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The existence of corporate governances is a reality in many countries of the world as it is in Mexico but its management, regulation and results can differ from one to another because the local authorities, culture, traditions, education and the way of doing business is different in each country. That is why it is important to analyze the specific way of how corporate governance works in this particular country. In Mexico the administrative and financial standards for the corporative practices are incorporated in the Code of Best Practices issued by the Business Council, its essence was taken from the OECD (Organization for Economic Co-operation and Development). This code includes some board members specific functions such as: the revision and direction of the corporate strategy, action plans, risk policies, annual budgets and investments; the selection, supervision, compensation and replacement of board members; the conflict resolution between directors and the misuse of corporate assets and abuse in related party transactions; ensuring the integrity of information systems and financial accounting of the company; the establishment of an Audit Committee to ensure effective corporate governance practices that allow for adequate supervision of the administration of the company; the insurance of a sufficient and proper process of disclosure of information within and outside the company. According to surveys made by the IMEF (Mexican Institute of Finance Executives), IPADE (Pan-American Institute of Higher Business Management) and KPMG consultancy, seven out of ten Mexican companies believe that the adoption of corporate governance is fundamental. An example of this is that a hundred per cent of the automobilist companies have a corporate governance; the sectors that follow this trend are the ones related with real estate, construction, energy, natural resources and companies listed in the stock market. This information let us now that Mexican companies believe that corporate governances are necessary for the fulfillment of the characteristics previously mentioned in this work, but the problem is that
in Mexico, ninety per cent of the companies are family business it is important to recall that the seventy per cent of the gross domestic product and eight out of ten formal jobs are generated by these companies- but the disappearance of all the family companies is due to the lack of corporate governance and preparation for the succession which can be considered as the Achilles hell of Mexican companies. Also, in Mexico only three out of ten family businesses are able to consolidate the second generation and only four per cent of it reach the third generation. Only one out of ten Mexican family businesses have more than a hundred years and less than one-third of it survive to be handled by a second generation, only fifteen per cent reach the third. While, in countries where family companies are very important as in Spain, fifty six per cent of business families have a family protocol that will help them maintain the perpetuity of their business. No matter how small or big a company is, a good corporate governance is very important for the consolidation of a solid business because it improves the structures and processes that make possible the decision making of any business, including family business. With this work we can realize that Mexican companies should implement corporate governance in order to maintain their businesses for a larger number of generations and to maintain the competitiveness not only of their companies but also of all the Mexican economy.
Sources: (n.d.). Gobierno corporativo. Energia a Debate, Retrieved from http://energiaadebate.com/reflexion-sobre-gobierno-corporativo/ Lpez Sarabia, Pablo, L. (n.d.). Efectos financieros del gobierno corporativo y tica en los negocios en mxico: Un anlisis economtrico. Retrieved http://www.dcsea.uqroo.mx/fwalla/Ponencias_Coloquio/ponencia Lopez Sarabia.pdf (n.d.). Eficiencia en la gestin del gobierno corporativo es un factor crtico para el xito de la organizaciones. Centro de excelencia en Gobierno Corporativo, Retrieved from http://ols.uas.mx/cegc/x1000 gc.asp?titulosec=22 (n.d.). Gobierno corporativo en mxico, estados unidos y alemania . Retrieved lo4.pdf Serralde, Rodolfo, S. (2009). Gobierno corporativo en mxico: Hacia una empresa ms profesional e institucional. Top Management, Retrieved from http://www.topmanagement.com.mx/modules.php?management=Go bierno Corporativo en Mxico: hacia una empresa ms profesional einstitucional&name=Noticias&file=show&clave=54213 from http://catarina.udlap.mx/u_dl_a/tales/documentos/lad/lima_t_ra/capitu from