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Global CEOs adopting ‘back to basics’ approach

NEW YORK: Amid the credit crisis and economic slowdown, businesses are adopting a ‘back to basics’ approach to cope with the challenging economy, shows a survey of chief executives of companies listed on the New York Stock Exchange.

According to the NYSE Euronext 2009 CEO report, the current U.S. 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 the CEOs surveyed are based in the U.S. while 28 per cent are from non-U.S. companies.

Meanwhile, about two-thirds of the 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-U.S. firms, nearly 8 in 10 see these nations as an opportunity. “The majority say they would maximise their opportunity in the BRIC countries by establishing or expanding local marketing and sales activity,” it noted.

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 U.S. capital markets.

“U.S.-based CEOs are more optimistic about the impact these will have, compared to non-US-based CEOs. US-based CEOs are less likely to believe a convergence of international accounting standards would have the same positive impact,” the survey said.

Facing tougher economic conditions, nearly half of the CEOs especially those heading financial services businesses said it would be more difficult to attract investors.

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

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

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