EGADE Business School Mexico
This case unfolds in Chihuahua, one of Mexico’s largest and most industrialized states located in the country’s Northeastern region. Despite its comparative prosperity, this state has experienced severe social distress, both in its rural and urban areas. After a natural disaster in 1990, private business leaders came together to ask the local government to raise companies’ payroll tax (ISN) and to create a trust fund to collect those additional funds in order to use them to help rebuild the city. Over the years, this initiative, launched by local business leaders to build an emergency fund for natural disasters, turned into the Chihuahuan Business Community Foundation (FECHAC, from its Spanish acronym), a civil society organization (CSO) that managed this trust fund’s relief resources.