In a recent conference hosted by Corporate Excellence-Center for Reputation Leadership,industry leaders from renowned companies such as BBVA,Iberdrola,and Telefónica gathered to discuss the essential elements for corporate longevity. The event highlighted that a strong organizational culture, a clear purpose, and responsible leadership are crucial for companies aiming to thrive over generations. With alarming statistics showing that only 43.8% of businesses founded in 2017 survived five years, the focus on building trust, creating long-term value for all stakeholders, and fostering innovation has never been more critical. As emphasized by María Luisa Martínez Gistau, companies must not only adapt to change but also cultivate a legacy rooted in ethical management and shared prosperity to ensure lasting success.
Q&A: insights on Corporate Longevity from Industry Leaders
Editor, Time.news: Thank you for joining us today to discuss the critical elements of corporate longevity highlighted at the recent Corporate Excellence-Center for Reputation Leadership conference. It’s clear that only a small percentage of businesses survive beyond five years,with recent statistics revealing that only 43.8% of companies founded in 2017 made it past this milestone.Why do you think organizational culture plays a pivotal role in this survival rate?
Expert: Thank you for having me. Organizational culture is the backbone of a company. it shapes employee behavior, influences how decisions are made, and determines how effectively a company responds to challenges. A strong culture fosters trust, encourages collaboration, and helps retain talent, all of which are essential for long-term success.Companies like BBVA, Iberdrola, and Telefónica have recognized that cultivating a robust organizational culture aligns employees with the company’s vision and values, ultimately reinforcing their capacity to endure market fluctuations and uncertainties.
Editor,Time.news: You mentioned the importance of a clear purpose. Can you elaborate on how a defined purpose impacts a company’s longevity?
Expert: Absolutely. A clear purpose gives direction and motivates employees beyond financial goals. It connects their work to a broader mission, which can enhance engagement and commitment. When employees see how their efforts contribute to societal well-being or environmental stewardship, they are more likely to invest in their work and seek innovative solutions. This intrinsic motivation not only boosts productivity but also positions companies as attractive employers,which is vital in today’s competitive labor market.
Editor, Time.news: At the conference, María Luisa Martínez Gistau emphasized responsible leadership. What are some characteristics of responsible leadership that contribute to a company’s capacity for longevity?
Expert: Responsible leadership is characterized by transparency, ethical decision-making, and a commitment to stakeholder welfare. Leaders who prioritize these qualities are better equipped to build trust within their organizations and with external partners. They create an environment where ethical management is the norm, promoting shared prosperity. This approach ensures that all stakeholders, including employees, customers, and the community, feel valued, which is essential for enduring success.
Editor,Time.news: The focus on building trust and creating long-term value has never been more critical. What practical steps can companies take to integrate these priorities?
Expert: Companies can start by conducting regular stakeholder engagement sessions to understand expectations and aspirations.Regularly disseminating details about company operations and decisions is crucial for building transparency. Additionally, businesses should invest in long-term strategies that align with their values instead of pursuing short-term profits. This includes fostering innovation by allowing teams to experiment without fear of failure, thereby positioning the company as a leader rather then a follower in its industry.
Editor, Time.news: In closing, how can organizations cultivate a legacy rooted in ethical management and shared prosperity, as Ms. Martínez Gistau mentioned?
Expert: Cultivating such a legacy requires a consistent commitment to values-based leadership. companies should embed ethical considerations into their core strategies and everyday practices. This could mean adopting sustainable practices, engaging in corporate social duty initiatives, and continuously reassessing their impact on society and the environment. By doing so, they not only enhance their reputation but also ensure they are looked upon favorably by future generations, thus securing their legacy in the business landscape.
Integrating strong organizational culture, clear purpose, and responsible leadership will be basic for companies aiming to thrive in an ever-changing world.by fostering an environment of trust and ethical management,businesses can achieve not only survival but also a lasting impact in their industries.