It is no secret that as a society we are in constant change and evolution. The idea of progressing and, along the way, making a significant contribution is the driving force of many businessmen and entrepreneurs who are concerned with promoting the country's growth in multiple aspects, while advancing in their commercial activity.
Benefit and Collective Interest Companies, or BIC companies, were created through Law 1901 of June 2018 and subsequently regulated by Decree 2046 of November 2019.
These are companies of any size and sector, of a commercial or mercantile nature, that seek to migrate from a traditional approach, which only aims at maximizing the benefit of partners or shareholders, towards a new model that seeks to generate a triple economic, social, and environmental impact, generating value in the growth and advancement of the region.
More and more entrepreneurs and investors are redefining business success and have become interested in supporting the solution of social and environmental problems.
To this end, and to effectively fulfill the purpose of these companies, five dimensions were defined, understood as those areas where, as an entrepreneur, I will generate added value. Through these five dimensions, and through their execution, the effective implementation and practice of the raison d'être of BIC companies is achieved.
These five dimensions are: (i) business model, (ii) corporate governance, (iii) environmental practices, (iv) community practices, and (v) labor practices.
Regarding the first one, the idea is to promote the construction of business models that are responsible with their employees, society, and the environment; a business model that develops fair trade activities (good practices, stable commercial relationships, and where human, labor, and social rights are respected), employing transparent dialogue, promoting supplier development, and the productive inclusion of women and small entrepreneurs, among others.
With regard to corporate governance, this is understood as all those management and steering bodies and, in general, the internal entities of the company, such as the board of directors. The aim is for all acts to be carried out transparently, achieving diversification in decision-making, making them more impartial and conscious. Likewise, it contemplates the inclusion in boards of directors and assemblies, the disclosure of impacts and the corporate mission, the creation and implementation of transparency and business ethics programs that are easily accessible to all social actors, among others.
Similarly, the third dimension refers to those environmental practices that companies and those behind them will develop, taking an interest in the carbon footprint left as a consequence of the execution of activities inherent to the business function, which consist of environmental supervision and audits, recycling or waste reuse programs, incorporation of clean energies, among other measures, generating empathy with the environment, space, and people.
Regarding the fourth dimension, it then speaks of implementing practices with the community that generate rapprochement and a much more human vision of the company; practices that allow, in some way, transferring the values of the natural persons that make it up to the company itself. Among other activities, it contemplates the creation of employment options for the structurally unemployed population, generating inclusion and opportunity, creating alliances with foundations to carry out volunteering and social work, among others.
And finally, the fifth dimension, and of great relevance, is that related to labor practices. It is the one that aims to ensure labor well-being, a greater sense of belonging with a consequent motivation at work and a better environment for collaborators, who ultimately are the engine of companies, whether small or large. This dimension seeks the implementation of training and the continuous development of collaborators, in labor, professional, and personal matters, implementing measures to identify any salary inequity that may be occurring and offer adjustment alternatives, as well as the opportunity to become shareholders of the company.
Now, this figure is of great benefit and has a very important intrinsic purpose, since the company manages to gain visibility, positioning, and impact in the way of doing business. It is then understood that if the well-being of workers, contributing to the country's social equity, and the protection of the environment are important pillars in the corporate DNA, that entrepreneur will be ready to join and be part of the #BICGeneration.
It is no secret that companies, whether MSMEs or large corporations, require their clients, suppliers, and, in many cases, investors to sustain themselves. Thus, with this implementation, it is also understood that these have interests and affinities, and that, in turn, thinking about this, a comprehensive benefit will be generated with my commercial activity, strengthening the region in different aspects of utmost current relevance and that will increasingly be taken into account when choosing one or another company to purchase its products, services, invest in it, or make commercial alliances because those additional activities carried out for the general well-being are valued.
Additionally, the National Government has implemented some incentives to promote the adoption of this new BIC company model, among which are: (i) discounts in industrial property matters regarding the fees that must be paid for registrations of distinctive signs, for example, before the Superintendence of Industry and Commerce; (ii) tax benefits for the distribution of shares among employees; (iii) the possibility of using the BIC image kit on products, documents, website, and social networks; (iv) preferential conditions in credit lines regulated by Bancoldex, such as fewer requirements to access them or better interest rates. Benefits that will surely be gradually developed and implemented in subsequent decrees; (v) additional points in SENA calls, tie-breaking criteria in public procurement under the Entrepreneurship Law, and preferential conditions in INNPULSA Colombia calls; these are some of the incentives granted by the government for those who decide to implement this condition in their companies.
To conclude, any entrepreneur who decides to be part of the #BICGeneration must declare sustainability commitments regarding each of the five dimensions, complying with at least one (1) of the activities proposed exhaustively in the Law for each dimension, incorporating them into the company's bylaws in the corporate purpose and adding the acronym BIC to the company name.
This statutory reform is approved by minutes as indicated by the bylaws, by meeting of the partners or shareholders, and the registration of the reform is requested at the chamber of commerce.
Likewise, it will be the company's responsibility, through its legal representative, to submit an annual report that accounts for management, including progress on BIC activities. This allows monitoring of activities, generates credibility about the company's commitment, and is also a tool for assertive decision-making. This report must be public and available to third parties on the company's website or at its principal place of business. Its importance lies mainly in the fact that failure to comply with this annual commitment could lead to the loss of BIC company status, after investigation and decree by the Superintendence of Companies, the entity in charge of its supervision.
Prepared by: Salomé Restrepo Rebolledo . Consulting Attorney.