THE PERCEIVED VALUE OF CORPORATION$ BY $PECIFIC NATION$ THROUGHOUT THE WORLD

A SUMMARY OF FINDINGS & SOME INTERPRETATIONS

Given the globe’s 15 biggest economies and SAFrica, we found that:

  • Developing nations rated the value of corporations higher than Developed nations did (probably b/c they have economic greater need, hope and less synacism)
  • Generally, DOMESTICS received more support from their own Developed Developing nations however, were more supportive of MULTINATIONALS (probably b/c they’re in need of help and their own DOMESTICS are still evolving.)
  • European Corps had higher favorability ratings across the board than did US or Chinese Corps. The US gave its own corps the highest rating while China (interestingly enough) gave Europe’s corps its highest
  • Generally, the Developing nations saw more CSR in recent yrs than did the Developed (Perhaps, it was b/c they need more help and are hopeful of getting it)

While each country has a story to tell about its public sector vs its private sector perhaps, their more important stories are how their peoples generally perceive the corporate world and the world of its Domestic vs Multinational corps. We view the globe as bifurcated into Developed & Developing economies/nations. (The diff between Developed & Developing is based on GDP per capita with the World GDP per capita being $13,100 meaning nations above are likely Developed  and nations below are Developing. RUS & MEX therefore are pivotal “tweeners” with a strong case to be made that both are Developing nations) We believe that each Developed nation must protect & prosper its DOMESTIC$ vs the must need of Developing nations to grow themselves thx to MULTINATIONAL$. T-1 represents data in 4 perceptual areas given the world’s biggest economies: (1) The value of corps; (2) The support given to DOMESTICS vs MULTINATIONALS; (3) the favorability of US, Chinese and European corps; and (4) the growth of global Corp Social Responsibility. We analyzed another slice of the CNBCBurson Marsteller’s Global Perception Indicator (CNBC-BM) released 1wk ago. While the study provided population (and biz execs) responses for 25 nations, we selected the countries with the largest GDPs & added SAFrica so that its continent would be represented. (T-1 orders CNBC data according to each nation’s GDP size w/o regard to being Developed or Developing and w/o regard to any government data. Our GDP & GDP per capita source is the CIAWorldFactBk, 2013)


Corporate Influence is Good & Corporations are a Source of Hope: Clearly, Developing nations who by definition had the greatest NEED for growth showed the greatest favorability towards the world’s corporations. It is obvious to us that they understand that DEVELOPMENT comes from the private sector rather than the public sector (See T-1’s Corp’s Influence is “Good”, Corps are source of “Hope” and their Avg response %s. These are rows 5,6 & 7 in T-1 with row 7 being boxed b/c it’s an avg% of Corp’s influence as being “Good” & a source of “Hope”). The point here, is that there appears to be a common view in Developing countries that the private sector is the GO TO sector!

Support DOMESTIC Corps ONLY or Support MULTI-NAT’L Corps ONLY: The results of which corps should be supported (DOMESTICS or MULTI-NATIONALS) were fascinating. Of the 16 nations in our table, China (a Developing nation) showed the greatest proclivity in supporting its own corps (48%) while the other 2 biggest DOMESTIC corp supporters were VERY BIG Developed economies (JPN & SKR) at 42% & 41%, respectively. The USA was next at a 35% support level for its DOMESTICS followed by GER & FRA at 31%.  Of the 5 nations who showed the least proclivity towards supporting their own DOMESTIC corps 3 were Developing (SAFrica with 17% support, MEX, 24% & BRZ 25% and 2 were Developed nations who showed weak support for their DOMESTICS.  They were ESP with 17% support and UK with 20%) There was a tendency for Developeds to support their DOMESTICS over MULTI-NATIONALS.  (While this relationship wasn’t perfect, it was nonetheless easily a distinguishing feature b/t Developeds & Developings.)

As for the support of MULTINATIONALS, Developing nations showed the greatest support for them b/c they must depend on them for both their economic needs & growth. Indeed, India (at 36%), Rep of SAFrica at (27%), China at (26%) and MEX at (25%) had the greatest support for MULTI-NATIONALS while the Developed economies such as GER, UK, USA and CAN had the lowest support of MULTINATIONAL corps at 6%, 7%, 8%, 9%, respectively. MULTINATIONALS were much more strongly supported by Developing (vs Developed) nations.

Specific Favorability Towards USA, China & Europe’s Corps: Generally speaking each of the aforementioned nations or combination of nations (as Europe) gave its own corps the BEST or VERY VERY FAVORABLE ratings. USA respondents gave its own corps the highest support of any nation with 82% favorable ratings. WOW! Chinese respondents gave its own DOMESTICS a 65% favorability rating and Europe an amazing 80%. WOW! India gave Europe’s corps a 68%, rating the USA at 64% rating but it BLASTED its Asian brother and Developing nation competitor, China, with a meager 31%. WOW! Various European countries (ESP, FRN, ITA, & GER gave higher “support” ratings to “Europe’s Corps” than they did to the USA or China corporations.) Again, we say NO NEWS here!  Expectedly as a general principle, the USA, China & Europe gave its own corps the highest favorability ratings with the exceptions noted above and below.

There were still a few other favorability rating surprises:

  • While Japan gave European corps 60%, it ONLY gave China, 48% & the USA, 49%. (Apparently JPN is better attached to Europe and/or sees it as less of a competitive threat than China or the US).
  • Europe’s corps received the highest favorability rating from 15 of the tabled 16 ONLY the USA rated it #2 (b/c it rated itself, higher.)

More CSR in Recent Years: Of the 15 nations with the largest GDPs in the world, Brazil (a Developing nation) had the highest response 79% regarding “corps are becoming more socially responsible in recent yrs”. The next highest CSR responses came from India (77%), Mexico (72%), Indonesia (70%), China (67%) and SAFrica (67%); ALL are Developing nations. The lowest responses regarding seeing “more CSR in recent yrs” came from GER (33%), FRA (34%), SKR (38%), UK (39%), RUS (40%) and the USA (42%). ALL of the aforementioned nations (except perhaps RUS) are Developed nations. In our highest lowest% discussion we’ve accounted for 12 of the tabled 16 nations. To finish T-1’s nations we must still account for ESP (57%), JPN (57%), ITA (50%) and CAN (47%). Their scores are b/t the lowest scores from the Developed nations (which ranged from 33%to 42%) and the higher scores from the Developing nations (ranging from 67% to 79%) Let’s just say these 4 “tweeners” are “Doubting Thomas” nations.  In sum Developings saw more CSR in recent yrs and Developed saw less.

PLEASE NOTE: While the CNBC-BM survey included 25 nations, we did NOT include responses from Columbia, Netherlands, Poland, Malaysia, Singapore, Hong Kong, Turkey, United Arab Emirates and Australia b/c we selectively chose the World’s 15 biggest economies plus SAFrica as a representative of the African continent.

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About bernacmd

For over 24 years, University of Detroit Mercy Marketing Professor Michael Bernacchi, Ph.D., J.D, has produced "uNDER tHE mIKE-rOSCOPE", a newsletter discussing current "marketing and advertising¹s bends, trends & ends." A well-know fixture in Detroit and national media, UDM's marketing guru has made several appearances on CNN's "Talk Back Live," the Voice of America worldwide radio network (VOA), ABC, CBS, NBC, MSNBC and on the pages of Sports Illustrated, Time, TV Guide, the New York Times, USA Today, the Wall Street Journal and the Washington Post, to name a few. At University of Detroit Mercy, he has taught courses in Marketing Management, Consumer Behavior, Marketing Communications, Research and Corporate Social Responsibility and Sports and Entertainment Marketing. Michael Bernacchi can be reached at 313-993-1116 or bernacmd@udmercy.edu. Please appropriately attribute the following for their work on uNDER tHE mIKE-rOSCOPE: Yen Ju Lee Robert Rouse Vidhyasagar Natarajan Eric Baumgardner & Ian Young
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