As society and business are reconciling the events of the past two years and a new corporate license to operate is taking shape, boards are facing a marked need to understand what changes they must make in order to successfully lead their organizations through both the near- and long-term futures. 

In most countries, there is a very clear expectation that companies take a stand on social and political issues, the war in Ukraine being a clear example in which many stakeholders expected companies to sacrifice their profit and operations for the greater good. In Mexico, companies are expected to put their communities first and protect them from the combined impacts of the COVID-19 pandemic and the increased cost of living caused by the war in Ukraine. And, in almost every country, stakeholders now expect and require companies to act in a sustainable manner. 

So, have boards moved the dial when it comes to changing their composition to tackle these new expectations and mitigate the risk of losing their license to operate? In Mexico:

 

 

While there has been progress in broadening the spectrum of experience around boardroom tables in BMV IPC companies—particularly by adding the expertise of sitting executives and those who have not served on boards before—each company needs to make sure it is not only prepared for today’s challenges but is able to anticipate what type of directors it needs in order to be future-proof.

Acknowledgments

Thanks to Lewis Adams and Lydia Peraza for their contributions to this report.