CSR and mentoring

Jesus is the ultimate role model—not just in the spiritual sense, but also in business. He walked the talk. Though also divine, he humbly apprenticed himself in the carpentry family business under his father, Joseph, where he worked for most of his life.

The celebrated part of his career—his preaching and his ministry—only lasted three years before his untimely death.

A reader asks about good mentors: “Our family business is doing well, with my siblings and me taking over from our parents. We have a good working relationship. We are business majors, and we want knowledgeable people to advise us on investment and accounting. Friends tell us stories about hiring expensive consultants placed on the board and put on retainer, but who do not give good advice and are not available when needed. What do we do?”

My reply

I am glad your family is open to professional advice even if you are doing well. I agree with your sentiments, and personally, I decline to sit on boards of companies when I believe that the other members were selected not for their expertise but for their perceived connections or other intangibles.

Many consultants would disagree with me, but I would rather spend my time and effort helping businesses that are genuinely serious about making progress. That said, I never agree to be placed on a retainer.

Find mentors with similar views to yours. Start with your former professors in business school. Who made the most impact? Would the professor’s style fit your family culture? Hopefully you also made a good impression on the professor—then negotiate reasonable terms.

Ask your parents for their contacts. Responsible leaders who have long retired from your competitors, with no conflicts of interest, would know a lot about your field, including investment and accounting issues and would now no longer be bound by confidentiality clauses. Think about your godparents: if they have suitable expertise, they hopefully have your family interests in mind and heart. Invite retired executives—do not poach current ones so you don’t unnecessarily create ill will. Have your lawyer review the terms.

Ask your friends for their mentors, such as talented executives in their businesses who are willing to share expertise. Again, to avoid conflicts of interest, have your lawyer review any contracts before finalizing the relationship.

Of course, you and your siblings (and if possible, your parents) need to speak extensively with a prospective consultant or board member first. If any of you have reservations, then find another prospect.

To CSR or not

Another reader asks: My sisters and I believe in corporate social responsibility (CSR), but we are only a small company. My parents say we are not (the Ayalas) so we can’t afford to help others unless we have a big profit. What do you think?

My reply: You are both right. It would be impossible for you to help others if your business is going down the drain. But you don’t have to be a conglomerate in order to help others.

CSR does not have to be a grand enterprise that lands you in the papers or on social media.

Start small.

Give fair wages and benefits to employees. Pay correct taxes. Recycle. Treat customers fairly. Give talks to schools about business. Invite students to view your enterprise. Protect the environment. Give freely to victims of calamities. Practice diversity in the workplace. Mentor people and help them grow.

“A smaller business could be good in CSR by treating its employees well,” Jon Ramon Aboitiz of Aboitiz Foundation tells Peter Imbong in Entrepreneur Magazine. “You have to do whatever you can. If you can, you definitely should. All businesses should practice CSR because it is good business.”

Have a blessed Yuletide.