Life in society is based on rules. If we do not follow clear rules, based on social values and having the common welfare as the center, human coexistence would be impossible. In relation to companies, the same perspective can be taken. We cannot conceive a successful organization without a clear and solid mandate to follow. This business mandate is called Corporate Governance.
Three decades ago, Sir Adrian Cadbury, a British businessman known as a global governance pioneer, defined Corporate Governance as “the system by which companies are directed and controlled”. This definition, included in the report made by the Cadbury Committee to the London Stock Exchange in 1992, is still recognized around the world as the starting point on how companies should be managed.
In other words, Corporate Governance is a system of checks and balances that allows the business stability to be maintained in such a way that organizations can be managed in a responsible, fair and transparent way. The principles established by Cadbury in the 1992 report that set the standard for Corporate Governance, were focused on having a clear division of duties and responsibilities. In this way, one recommendation was to separate the roles of Board Chair and CEO.
At Trinity Capital and Trinity Capital International, we promote Corporate Governance as an organizational pillar. We believe that this is the base for a responsible and sustainable growth. In the words of our founder, Omar González Pardo, “If the pillars of life, a family, or a company are solid, it is easier to obtain the desired performance, regardless of the field of action to which one is dedicated. In companies, these pillars are provided by values and corporate governance”.