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 THE TRANSATLANTIC BUSINESS VERDICT?:
UNITY MAY ONLY BE SKIN DEEP ON
CORPORATE GOVERNANCE

NEW YORK and LONDON

According to a recent survey by BritishAmerican Business Inc (BritishAmerican Business), the leading transatlantic business organisation, the bottom line drives Americans while a sense of “doing good” motivates Brits on corporate social responsibility. This survey logged over 300 responses, evenly distributed between UK and US citizens from BritishAmerican Business’s membership, representing some of the largest transatlantic corporations and covering issues from corporate governance to the Euro.

The survey, done in conjunction with the strategic communications company, Peppercom, demonstrates that while the transatlantic business community apparently agrees on many issues, there are sharp differences underlying some of those opinions.

Key Findings:

1. The bottom line drives Americans while a sense of “doing good” motivates Brits on corporate social responsibility;
2. Despite scandals, American companies are still not prepared for potential exposures to vulnerability;
3. Americans convinced UK business will also face scandals;
4. Media culpability in corporate scandal? Americans say “Yes”, Brits not convinced;
5. Both sides still undecided on the Euro, but concede UK will join.

1. The bottom line drives Americans while sense of “doing good” motivates Brits on corporate social responsibility

Study findings uncovered new evidence that the bottom line is still the driving force behind US business executives. Specifically, when Americans were asked what the main business benefit of being a responsible corporate citizen is, their number one response “improving brand image”, and a full third replied “increase sales”.

While agreeing on the top issues, British counterparts valued them in a different order, listing the overall “license to operate” as their number one concern and sales fell to a poor seventh place.

Overwhelmingly, both sides agreed that “ensuring trustworthy financial reporting”, “business ethics”, and “ensuring good governance” are most important for their company in this area with 59.5%, 57.4% and 52% respectively.

“It’s interesting to note how our sampling confirms a number of preconceived perceptions of what is important to American and British business executives, said Alison Holmes, Managing Director of BritishAmerican Business, Inc. “Clearly, transparency in reporting financial numbers is the most relevant and important benefit to almost anyone dealing with the public markets these days.”

2. Despite scandals, American companies are still not prepared for potential exposures to vulnerability

The study findings clearly demonstrate that companies aren’t taking steps to ensure protection and preparedness should a financial crisis occur. Specifically, when asked whether any company can be confident that it has protected its financial stability, almost 62% of total respondents said “No”.

A periodic meeting with senior management is currently the most prevalent step taken to ensure corporate integrity and preparedness for potential exposure (57%). Only 27% of the overall respondents claim their corporations are conducting any research to determine vulnerabilities and only 16% have conducted workshops to simulate real crisis scenarios. Nearly a fifth of respondents believe their companies have taken no steps at all.

“The fact that one fifth of these senior, seasoned executives believe that their respective companies have done nothing to prepare themselves for any type of financial crisis is shocking,” said Edward Moed, managing partner of Peppercom. “Following the devastation that these financial scandals have created in the US marketplace, you would think most companies would be really digging deep to understand what vulnerabilities exist and then prepare as effectively as possible through planning and crisis simulation exercises,” he added.

3. Americans convinced UK business will also face scandals

A full 60% of US respondents believe that the UK will soon face similar scandals, while 53% of UK respondents do not believe that to be the case.

4. Media culpability in corporate scandal? Americans say “Yes”, Brits not convinced

US respondents have a much more negative outlook on how the media has reported the wave of recent financial scandals. Overall, a combined 70% of US respondents reported that the media has either blown a few scandals out of proportion in the general business environment or unduly damaged the market reputation of all public companies. Conversely, 59% of British respondents felt that the media created a place for debate on what proper corporate governance should be and 25% offered that they believe the media has been balanced and objective in uncovering important issues of corporate governance.

5. Both sides still undecided on the Euro, but concede UK will join

This survey also examined BritishAmerican Business members’ thoughts on the business ramifications of the UK joining the Euro. While all respondents overwhelmingly felt that the Euro was inevitable (82.5%) there was still a great deal of indecision as to how the Euro related to their business.

Respondents were almost evenly divided on the benefits to their own company of the Euro, (26% agreed and 27% disagreed) but when asked whether or not it would make it easier for their company to compete in the Euro zone the percentage began to shift (33% agreed and 22% disagreed). Finally, when asked specifically about the benefit to companies with a UK presence the respondents firmly agreed the Euro would be beneficial (43% agreed and 26% disagreed).

About BritishAmerican Business Inc

BritishAmerican Business Inc of New York and London (BritishAmerican Business) is the leading transatlantic business organisation, dedicated to helping its 1,000 member companies build and expand their international business.

BritishAmerican Business provides its members directly with a range of targeted business services focused on business development, business intelligence and networking, and with access to broader business networks in more than 60 other major cities throughout North America and Europe.

BritishAmerican Business incorporates the British-American Chamber of Commerce (New York/London) and the American Chamber of Commerce (UK), which merged in September 2000. Visit www.BritishAmerican Businessnc.org

About Peppercom

Peppercom, Inc. is an award-winning, strategic communications firm based in New York, San Francisco and London. In addition to providing innovative public relations services, Peppercom is known for its Sales PositioningSM and proprietary crisis management program CrisisRxSM, as well as its pioneering role in the CyberCrisisNetworkSM. Information about the agency and its unique service offerings may be found at www.peppercom.com.

Download a copy of BritishAmerican Business/Peppercom Key Findings (PDF) Get Acrobat Reader (Free)