Content in this publication is not intended to answer specific questions or suggest suitability of action in a particular case. For additional information on the issues discussed, consult a Grant Thornton LLP client service partner or another qualified professional.

© 2014 Grant Thornton LLP | All rights reserved | U.S. member firm of Grant Thornton International Ltd

SUSTAINABILITY DRIVERS: DIFFERENT ECONOMIES, DIFFERENT PRIORITIES

About the IBR surveyThe Grant Thornton International Business Report (IBR) is the world’s leading mid market business survey, interviewing approximately 2,500 senior executives every quarter from listed and privately held companies all over the world. Launched in 1992 in nine European countries, the report now surveys more than 10,000 businesses leaders in over 30 economies on an annual basis, providing insights on the economic and commercial issues affecting companies globally.

The data in this infographic is drawn from more than 2,500 interviews with CEOs, managing directors, chairmen and other senior decision-makers from all industry sectors in mid market businesses in 34 economies conducted in May 2014. The U.S. sample was 300 companies. The definition of mid market varies across the world: In China, we interview businesses with 100–1,000 employees; in the United States, those with US$20M to US$2B in annual revenues.

How companies act on corporate social responsibility

Business as usual doesn’t cut it anymore for many companies around the world. They

are becoming environmentally and socially responsible citizens, and demand the same

from their vendors. Data from the Grant Thornton International Business Report reveals

what’s driving this change and how it’s playing out across the globe. Based on more

than 2,500 interviews with business leaders, this infographic shows how the U.S. and

33 other countries stack up in their race for claiming responsible corporate citizenship.

Differences emerge for the least popular initiatives:

U.S. Global

Donating to community causes/charities 93% 68%

Participating in community/charity activities 93% 65%

Improving energy efficiency/ waste management 90% 65%

The future of responsible business is here

Recruitment/ retention of staff

Public attitude/building brand

Client/customer demand

Cost management Tax relief Government pressure

63% 63% 62%

57% 56% 52%

Top drivers in China: People first, cost management second

CSR ACTIVITIES: CHARITIES TOP THE LIST

No matter the geographical location, businesses share the same top 3 CSR priorities:

U.S. 16%Due diligence on impact of business on human rights

NGO partnership to address business issues Compared to 2011, U.S. companies have had a

change of heart about these activities:

Calculating the carbon footprint +26 percentage points

Sourcing from local, ethical trade or organic suppliers -17

Changing offering to reduce social impact -13

Global 20%

CSR REPORTING: LITTLE CONSENSUS FEEDS INTO LACK OF A GLOBAL FRAMEWORK

1 in 4 U.S. companies report on sustainability and/or CSR activities, compared to 1 in 3 globally.

Merging nonfinancial (i.e., sustainability, CSR) and financial reporting appeals more to international companies than U.S. businesses.

There is little hope for more external reporting in the U.S.

plan to disclose their CSR programs in the next 5 years.

89%of companies in India approve of merging the two reports, compared to 51% in the U.S.

Case in point:

Top 5 reasons why U.S. companies implement corporate social responsibility (CSR) practices:

59%

63%

Public attitude

It’s the right thing to do

77+23+D

77%

Cost management

47% Talent/recruiting retention

46% Customer demand

“I’ve partnered with charities to address a business issue.”

Eastern Europe and Baltic countries

Africa and North America

21%

Foreign businesses are more likely than U.S. firms to cite

customer demand +18 percentage points

saving the planet +15

public pressure +13

tax relief +12

talent recruiting +11

when considering sustainable initiatives.

France, Sweden and Thailand

Japan, Poland and Mexico

“I’ll implement more sustainable programs because it’s the right thing to do.”