Commitment and leadership


We demonstrate our commitment and leadership in decision making through 3 work areas: ethics and corporate governance, managing and monitoring risk, and attracting and retaining talent.

We are a publicly traded corporation, overseen by a nine-member Board of Directors. The directors serve three-year terms and may be subsequently re-elected.
Board members make strategic decisions while monitoring the creation of sustainable value (economic, social and environmental) and the development of our plan. Likewise, the Board of Directors is charged with reviewing and managing all potential business risks, and requesting and evaluating information in a timely manner in order to mitigate and/or resolve potential gaps that may arise.

The average tenure of our board is 13 years (2019).

In 2019 our Board of Directors had an average attendance of 95%.

As part of the orientation process for new directors, each director is given a set of documents, policies and updates that describe our performance, financial indicators and operations in detail. New directors are also instructed on their obligation to uphold all aspects of the Code of Conduct, including guidelines related to conflicts of interest.
In addition to the orientation program, documentation relevant to the performance of their functions is available on a digital platform. Every member of the board has reviewed ethics-related issues, good business practices and anti-corruption when evaluating amendments to, approving or updating the Code of Conduct, the Crime Prevention Model or the Antitrust Manual, among other documents.

Leaders in Management

Our senior executives consider the economic, environment and social impact of the initiatives and projects presented to the Board of Directors for analysis. The teams also account for these variables as they undertake projects to generate sustainable value for all stakeholders.

Executive Committees

Executives reporting to our Executive Vice President lead committees that address issues like risk, sustainability and corporate ethics in Chile, Peru and Colombia from an interdisciplinary and comprehensive perspective.

Culture of Ethics and Compliance

We work to strengthen an internal culture where each decision is guided by values and aligned with the importance of business ethics. A series of internal tools facilitate and define the reference framework, as well as the processes for following-up, monitoring and supporting teams:

Our Code of Business Conduct

Our code of business conduct defines the framework in which our collaborators relate with our stakeholders, and defines each Employee’s, Executive’s and Director’s obligations, which must be fulfilled.

For more information click here

Complaint Hotline: EthicsPoint

Our complaint channel is open to our stakeholders: customers, tenants, users, employees,
suppliers, investors, shareholders, neighbors and the community in general. We use it to
anonymously and confidentially receive information on irregularities, misuse of company
assets or resources, abusive behavior, violations of current law or breaches of corporate policy.

For more information click here

Our Controller and Internal Audit Division oversee the policy and process that establishes controls, revision and follow-up of the risks to which we are exposed. We strive to uphold the principle of precaution and anticipate situations that could threaten the sustainability of our operations or the stakeholders with which we interact.

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The methodology used to gather, analyze and rate risks is in alignment with the Parque Arauco Risk Methodology, which is a combination of COSO and ISO 31,000 methodologies.

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On that basis, our internal control and management map classi es risks into three categories, each of which is directly or indirectly associated with environmental, social or economic aspects of the operation.

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EXPANDING RISK MONITORING

In 2016, teams from the Chile Division began a project to strengthen monitoring, identication and evaluation of risk factors from a top-down perspective in each area. The project is designed to serve as a tool for ongoing management and reinforce the culture of risk-based management and anticipation—an aspect key to the company’s sustainability over time.

PROJECT OBJETIVES AND APPROACHES

  1. Anticipate and respond to market opportunities; address the business’s potential shortcomings.
  2. Protect current assets and expand growth opportunities.
  3. Create value for the business.

We identified and verified the prevalence of concentrated risk factors in the Chile Division through an exhaustive survey. Forty-six people responded, including the Country Manager; management and team members from the commercial, engi- neering and projects, marketing, shopping centers, service and infrastructure, development, outlets and strip centers areas, as well as the legal and human resources areas.

We concluded that the main risk factors in Chile are:

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Furthermore, we determined the probability of occurrence and the impact in the event of occurrence for each risk factor. We also established work plans and management priorities for each of the areas involved.

The same methodology will be applied in the Peru and Colombia Divisions.

Our Risk Management E orts Emphasize Safety and Protecting People

People are the heart of our operations. Regardless of their role within our shopping centers, their protection and safety from potential risk is a priority in our decision making. We work each day to strengthen standards that guarantee their protection and prevent risk situations.
In the last half of 2016, we established a priority action plan to set high standards of security and wellbeing for any person within our shopping centers or operations. The process aims to develop a system for our entire operation based on the best safety and security standards.
To create this system, we have partnered with DuPont, which is world-renowned for its experience in “Safety and Security” management. DuPont has reviewed certain assets in our portfolio, particularly in Peru and Colombia. Among the issues examined in this process are:

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For the other shopping centers, we will continue to hire consultants with internationally renowned experience and reputation in these areas. The objective is to identify a baseline for our entire operation and, on that basis, establish a plan to meet the new standards we set as mandatory in all locations where we do business.
For the Chile Division, in order to continue improving these aspects, we formed the Safety and Security Unit, which reports to the country’s Services and Infrastructure Area. We drafted a work plan aligned with corporate strategy to improve monitoring, standardization, support and consolidation of operating practices that safeguard the people in our shopping centers.

We know that the people on our team play an essential role in the growth, development and success of our business. That is why our organizational culture is based on two concepts: excellence and happiness.

These foundations of corporate values underpin all employee- related processes, from recruitment, selection, compensation, training initiatives, recreation and family, social and work life activities, to development everywhere our businesses operate.

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Our Employees

Through our recruitment processes, we aim to attract and select talented professions whose skills and individual values are aligned with our corporate culture. We pay careful attention to the pro le, skills and abilities of those interested in joining our team in order to ensure that the working environment continues to motivate and inspire our daily work.

WE HAVE 571 EMPLOYEES IN CHILE, PERU AND COLOMBIA.

Corporate policy is to o er indefinite contracts. The human resources area analyzes exceptions on a case- by-case basis and we have had to hire some people on fixed-term contracts. In 2016, only 1% of our workforce was in that situation. Of those, half were offered indefinite contracts upon fulfillment of their fixed-term contract.

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Regarding the proportion of men to women and the change in this figure: 43.8% of Parque Arauco’s workforce was female in 2015; this figure grew to 44.3% in 2016. The following figure shows the breakdown by country.

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A breakdown of our workforce by type of position among our employees reveals that the majority are professionals and executives.

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Our Work Environment, the Seal that Places Us among the Best Places to Work

We foster and measure a good work environment in Chile, Peru and Colombia with several initiatives, all of which are tied to the foundations of our corporate values: excellence and happiness.
According to the results of the 2016 Great Place to Work survey, 85% of our employees are satis ed with Parque Arauco, an increase of ve percentage points compared to 2015.

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The Benefits of Working at Parque Arauco

We o er a series of benefits that aim to maximize wellbeing and quality of life for the people on our team:

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The expense related to these voluntary initiatives increased significantly (24%) compared to 2015. These funds were used primarily to aid and benefit employees.