 100 Economic Entities

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Corporate Clout Distributed 2012: The Influence of the World's Largest 100 Economic Entities