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  • Metaza: Implementing Corporate Governance in a Family Business

    Metaza SA (Metaza) was a family business created by two brothers who later invited their younger siblings to join the firm. Metaza operated in the steel sector, a capital-intensive business with fierce competition. The industry had experienced several mergers and acquisitions led by international players. To remain competitive, Metaza had changed its strategy, moving away from being a steel dealer and toward being a value-added producer. However, these changes generated debate within the family business, which operated with a low level of institutionalization. Consequently, the brothers hired a family business governance consultant for assistance. Metaza’s chair and chief executive officer needed to learn how to implement these strategic changes so that he could pass the torch of a healthier organization.
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  • A Note on Family Business Governance in Latin America

    <p align= "justify">Many factors influence corporate governance in a family firm, the most prevalent form of business entity in Latin America. National culture affects a family firm's societal values, as well as economic, political, and legal systems of governance. Normative behaviour and expectations are also key factors that affect both individual and organizational norms. The firm’s characteristics are another major source of influence. In addition to these major factors, various other variables play a role on shaping the firm's corporate governance, including family unity, patriarchal expectations, and inclusivity of the family definition. All of these factors can influence the numerous decisions that family businesses make in regard to their corporate governance, which makes it impossible to apply one approach for all family firms in Latin America. Each organization’s board of directors may have specific characteristics that require different mechanisms to make effective governance decisions. This technical note discusses an evolutionary pattern of corporate governance, rather than a single approach, that could be effectively applied to the decision-making board of a family firm in Latin America.
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