Good Stuff Happens in 1:1 Meetings: Why you need them and how to do them well
Chatham House Presentation 25112009
1. Dr. René Kim, Triple Value Consulting Prof. Ethan B. Kapstein, INSEAD Chatham House London, 25 November 2009 The Impact of Multinationals on Development
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4. Why conduct an economic impact study? " By better understanding our socio-economic impact, we can maximise our ability to make a difference through stimulating economic development. “ CEO Graham Mackay, SABMiller "The report shows the unmistakable benefits that SABMiller's investment in Uganda has brought both to the company and to our country." Hope Mwesigye, Uganda's Minister of Agriculture, Animal Industry, Fisheries Our economic impact research combines corporate financial statements with official national accounts: this produces replicable data that cannot be “spun” by the firms. It enables stakeholders to focus on some of the most pressing socio-economic issues facing an economy by bringing the “multipliers” (e.g. job creation) associated with given investments into focus.
5. Example of output: Breakdown of Value Added components 40 37 42 72 Households income 47 68 Tax income 119 Profits & savings Total Induced impact (household consumption; Round 3 ) 187 Indirect impact (supplier’s suppliers; Round 2 ) Multinational + suppliers + traders ( Round 0 and 1 ) 23
6. Example of output: Direct, Indirect and Induced Jobs Direct suppliers Multinational Trade Indirect suppliers Indirect trade Households induced impact 415 637 Total 65 % 14% 21 % Jobs (x 1,000) 91 Induced impact (household consumption; Round 3 ) Indirect impact (supplier’s suppliers; Round 2 ) Multinational + suppliers + traders ( Round 0 and 1 )
7. “ What if” scenarios can be helpful in stakeholder discussions Current Economic impact of Multinational 1. Increase local sourcing 2. Import only company 3. Changes in tax regime 4. Other scenarios Impact on jobs, household income, tax income, savings Possible Scenarios Current situation
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9. Economic Impact studies have not gone unnoticed Understanding and communicating Economic Impact is a next step after the “happy face” (but hardly read) CSR reports
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