According to NYSE Euronext 2009 CEO report, the current US and global economic conditions would separate the best companies from great ones.

“A renewed focus on a strong balance sheet, strategic acquisitions, operational efficiency, sound management practices, as well as attracting and retaining the best workforce are the key to future growth during turbulent economic times,” the report said. The fourth annual survey of CEOs of NYSE Euronext-listed companies was conducted from February 29 to March 31 and 254 CEOs participated in the study. About 72 per cent of CEOs surveyed are based in the US while 28 per cent are from non-US companies.

Opportunity window

Meanwhile, about two-third of CEOs view BRIC (Brazil, Russia, India and China) nations as an opportunity. Pointing out that “sensible acquisitions and expansions are targeted in BRIC countries”, the report said out of the CEOs from non-US firms, nearly 8 in 10 see these nations as an opportunity. “The majority say they would maximise their opportunity in the BRICs countries by establishing or expanding local marketing and sales activity,” it noted.

However, K V Kamath of India’s largest private sector lender ICICI Bank was quoted as saying, “Global companies have to adapt to operate in markets with very high growth rates. It puts a strain on manufacturing capabilities and demand for talent.”  A majority of CEOs surveyed believe that changes in American legal and regulatory systems would have a positive impact in the competitive position of the US capital markets.
Facing tougher economic conditions, nearly half of the CEOs especially those heading financial services businesses said it would be more difficult to attract investors.

“....the proportion of CEOs saying it is more difficult to attract investors has risen to almost one out of three. Almost half (45 per cent) of the CEOs running financial services businesses are finding it more difficult to attract new investors and retain existing investors,” the report said.

Ethical practices

Regarding corporate social responsibility, 41 per cent CEOs felt the most important corporate responsibility task is ensuring all labour practices are ethical across their organisation.

Those based outside the US believed formalising corporate responsibility positions and policies to be the second most important action.

Citing Pepsico, the report said the company is not only reducing fat and calories in many of the its snacks to help address the global obesity epidemic, but also putting in place initiatives to encourage healthy and active lifestyles.

“Keeping the focus on the heart and soul of our business our products and the consumers who enjoy them will remain the key imperative for us,” Ms Nooyi was quoted as saying.