BusinessMirror August 24, 2019

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BusinessMirror DYING PATRIARCHS, ROTARY CLUB OF MANILA JOURNALISM AWARDS

2006 National Newspaper of the Year 2011 National Newspaper of the Year 2013 Business Newspaper of the Year 2017 Business Newspaper of the Year 2019 Business Newspaper of the Year

2018 EJAP JOURNALISM AWARDS

BUSINESS NEWS SOURCE OF THE YEAR

DEPARTMENT OF SCIENCE AND TECHNOLOGY

2018 BANTOG MEDIA AWARDS PHILIPPINE STATISTICS AUTHORITY

DATA CHAMPION

www.businessmirror.com.ph

A broader look at today’s business n

Saturday, August 24, 2019 Vol. 14 No. 318

P25.00 nationwide | 22 pages | 7 DAYS A WEEK

VALERIY KACHAEV | DREAMSTIME.COM

ENTITLED HEIRS

Many family-owned and -run Asian firms are being set on road to ruin by the mortality of their founders and the sense of entitlement of heirs not quite ready to take the helm.

T

By Cai U. Ordinario

HE mortality of patriarchs and a high sense of entitlement among children are sending more family-run businesses to ruin all over Asia, including in the Philippines, according to a professor at the Ateneo Graduate School of Business.

At the Pandesal Forum in Quezon City recently, Ateneo Professor Enrique M. Soriano III said 8 out of 10 families who ask to consult with him for intervention are already on the brink of a breakup. Soriano said the parents’ fear of losing control of the companies they built, as well as the consequence of bad parenting that makes children feel entitled to their empires, contribute to family boardroom squabbles. “Out of 10 families that go to

me for intervention, 8 are on the verge of a breakup. That bad,” Soriano told the BusinessMirror on the sidelines of the forum hosted by Kamuning Bakery. “When they [are] constantly in conflict with the family and the patriarch or the matriarch, the children become entitled, they continue to receive unlimited amounts of support even if they perform or do not perform. So back to fair is equal and equal is never fair. So there is conflict the moment the

founder is no longer around,” he explained. Soriano said many major firms and jobs have been lost due to these squabbles. One such example was Cosmos, the leading softdrink manufacturer in the 1970s. He said that if family differences were only resolved before everything came to a head, Cosmos would have celebrated its 100th anniversary this year. The company was instead sold and is now owned by San Miguel Corp.

Bloody sometimes

SORIANO said some conflicts can even lead to death. During the forum, he shared the tragic story of the Taiwan-based Mayfull Food Corp., which saw the death of three brothers after a heated boardroom discussion. According to a report from the Taipei Times in 2015, brothers “Huang Ming-huang and Huang Ming-jen were killed by bullet wounds to the head, allegedly fired Continued on A2

As global economic picture dims, solutions seem out of reach By Paul Wiseman, David McHugh & Josh Boak

W

AP Business Writers

ASHINGTON—As global leaders gather on two continents to take account of a darkening economic outlook, this is the picture they face: Factories are slumping, many businesses are paralyzed, global growth is sputtering and the world’s two mightiest economies are in the grip of a dangerous trade war. Barely a year after most of the world’s major countries were enjoying an unusual moment of shared prosperity, the global economy may be at risk of returning to the rut it tumbled into after the fi-

nancial crisis of 2007-2009. Worse, solutions seem far from obvious. Central banks can’t just slash interest rates. Rates are already ultra-low. And even if they did, the central banks would risk robbing themselves of the ammunition they would need later to fight a recession. What’s more, high government debts make it politically

PESO EXCHANGE RATES n US 52.2430

FRENCH police officers get instructions in front of the Le Bellevue at the beach promenade ahead of the upcoming G7 Summit, in Biarritz, France, on August 22, 2019. The G7 Summit will host the heads of countries with advanced economies from the United States, Britain, Canada, Germany, Italy, Japan and France, and will be held in Biarritz between the 24th and 26th of August. AP/MARKUS SCHREIBER

problematic to cut taxes or pour money into new bridges, roads and other public works projects. “Our tools for fighting recession are no doubt more limited [than] in the past,” said Karen Dynan, an economist at Harvard University’s Kennedy School. The International Monetary Fund and the World Bank have downgraded the outlook for worldwide growth. On Thursday, Moody’s Investors Service said it expects the global economy to expand 2.7 percent this year and next—down from 3.2 percent the previous two years. And it issued a dark warning: Get used to it. “The new normal will likely continue for the next three to four years,” the credit rating agency said. Concerns are rising just as central bankers meet in Jackson Hole, Wyoming, and leaders of the Group Continued on A2

n JAPAN 0.4909 n UK 64.0186 n HK 6.6635 n CHINA 7.3758 n SINGAPORE 37.7124 n AUSTRALIA 35.2954 n EU 57.8905 n SAUDI ARABIA 13.9303

Source: BSP (August 23, 2019 )


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