Administrative audit and business sustainability: 3 4

Unraveling the causes of the high mortality of companies

Abstract

The previous normality was complex, with dubious customs and habits, both in the business, economic, and political sectors. The Covid-19 pandemic has highlighted numerous things found in the concept of workshop blindness. This makes us reflect on things that, despite already knowing them, we observe differently after a specific event. For a company to thrive, it is essential to understand that there are usually two groups within it (not necessarily opposing), the first group made up of General Management (GM) and the other employees. If the first group suffers from a malfunction, all employees in the company suffer, just like the second group. It is important to note that out of every 10 companies that start operating today in our country, eight of them will cease operations within the following two years. Why is the mortality rate so high or even the presence of companies in Mexico? What is the duty of the general management of companies in this bankruptcy issue? What are the most common situations? Of course, the problem is multifactorial, it is examined from the perspective of administrative auditing the events and situations that occur with some regularity.