1、Manual on the Classification of Business FunctionsDepartment of Economic and Social AffairsThe Department of Economic and Social Affairs of the United Nations is a vital inter-face between global policies in the economic,social and environmental spheres and national action.The Department works in th
2、ree main interlinked areas:(i)it compiles,generates and analyses a wide range of economic,social and environmental data and information on which United Nations Member States draw to review common prob-lems and to take stock of policy options;(ii)it facilitates the negotiations of Member States in ma
3、ny intergovernmental bodies on joint courses of action to address ongoing or emerging global challenges;and(iii)it advises interested Governments on the ways and means of translating policy frameworks developed in United Nations conferences and summits into programmes at the country level and,throug
4、h technical assistance,helps build national capacities.Note The designations employed and the presentation of the material in the present publica-tion do not imply the expression of any opinion whatsoever on the part of the United Nations concerning the legal status of any country or of its authorit
5、ies or the delimi-tations of its frontiers.The term“country”as used in this publication also refers,as appropriate,to territories or areas.The designations of country groups in the publica-tion are intended solely for statistical or analytical convenience and do not necessarily express a judgment ab
6、out the stage reached by a particular country,territory or area in the development process.Mention of the names of firms and commercial products does not imply the endorsement of the United Nations.The symbols of United Nations documents are composed of capital letters and numbers.Mention of such a
7、symbol indicates a reference to a United Nations document.ST/ESA/STAT/SER.F/125United Nations publicationPDF ISBN:978-92-1-002476-1Copyright United Nations 2023All rights reservediiiPreface and acknowledgementsThe Manual on the Classification of Business Functions was developed to provide a common f
8、ramework for measuring how enterprises organize their production and supporting functions and to improve understanding of globalization,global value chains and sourcing patterns.The classification provides an internationally agreed set of categories to collect and report statistics on the business f
9、unctions of enterprises and,therefore,a common framework for international comparison.The classification of business functions goes beyond the traditional product or activity breakdown and provides more relevant categories for describing and measuring how companies organize their production and supp
10、orting functions.Such classification is particularly useful in measuring domestic and international sourcing and the distri-bution of work in global value chains.Work on the classification started with the recommendation adopted by the Expert Group on International Statistical Classifications of the
11、 United Nations(renamed the“United Nations Committee of Experts on International Statistical Classifications”in March 2021)at its meeting held from 18 to 20 May 2011,in New York,to develop guid-ance for identifying core and support business functions in relation to international outsourcing by enter
12、prises.A technical subgroup was established to review existing work carried out in Europe,Canada and the United States of America,and to develop and test the classification of business functions.Eurostat took the lead in building and testing a potential classification in European Union countries thr
13、ough the Interna-tional Sourcing/Global Value Chains Survey.In November 2020,the Technical Sub-group met in New York to review country experiences in the use of the classification.The Subgroup agreed that there was a need to elevate the classification of business functions to the level of an interna
14、tional statistical classification in order to harmonize efforts in measuring sourcing.A global consultation on the draft manual was carried out from August to October 2020.On the basis of the outcome of the consultation,and upon recommendation of the Committee of Experts on International Statistical
15、 Classifications,the classification of business functions was submitted and endorsed by the Statistical Commission at its fifty-third session,in March 2022,as an international statistical classification.The following experts were members of the Technical Subgroup and contributed to the development o
16、f the Manual:Franklin Assoumou Ndong(Canada),Peter Begh Nielsen(Denmark),Amitava Saha(India),Stefano Menghinello(Italy),Fred Demollin and Bart Loog(Netherlands),Andrew Hancock(New Zealand),Severa Belista De Costo(Philippines),Paula Bordelo(Portugal),Fay Dorsett(United States),Celestino Giron(Europea
17、n Central Bank),Axel Behrens,Nikola Sunjka and Georgios Papadopoulos(Eurostat),Nadim Ahmad(Organisation for Economic Co-opera-tion and Development),Barbara DAndrea(World Trade Organization),Timothy Sturgeon and Sharon P.Brown(independent experts)and Ilaria Di Matteo,Markie Muryawan,Ronald Jansen,Ivo
18、 Havinga,Nancy Snyder and Zhiyuan Qian(Statistics Division).The project was carried out under the overall supervision of Mr.Havinga.ivManual on the Classification of Business FunctionsInvaluable inputs were received from various national statistical offices in 2020 during the global consultation,as
19、well as from regional workshops and meetings with inter-national and regional agencies,such as the Eurostat Global Value Chains Task Force and various national statistical offices.Special acknowledgements go to Messrs.Sturgeon and Nielsen,who were active throughout the initial proposal and revision
20、process,and to Messrs.Sunjka and Papadopoulos,for leading the substantive development of the present classification and its implementation in the global value chain surveys in Europe.v Abbreviations and acronymsCPA Statistical Classification of Products by ActivityCPC Central Product ClassificationG
21、VC global value chainICT information and communications technologyIS international sourcingISCO International Standard Classification of OccupationsISIC International Standard Industrial Classification of All Economic ActivitiesNACE Statistical Classification of Economic Activities in the European C
22、ommunityNAICS North American Industry Classification SystemviiContentsPreface and acknowledgements.iiiAbbreviations and acronyms.vI.Introduction.1A.Introduction to the classification of business functions.1B.Historical background.1C.Structure of the Manual.2II.Underlying principles of the classifica
23、tion.3A.Purpose and nature of the classification.3B.Scope of the classification.3C.Statistical units,observational units and population.3D.Differences from other types of classification.4E.Implementation plan.4III.Concept of business functions and their use in statistical surveys.5A.Concept of busin
24、ess functions.5B.Adapting the concept of business functions for use in statistical surveys.6C.Using the classification of business functions to define patterns of industrial organization and sourcing location.7D.Core versus support business functions.9E.Analytical uses.11IV.Classification of busines
25、s functions.13A.Distinction between core and support functions.13B.Methods for identifying the core business function.16V.Concluding comments.19References.21Glossary.23Annex Classifications of business functions used in prior statistical surveys.25Use of business functions in surveys.25Business func
26、tions lists.25pageTables 1 Generic survey question on business function sourcing by organization and location.9 2 Core and support business functions.10 3 Core and support business functions comparison.11 4 Classification of business functions.14viiiManual on the Classification of Business Functions
27、pageFigures 1 Organization and location:four sourcing options for business functions.8 2 Business function identification flow chart.17 5 Approaches for identifying core business function:employment or turnover.16 A1 Examples of classification of business functions used in statistical surveys 271Cha
28、pter I IntroductionA.Introduction to the classification of business functions1.Economic policymaking requires high-quality statistics on how and where enterprises1 are sourcing specific business functions.2 This new demand stems from the mainstreaming of domestic and international sourcing3 strategi
29、es by enterprises across size,industry classifications and economic territory.It cannot be assumed that enterprises will carry out all or even most business functions entirely within their organizations and their domestic economy.Furthermore,organizational and geographical fragmentation in global va
30、lue chains4 is evident in the main revenue-producing activity of enterprises and across various supporting or ancillary business activities,such as research and development,information and communications tech-nology(ICT)services,customer support,and different management and administra-tive activitie
31、s.A measurement framework based on business functions is required to capture enterprise-level information on those arrangements.2.The classification of business functions is intended for use in the production of business statistics,building on experiences from several recent surveys in Europe,Canada
32、,the United States and India.The primary use of business function statistics is to examine the details of international sourcing.However,it could also be applied to domestic sourcing.3.International sourcing statistics can help statisticians and policymakers to measure and monitor organizational and
33、 spatial patterns in national,regional and global value chains and allow for the effects of those patterns on employment,wages,innovation,skills,firm survival and turnover to be measured.In domestic sourcing,classifying business functions helps to analyse the dynamics of business function specializa
34、tion.The classification of business functions is applicable for both developed and developing countries to measure the impact of both domestic and international sourcing in their national economies.However,in practice,its imple-mentation has focused more on international sourcing than domestic sourc
35、ing.B.Historical background4.In 2011,the Statistics Division submitted to the Expert Group on International Statistical Classifications of the United Nations the proposal to develop an interna-tional classification of business functions based on the experiences of selected coun-tries and Eurostat in
36、 the measurement of the phenomenon of international sourcing.5.At its meeting in May 2011,in New York,the Expert Group on International Statistical Classifications agreed that guidance for identifying core business functions and support functions in relation to their international sourcing should be
37、 developed.It recognized that global sourcing had high policy relevance and that further work was needed to improve its measurement by developing a common framework and 1 An enterprise may be a cor-poration,a quasi-corporation,a non-profit institution or an unincorporated enterprise(System of Nation
38、al Accounts 2008).2 A business function is a group-ing of common tasks that enterprises must carry out on a regular basis,either internally or externally,to bring goods or services to market.3 Total or partial movement of business functions by an enter-prise to another enterprise,either within the d
39、omestic market or across borders.4 The sequence of all functional activities required in the pro-cess of value creation involving more than one country.2Manual on the Classification of Business Functionsguidelines.The Expert Group therefore suggested to create a subgroup to discuss the need for a st
40、andard classification of business functions to replicate and compare the results of such studies internationally.Such classification would go beyond the tradi-tional product or activity breakdown(the Central Product Classification(CPC)or the International Standard Industrial Classification of All Ec
41、onomic Activities(ISIC)and provide more relevant categories to study how companies structured their opera-tions.It was recognized that such classification would be essential in the measure-ment of outsourcing5 and the distribution of work in global value chains and relating business functions to int
42、ernational trade flows.6.At its forty-third session,in February 2012,the Statistical Commission con-curred with the aforementioned conclusions of the Expert Group on International Statistical Classifications.As a result,a technical subgroup on the classification of business functions was created the
43、 same year.In addition,experimental work was carried out in Europe,Canada and the United States to develop and test a classifica-tion of business functions.In particular,Eurostat took the lead in building and testing the classification in European Union countries through the International Sourcing/G
44、lobal Value Chains Survey.On the basis of the experience gained by Eurostat,a draft classification of business functions was developed.Furthermore,the terms of reference of the technical subgroup were updated in October 2020 in the light of the work carried out since 2012.7.The Technical Subgroup on
45、 the Classification of Business Functions met in November 2020 to review the draft classification.The Subgroup agreed that there was a need to elevate the classification of business functions to the level of an international statistical classification in order to harmonize efforts in measuring sourc
46、ing.8.The present Manual on the Classification of Business Functions reflects the com-ments by the Technical Subgroup and was prepared for global consultation in order to seek endorsement by the United Nations Committee of Experts on International Statistical Classifications and the Statistical Comm
47、ission in 2022.C.Structure of the Manual9.The Manual is organized as follows.Chapter I contains the introduction and chapterII covers the underlying principles of the classification of business functions.The concept of business functions and their use in statistical surveys are described in chapter
48、III.A critical distinction is made between core and support functions,and some of the policy issues addressed by international sourcing statistics are identified.Prior uses of classifications of business functions in statistical surveys are also exam-ined.Chapter IV contains a description of the cla
49、ssification of business functions,which comprises three levels of disaggregation.Lastly,chapter V contains the con-cluding comments and lays out the way forward.Supplements,submitted as separate Excel files,provide correspondences between the proposed classification of business functions and the Sta
50、tistical Classification of Products by Activity(CPA),the Interna-tional Standard Classification of Occupations(ISCO),the Statistical Classification of Economic Activities in the European Community(NACE),ISIC and CPC.5 Total or partial movement of business functions by an enter-prise to another enter