Values in the family business, in the essence of their SRC

Identifying the values and prioritizing them within the ABC of the Family Business's behavior is the first step towards Social Responsibility Code (SRC) that must be exercised. And is that not all companies handle the same values nor give them the same importance.

The thesis was proposed by the president of the National Chamber of Commerce, Services and Tourism of Tlalnepantla (Mexico), Antonio Diaz Gutierrez*, consultant in entrepreneurship and family business, who addressed the issue during a colloquium at CESA –Colegio de Estudios Superiores de Administración-. .

And although the clarity in the business strategy affects the companies growth, sooner or later some intangibles are decisive for the permanence of organizations over time.

According to Diaz Gutierrez, depending on the context and the sector in which the company is performing, it may or may not be successful. However, if the company's strategy is joined by the components of ethics, self-regulation, optimal governance, will show symptoms of exponential growth. At the core of SRC are low-cost practices, but at the same time high and positive impact.

Among the good practices that must be exercised by the business family is to define the values that must be transversal to the development of the business, hierarchize them according to their interests and, probably most importantly, know how to communicate them. In this sense, the explicit becomes relevant. Both ethical and behavioral codes are essential. The first ones are a manifesto of the values of the company. The seconds, related to the values it promotes.

Antonio Diaz Gutierrez argues that "by making some evaluations of family businesses that fail, 50 percent is generated by conflicts arising from not having clear values or going against which the business family has established".

The issue is transcendental, because the generational transition can fall into neglect in the values of the company's finances and, with it, in the particular interests of the new actors that can take the reins of the company.

You may be interested in 'Family Business Survival, also a Protocol Issue'.

Family businesses are managed with values. Part of the family enterprise and its development has to do with those things that were learned at home, but must be principles shared and lived in the organization. Over the years it is likely that some generations are not aware of the values they inherited. And since they mutate and have different priorities, the values of the founders can not be conceived as compatible with the reality that the company is experiencing at any given time. Hence the key issues are communication and intergenerational teamwork.

Companies that implement social responsibility tools, that is, management systems, transcend in time. And, although it is not a certifiable standard (ISO 26000), it does comply with the processes of a certifiable management system that helps to perfect the acting of the companies.

* Invited by CESA Research Directorate, led by teachers Alexander Guzmáa and Ma. Andrea Trujillo.