Effective
Governance in Family Businesses:
The Fifth Family Business Breakfast Roundtable
"To
ensure lasting family business relationships, effective communication
among members should be prioritized," Mr. Michael Escaler,
President and CEO - All Asian Countertrade Corporation, advised
participants of the Fifth Family Business Breakfast Roundtable with the
topic Effective Family Business Governance held at the Blue Room of
the Ateneo Graduate School of Business (AGSB) in Rockwell, Makati last
September 29, 2004.
According
to Mr. Ricardo H. Mercado, Chair - Department of Leadership and
Strategy of the John Gokongwei School of Management, Effective Governance
consists of concrete and institutionalized responses of those responsible
for the family business in setting family policies that ensure
accountability and effective decision-making. Such quality of governance
creates processes that allow family business to become more successful.
Mr. Escaler led the roundtable discussion on how important Family Business Leadership is in fostering family relationships and bridging family beliefs and core values to the business. "Each family member's individual and business concerns should be considered in making significant business decision," he emphasized.
Regarding the issue of having non-family members as part of the Board of Directors, Mr. Escaler said that it is advisable that the board eventually include non-family members to add further dimension to the decision-making process of the family business. "Professionalizing the Board makes it more formal and efficient," he explained.
Aside from being President and CEO of a six billion peso sales company and the biggest sugar trading company in the Philippines, Mr. Escaler is also the President and CEO of San Francisco Electric Co., Pampanga Sugar Development Corp, Balibago Waterworks, and Metro Clark Waste Development.
Meanwhile,
Dr. Antonette Palma-Angeles, Academic Vice President - Ateneo de
Manila University and Professor of Philosophy and Ethics in both AGSB and
Loyola Schools, served as the reactor. She praised Mr. Escaler's
patriotism in coming back to the Philippines after being out of the
country for almost 22 years. He came back to help in making their family
businesses succeed, thus providing employment to many. She commended his
recognition of local culture (by studying, listening, gathering
information on how people think and behave and what they value) as a major
consideration in arriving at major and timely business changes. "How
these changes will be introduced and educating those who will be affected
should also be considered," Dr. Palma-Angeles added.
Sponsored
by the Department of Leadership and Strategy of the John Gokongwei School
of Management, the Family Business Round Table (formerly known as the
Family Business Breakfast Forum) aims to foster healthy professional and
personal relationships among members of family-owned businesses. The round
table was launched in 20 September 2003 as an offshoot of the 3rd Business
Leadership Forum entitled "It Runs in the Blood: Unlocking the
Secrets of Successful Family Businesses."
For
more information of the Family Business Breakfast Roundtable, you may call
426 6001 local 5521 or visit the John Gokongwei School Of Management's
Department of Leadership and Stratetegy, 2nd Floor, JGSOM Building, Ateneo
de Manila University - Loyola Schools.