On the other hand, increasingly integrated and competitive markets, on the one hand, and an increasingly strict public scrutiny of corporations ‘corporate governments, make the owners’ challenge of generating value permanently and sustainably even more evident in the time.
And in this process there are three variables or factors whose management is critical so that the creation of value can be sustained in the long term, factors whose combination will depend on the type of industry or business in which each company participates.
Firstly, its relationship with the environment. Beyond complying with the emission standards law or other environmental regulations, it also has to do with energy efficiency, innovation, productivity and competitiveness.
Because, for example, if a company has predatory environmental practices of some resource, it will be exposed to a risk of supply of raw material, will have to pay more for that input and lose competitiveness. They are elements of risk that are going to be reflected in their economic and financial performance, their margins of profitability will be reduced and the price of their shares and the debt they deal in the securities markets will be affected as it is not being managed with a Sustainable business strategy that adequately identifies the risks of your business and manages them.
Second, there is the social variable, which has to do with how the company behaves not only with its external stakeholders, but also with the internal ones. Because if the idea of long-term value for the business is well established at the heart of the organization, it will permeate its different levels by transforming its culture. This will be reflected in a better economic performance, less turnover of workers, more committed employees with the company, more productive, better paid and more satisfied.
Finally, third is the pillar of governance or corporate governance, which reveals its board structures, the competencies and independence of its members, the diversity that exists within it and the ability to dedicate real time and quality to be part Of this government.
This subject is arguably one of the most controversial in our country, since the standards of Chile are weak. There is no limit to the number of directories to which the same person may belong. And, as indeed happens, if the same person is part of 9 directories, in practice it is impossible to make quality contributions to the task and demanding responsibility of being director. The same must be said in such a way as to compensate the chief executives of the companies and the existence of bonus malus policies.
Managing a company is a much more complex effort than manipulating an Excel spreadsheet, it is the combination of efforts of many people and the interaction of a series of variables where the government of a company must coordinate everything, being able to anticipate Situations of risk and contingency and correctly reading what your customers are demanding and also the promise of value that is offering them.
Juan Pablo Bórquez Y.
BY I BórquezYunge Advisors