Latin American Energy Industry Leader now Outperforms Industry Benchmarks by More Than a Third
NEW YORK (4/20/21) – LRN Corporation, a pioneer in the ethics and compliance (E&C) space working with more than 700 companies around the world, and Promigas S.A. E.S.P. (BVC: PROMIG), the premier company in the natural gas sector in Latin America, today announce a new high-water mark for corporate governance in the energy industry. Through its ongoing efforts to elevate an ethical corporate culture for its over 3,000 employees, an initiative begun with LRN in 2014, Promigas has implemented and measured changes in its corporate behavior to set a new industry standard.
In the latest LRN analysis, Promigas outperformed energy industry benchmarks across a majority of the factors that make up an ethical culture and eclipsed some benchmarks significantly. Promigas outperformed its peers by 43% for Employee Accountability and by 36% for Motivation. The company now also aligns closely with the world’s leading values-based companies by reaching 93% for Employee Accountability, and 92% for Motivation. Industry benchmark references are available from LRN in its Ethical Culture Assessments and the How Report.
Through its partnership with LRN, Promigas has access to clear proof that their values-based approach to business operations is generating real results. Not only is Promigas outperforming its peers in Latin America but in the broader industry as well and in statistically irrefutable ways. The LRN assessment tools and LRN Advisory relationship give Promigas the ability to interpret the data in meaningful ways. This in turn fuels interventions in its training programs and corporate culture to build on areas of strength and invest in areas of opportunity including those to minimize risk.
“We differentiate ourselves by the way we act, the way we make decisions, the way we behave. Investing in our ethical culture is a key aspect of our corporate governance,” says CEO Eric Flesch. “The way we perform, the way we think, and the way we make decisions is not just a theory in a PowerPoint, it’s part of our DNA.”
LRN CEO Kevin Michielsen notes, “We’re thrilled to see these results and the progress that Promigas is making in redefining leadership in the energy industry and for the region. LRN has long believed that outbehaving is key to outperforming the competition. Promigas is the perfect illustration of that.”
Whereas some organizations seek to operationalize ethics and compliance after a scandal or based on regulatory guidance, Promigas has proactively prioritized its ethical culture as a critical area of differentiation. Central to its approach has been an effort to align its workforce to embrace its corporate values as the basis for how the company operates, governs, and leads. Maintaining and strengthening this reputation for responsible business is, therefore, a matter of strategic importance to the company. LRN has been a key partner in their journey, which is summarized in a case study with Promigas.
Following the launch of the LRN culture program at Promigas in 2014, assessments were conducted in 2017 and in 2020. In the latest, assessment gains were noted against prior internal results as well as against industry benchmarks. For example, the data shows a 21% increase in Promigas leaders’ willingness to accept personal responsibility for mistakes. Modeling this kind of behavior at the top of the organization sets an example for everyone throughout the organization.
“It’s essential to measure the impact of an ethics and compliance program on employee behavior when assessing effectiveness,” says Ty Francis MBE, Chief Advisory Officer at LRN. "Our Ethical Culture and Program Assessment (ECPA) is a proprietary tool that gets at the root of employees’ behavioral choices at work and gauges how your program impacts those choices (or doesn’t). By providing an “MRI” of how your culture actually works in practice, the ECPA measures impact and provides a roadmap to fix weaknesses before they spiral into misconduct. The ECPA meets regulators’ expectations and allows ethics and compliance teams to prioritize scarce resources.”
Companies interested in assessing their own ethical cultures and improving their results should connect with an Advisory expert for a consultation. Investors and analysts interested in learning more about Promigas are invited to a virtual Investor Day on April 29, 2021.
About LRN Corporation
LRN’s mission is to inspire principled performance. Since 1994, LRN has helped over 25 million people at more than 700 companies worldwide simultaneously navigate complex legal and regulatory environments and make ethical decisions, and has also helped hundreds of companies foster ethical, responsible, and inclusive cultures. LRN’s combination of practical tools, education, and strategic advice helps companies translate their values into concrete corporate practices and leadership behaviors that create sustainable competitive advantage. In partnership with LRN, companies need not choose between living principles and maximizing profits, or between enhancing reputation and growing revenue: all are a product of principled performance. As a global company, LRN works with organizations in more than 100 countries. Learn more at https://lrn.com.
Promigas is one of the oldest companies in the natural gas and energy sector in Latin America with more than 45 years of experience. It has an investment portfolio made up of more than 20 companies, dedicated to the transportation and distribution of natural gas, as well as LNG (liquefied natural gas). It also has businesses in electric power distribution, services for large industries and power generation and non-bank financing through the Brilla brand. Learn more at https://promigas.com