Advancing trust in the mexican marketplace
Bernardo altamirano rodriguez
Found and CEO-BBB Mexico (better business bureau, founded in 1912 in Mexico)

1. Why I built the BBB in Mexico 2. Advances given 3. Development of practices and ideas for the allowance of institutions 4. Identify context of Mexican econmy

5. Business without borders a. Economic = trade liberalization and structural reforms b. Political = impact of the state in the economy and markets i. State participation in economy. c. Social = explaining middle class origins ii. Difference between US origins and Mexican middle class. iii. Different tiers of government, and public work are the two main sources of middle class in Mexico. d. Culture = risk averse and prejudices towards businesses iv. Mexico is more risk averse to investment of money and larger prejudices towards starting businesses. v. Important community belief is that making money is not good. “rich capitalist” ideal. e. Rule of law = different legal systems and property rights vi. Different legal systems (property rights system) and considerations are important because. vii. Napoleonic law 6. Shared heritage of the US and Mexico f. We share historical origins and geographical conditions (10 states) g. Common cultural values however: viii. Different behaviors when crossing the border (both sides) ix. Huge contrast of economic and commercial outcomes, performance and practices x. Has nafta improved our economic performance and regulation? xi. Institutions are the main reason why economies are different. (regarding economic growth) xii. What makes someone change so radically, both sides? 7. NAFTA OVERVIEW h. The value of the exports from MEXICO to US and Canada is 7 times the value of 1993 i. In the case of imports, mexico has four times more products from us than in 1993 j. According to loopman, et al. (2010) xiii. Almost everything exporting, has a lot of US content k. FDI from US and Canada represent around 50% of all Mexican FDI l. Before NAFTA us FDI in mexico were around 2 b dollars. In the last decade it was of 10 billion dollars annually. m. As a whole, mexico is better with NAFTA xiv. But what about smaller businesses 1. Smaller businesses have suffered. 2. While large and medium companies have adopted best practices and raised its product after with NAFTA, micro and small businesses have not. 3. Consequence, there are differences on the professional of the firms regarding consumer competition oriented schemes. n. McKinsey Global Institute (march 2014) shows: xv. Productivity has grown 5.8% a year in large firms. But fallen 6.5% a year in traditional firms xvi. Compared productive of small traditional and large modern firms dropped from 27% in 1999 to 8% in 2009. xvii. Employees in traditional bakeries are 1/50th as productive as those in largest modern companies xviii. Wages in traditional firms fell 2.4% a year from 1999 to 2009 xix. Mexicio needs to reduce regulatory complexity, improve enforcement and remove incentives to remain small and unproductive. o. Regulation in mexico xx. Mexico is the 3rd country with highest restrictions towards businesses. 4. Among all OCP countries xxi. Regarding economic freedom, trading internationally, ranked 91 however. 8. Challenges p. A country divided by its productivity capacity and standards and by its cultural and educational cleavages. q. Excessive regulation not generating the adequate incentives and lack of individual and corporate responsibility r. High costs and ineffective law compliance instruments s. Growing middle income households demanding higher quality t. Recent structural reforms open opportunities to businesses u. How can we develop Weak state holders coalition for a trustful marketplace xxii. No incentive to build a community. 9. NAFTA REGION v. NAFTA emphasis is on countries’ trade output w. Cultural differences among consumers, businesses and governments x. Transit from a trade agenda to better business practices and self-regulation benchmarks (advertising, safety product, labeling) competitiveness at all levels and increased trust int eh marketplace y. Moving towards a global culture of consumption and commercial practices xxiii. Raising standards in the global economy 10. BBB z. What is BBB? xxiv. Non-profit business organization xxv. Founded in 1912 xxvi. 113 offices in US and Canada xxvii. 400 thousand accredited businesses xxviii. 100 million instances of consumer services every year {. What does BBB do? xxix. Manages “Trustmark” accreditations for businesses and charities xxx. Operates codes of business practice and standards for advertising and charities xxxi. Processes consumer complaints xxxii. Reports on businesses and charities xxxiii. Provides dispute resolution services through its self-regulatory programs 11. BBB work in Mexico |. Identify and develop best practices for businesses in Mexico }. Create and deliver training in best practices and customer service to businesses to complement the skills and expertise of business owners and leaders ~. Provide a resource to enable consumers in the merging middle class to find trusted businesses xxxiv. Important because jobs are still mouth to mouth. This plumber is the best, pick him up. xxxv. Mexico is trying to show to people as BBB is building a marketplace of reputation . Create a body of small and medium sized businesses to supply larger companies with trusted partners committed to marketplace excellence xxxvi. Largest bakery, “BIMBO” Mexican bakery. Talking to them to become apart BBB and become accountable to other businesses. Screening for businesses to identify the best commercial price. . Create self-regulatory programs that reinforce best practices, corporate responsibility, build transparency, and limit the need for government regulation 12. Enhance self-regulation and compliance initiatives . Responsive to market place needs: xxxvii. Efficiently utilizes resources and adapts readily to change xxxviii. Complements existing laws and regulations xxxix. Clear and transparent legal criteria xl. Better relations with agencies . Show businesses to have a better public agency reputation, vision of other companies that are non-compliant and benefits/no benefits, and companies that are not in regulation. 13. Building relevance (advantages) . Unique: there is no similar organization in Mexico . Overregulation = cooperation with agencies in consumer protection, best practices on competition, telecomm, energy, privacy, and compliance . Advantages = work closely with the industry of tourism xli. Hotels, transportation, . Major cities =Tijuana, Monterrey, Cancun, Mexico city xlii. Importance in Mexican economic importance 5. Tijuana = talking about new region “caliback” a. Most important border in the whole world, implies that people from both countries talk about region integration. 6. Monterrey = center of Mexican development and near cancun 7. Cancun = services related to tourism 8. Mexico city = biggest community of businesses . Community = belong to a family of 400,000+ businesses with and identity based on integrity and commercial accountability xliii. Best practices, best prices, and be a part of community of business of those that are trying to do better things. Elite group? . Reputation = urgent renovation of our perception in all fields xliv. Build their own reputation with BBB. xlv. Media participation (investments), BBB only one discussing problem of the worlds, . Branding = press and media participation; social networks 14. Advancing trust in the Mexican marketplace . Introduce in traditional service and commercial markets: xlvi. Competition xlvii. A trustful information network for firms and consumers xlviii. Foster incentives to firms based on self-regulation, standards, and best practices xlix. BBB code and seal . Goes to same points above (as to reasons why ): l. Enhance productivity, wages quality, and consumer satisfaction li. Distinguish the reputation of outstanding firms lii. Improve law compliance and dispute resolution liii. Build a marketplace with an ethical vision 15. In US and Canada . BBB (american) liv. Start with trust . BBB (Mexican) lv. Comunidad de confianza 16. Original framework of conference . Why is this important to BBB Mexico? . Are we trying to impose a model? lvi. no, not really. Just an option. But itll be successful. . Do we have only a vision of making businesses wealthier? lvii. Social ambition, importance of social values of marketplace and businesses . Why are we doing this? lviii. Because we believe in the principles and foundations of commerce. 9. “commerce renders men independent of each other, gives them a lofty notion of their personal importance, leads them to seek to conduct their own affairs, and teaches how to conduct them well because it therefore prepares men for freedom, but preserves them from revolutions” = Alexis de Tocqueville 17. Research and anlysis: . Bbb.org/mexico 18. Articples and opinions: . www.bernardoaltamirano.com 19. Contact info: . @beraltamirano . baltamirano@mexico.bbb.org . (52 – 55) 5652 7440