Globalisation magic & the risks in supply chains
Perception now determines much of the value of a company. According to the 2015 UK Reputation Dividend Report 27.4% (or £620bn) of the total value of the largest UK businesses (FTSE 350) was attributable to 'reputation assets'. Corporate responsibility and environmental credentials alone contributed £22bn to that total, a proportion which is rising year-on-year. Meanwhile, an analysis of a similar group of companies in the US (S&P 500) over the last 50 years shows that the contribution from intangible assets to corporate balance sheets has increased from roughly 20%, to nearly 80%.