New York: The majority of chief executive officers of leading companies believe the global trade environment is having a favourable impact on their businesses which is going to continue in the near future, a New York Stock Exchange Survey shows.
The collective responses from 240 CEOs of NYSE-listed companies suggest that an organization’s ability to conduct business globally will be vital for its success in 2008 and beyond.
The survey conducted by Opinion Research Corporation on behalf of NYSE Euronext showed that as many as 48% of respondents said that the global trade was having a favourable effect on their organization compared with 38% last year.
The survey results indicate that most CEOs view emerging markets as an opportunity rather than a threat. Companies based outside the United States are even more positive about emerging markets than those based in the US.
The NYSE CEO Report 2008 provides insight into the evolving priorities of the CEOs of our listed companies, said John A. Thain, CEO and Director of NYSE Euronext.
While the US continues to be seen as the most crucial market for doing business, China and Western Europe are also regarded as important regions. In addition, the emerging economies of India and Eastern Europe are now gaining importance as possible locations to set up operations, the survey shows.
Moving operations offshore is also being cited as a successful business strategy with 47% of NYSE CEOs indicating that their company has moved operations offshore at some time.
”Global expansion is no longer just the domain of a few forward thinking CEOs...It is clear from this year’s survey that globalization is now part of the fabric of decisions concerning market extension, operations, growth and profit,” said Jeff Resnick, President of Opinion Research USA.
The NYSE CEO report also illustrates that 88% CEOs believe changes to the American legal system to lower litigation risks would increase the competitiveness of US capital markets.
“The questions we get [from regulatory bodies] reveal the lack of knowledge about the energy industry, its enormous scale and the long-term nature of our business,” says Rex Tillerson, CEO of ExxonMobil Corp.
“Without understanding our business fundamentals, policy-makers might make decisions today that can have long-term, negative consequences for society,” he said.
The US-based CEOs, the survey shows, also demonstrate great optimism about the US economy, more so than the general US adult population. Only 37% of American adults versus 84% of CEOs would rate current US economic conditions as excellent or good.
“The integration of the global economy, advanced with respect for local interests and cultures, remains the most effective means to lift people out of poverty, advance prosperity and ensure the sustainability of business,” says Neville Isdell, Chairman and CEO of The Coca-Cola Company.
The report also assesses CEO views on topics ranging from growth opportunities and risks to technology, regulatory compliance, globalization, human capital and reputation management.