Family entrepreneurs claim their leadership to build a better society
His Majesty the King inaugurated the XXIV National Congress of Family Business which, organized by the Family Business Institute (IEF) with the collaboration of the Navarra Family Business Development Association (Adefan) and sponsored by Banco Santander and KPMG, brings together nearly 500 family entrepreneurs from all over Spain in Pamplona, under the motto “We work for a better society”.
The opening ceremony of the Congress was also attended by the President of the Regional Community of Navarra, María Chivite, the Minister of Industry, Reyes Maroto, and the President of the IEF, Marc Puig, who in his speech vindicated the work done by family businesses during the pandemic, demonstrated the commitment of these companies to spearhead the social and economic transformation that our country must face and has shown the pride in the work, perseverance and leadership that characterizes the daily lives of Spanish family entrepreneurs.
Puig recalled that the slogan of the Congress, “We work for a better society”, summarizes in itself the nature of family businesses, which are characterized “by sharing a series of essential values: long-term vision, desire for continuity across generations, commitment to society and local roots”.
The president of the IEF explained how family businesses work for a better society: leading the transformation effort required by the fight against climate change, working from within their own companies for equality, non-discrimination and social cohesion, and creating quality employment. “We are well aware of the importance that employment has for prosperity to reach everyone. We are going to strive to continue creating quality jobs and we ask that they allow us to do so, that they do not give us worse conditions than those of our neighboring countries with which we compete,” he said.
The president of the IEF, Marc Puig, has advocated an alliance with public authorities that allows companies to grow and consolidate, while asking that such growth should not be hindered and that Spanish companies continue to have the same conditions as those of other European countries. This was stated in his closing speech at the XXIV National Congress of Family Business, which brought together nearly 500 family entrepreneurs from all over Spain in Pamplona for two days.
Social and environmental challenges
For Puig, the challenges of the Spanish economy are the same as those of family businesses: overcoming the pandemic and adapting to the demands of a new environment marked by digitalization, respect for the environment and social commitment. To address these challenges, companies need, according to him, “greater productivity and to be able to compete on equal terms with companies from other countries”. And at this point, growth is critical. It has been demonstrated, he said, that at a similar size compared to other European countries, “our companies are perfectly competitive. So let's make it easier for our companies to grow.”
Firm for the commitment to sustainability
As a preamble to the beginning of the Congress, the presidents of the Family Business Institute and the 18 related Territorial Family Business Associations signed an institutional declaration attesting to the commitment of Spanish family businesses to the best management practices that promote sustainability that must be understood from three different and inseparable angles: business, social and environmental.
At the business level, the commitment assumed by family businesses through this institutional statement is to manage through long-term business and investment practices based on ethical criteria, which allow sustainable growth and that take into account the interests of workers, customers, suppliers, shareholders, institutions, administrations and society as a whole.
Social commitment, on the other hand, includes the promotion of diversity, the promotion of gender equality, social inclusion and the generation of stable and quality employment appropriate to the needs of companies. Finally, family businesses are committed to managing themselves in an environmentally friendly manner, adopting the necessary modifications to their processes to reduce CO2 emissions.
The impact revolution
The last day of the Congress was attended by Paul Polman, former CEO of Unilever and co-founder of Imagine, who explained to the audience that “we all have a responsibility for the footprint we leave in this world”.
What world do we want to live in? This is the question we face today.
Capitalism has served us well over the past 200 years. However, nations continue to be plagued by economic inequality, social conflicts, natural catastrophes, the threat of climate change and the consequences of an unprecedented pandemic whose economic and health consequences are still unpredictable.
Governments cannot and do not have the financial resources to face the major social and environmental challenges we face and the negative impact generated by the production of goods and services by companies. Nor can philanthropists and NGOs, undoubtedly useful, offer a viable and scalable solution. They are companies and private capital, the engines of innovation, change and transformation that have the capacity to direct their economic activity and capital flows towards social change that will generate greater economic prosperity and sustainable growth.
Thus, impact investment emerges that has a clear and measurable intention to generate a social and/or environmental impact as well as an economic return.
Under the risk-return-impact equation, impact investing seeks triple returns: economic, social and environmental. It is not about philanthropy or non-refundable donations, but about investments that seek a return of capital while contributing to the search for solutions to the great challenges of humanity such as hunger, illiteracy, health problems, lack of access to drinking water and electricity, gender inequality, unemployment, homelessness, migration and the destruction of the environment, among others. As María Herrero, a partner at Transcendent, has explained, it's about giving meaning to our investments. Because “what does our money do while we sleep?” , he asked the audience.
For Sir Ronald Cohen, president of Global Steering Group for Impact Investment, “this moment requires a revolution. We must make impact the focus of our consciousness. Instead of relying on governments and philanthropy for social improvement, we must introduce a third force to accelerate the pace of change: the private sector... this is the new impact economy, and each and every one of us has a role to play in it.”
https://www.youtube.com/watch?v=0UqlpcUR6dU&t=17s
The Impact Revolution, with Sir Ronald Cohen, president of the GSG
Ainoha Grandes (president of the SHIP2B Foundation), Teresa Guardans (co-founder of Oryx Impact), María Herrero (partner of Transcendent) and Alejandra Mitjans (director of Ashoka, Spain).
The connection between people and their companies
During the session Gerardo Iracheta, president of Sigma Two, has presented a survey that analyzes the social image of the family business. The study draws a number of noteworthy conclusions. For example, that there is a strong connection between people and their companies: 83% of citizens say that their company is very important in their lives; and more than 65% believe that in their company they can develop their talent and grow as a person.
62% of respondents believe that the work of companies is being useful to alleviate the crisis caused by the pandemic and 90% say that companies must play an important role in rebuilding the economy. In this regard, 82% specifically state that their company took appropriate measures to ensure the safety of its employees.
The vast majority of respondents say that they had no problems during the lockdown with supplies dependent on private companies (such as energy, internet, food, etc.) or with the collection of their payroll. On the contrary, the majority - between 58% and 75% depending on the case - say they have had problems managing various public services (health center, ERTES, Sepes, various management). 63.7% have had problems receiving benefits.
In evaluating performance during the pandemic, the Administration gets a scraped approval (5.16 points out of 10, suspended in various age groups and voting intention); large companies obtain an asset (6.30, approving in all age and voting segments), while SMEs obtain a notable score (7.39 and approve in all segments).
