A Legacy of Purpose: How One Family Transformed a Region Through Business and Philanthropy

In 1904 Cali, Colombia was a small, underdeveloped village, without electricity but, Manuel Carvajal Valencia saw potential. From the beginning Manuel understood that the true measure of success was not in profit alone, but in the power of business to uplift society and bring forth meaningful change.

Driven by this altruistic purpose, he founded what would later become Organización Carvajal by purchasing a printing press to publish a weekly newspaper called El Día (The Day) aimed at advocating for the creation of the Valle del Cauca department and the Cali diocese. Within a few years both were achieved and the newspaper closed, but by the time the business had expanded into paper products such as notebooks and other office supplies and continued its expansion in the printing and publishing business and across different geographies keeping this purpose alive.

As the company thrived it played a crucial role in the development of the region and what would become one of Colombia’s main cities, helping expand public services, improve transportation and connectivity, as well as access to health and education for its employees and their families. Some of the social programs pioneered within the company were latter adopted as government policies at a national level, many of them still in place today.

However, progress came with its challenges. Cali located in southwestern Colombia, close to the Pacific coast soon found itself in the center of drug trafficking, armed conflict, gang violence and internal displacement.
To thrive during such hardship was to face a moral truth: “There cannot be a healthy company in a sick social environment… For this reason, the responsible businessman must necessarily commit himself to the solution of social problems.” These visionary words spoken by Manuel Carvajal Sinisterra in the 1960’s -long before corporate social responsibility became a global trend, encompass the spirit of our family’s purpose driven leadership to this day.

Chasing dreams in daylight — youth leading the way toward a brighter future.

For us, privilege comes with responsibility — and the greater the privilege, the bigger our responsibility to give back to society. In line with this belief, Manuel proposed that shareholders donate a portion of their shares to establish a foundation. In an act of profound generosity, the family donated 23.5% of their shares to ensure the autonomy and sustainability of Fundación Carvajal, converting it into its majority shareholder — a groundbreaking structure for its time.

Business as a force for change and solidarity with others is our legacy and establishing Fundación Carvajal as an autonomous and sustainable institution is part of who we are.

Over its 120-year journey, Organización Carvajal has navigated two world wars, global recessions, economic crises, the digital revolution, a pandemic, social uprisings and now the rise of AI. The Family and the company keeps adapting while holding fast to core values rooted in generosity, humanism, education, personal growth and deep commitment to social responsibility. Across more than a century, it has diversified into school supplies and paper, food packaging, technology services, and real estate—expanding across continents while maintaining a strong, purpose-driven governance structure. Carvajal stands out not only as one of the very few companies in Latin America—and globally—still owned by the Familiy and now in its sixth generation, but also for its distinctive legal setup dating back to 1960-1970’s, under which a foundation owns a significant share of the company. Organización Carvajal is a Pioneer in the “Enterprise Foundation Model: where a legally independiente, not-for-profit foundation holds an anchor stake to ensure long-tem stewardship and fund philantropic purposes.

"There cannot be a healthy company in a sick social environment… For this reason, the responsible businessman must necessarily commit himself to the solution of social problems"

Manuel Carvajal Sinisterra, a Colombian businessman, politician, and philanthropist, was a driving force behind the founding of Universidad del Valle, the Hotel Continental, and the National Business Association of Colombia (ANDI) in the 1940s.

| PHILANTHROPY & FAMILY LEGACY

As Ana Maria Guerrero Carvajal, president of the board of Fundación Carvajal, said “We see our business as an instrument to promote economic and social prosperity by doing things right. The Foundation is the vehicle that makes it possible, and it plays a crucial role in building a positive reputation for the business.”

However, as the family grows keeping our legacy alive is more relevant than ever. For us, the secret to sustaining a family-owned business across six generations lies in having a coherent story that stays relevant over time, rooted in the family’s values and transcending both business and family spheres. In our case, solidarity—with our employees through the business, with the surrounding impoverished communities through the Foundation, and with the Family through the social dividend—is one such example. We believe in providing people with a basic standard of well-being and the tools to sustain it. This is especially important when engaging younger generations, who are more empathetic and place greater value on efforts to make the world a better place.

We currently do so through several initiatives:

1 Philanthropy as a tool to build emotional cohesion.

Philanthropy is a wonderful tool to build emotional cohesion among family members, to build on the social, reputational and human capital by giving them something to be proud of, a way of saying our legacy goes beyond the business. But to do so, communication needs to be continuous and consistent if you want to build rapport. We do so by showcasing to the family what Fundación Carvajal is doing. This has turned out to be a powerful tool to engage new generations as they seek to connect on a deeper level with the business and the family values.

2 Leadership through evolution and innovation.

Evolution and innovation core to our family values, are also deeply embedded in Fundación Carvajal as it continues to reinvent itself to be at the forefront. Recently the Fundación has undergone two groundbreaking changes.

● A new approach to combat poverty

Instead of following donor driven projects, Fundación Carvajal shifted its focus to prioritized communities surrounding our areas of influence. It started working with families, not just individuals, to overcome poverty by focusing on three dimensions: educational conditions within the household, income generation and personal development. This ambitious new strategy marked a strong change toward a more comprehensive family centered approach for lasting impact.

● A new governance structure

Fundación Carvajal recently redesigned and streamlined its governance structure to make it more effective, agile and responsive to the needs of the communities it serves. Additionally, a new Owner’s Council was elected prioritizing the participation of younger family members. Older generations willingly stepped down to allow for this change, a conscious decision that sent a powerful message by doing so. By handing over one of the cornerstones of our legacy, they not only expressed pride in what had been built but also entrusted new generations with the responsibility to lead and take it to the next level. The new corporate governance of the foundation also adopted best practices from the business: board member´s election through merit, external evaluation, tenure periods and high standard profiles.

● Site visits to connect

Never underestimate the impact of a hands-on experience and genuine interaction with beneficiaries. In recent years, we’ve organized different visits to the Fundación and its community centers, where family members witnessed firsthand how lives are being transformed daily. What began as a strategy presentation at a Family Assembly becomes a reality in the onsite visits, with stories of new beginnings, hope and lives changed forever, inspiring us all and reminding us once again why 120 years later our family’s purpose driven leadership is still relevant.

The current Institutional Strategy aims to contribute to overcoming poverty in Valle del Cauca and Northern Cauca.

Currently the Foundation has an annual budget of USD $8–$10 million dollars, through partnerships with international aid organizations, local governments, businesses and other foundations. During 2024, 21 territorial projects were implemented, generating a significant impact on the communities served. A total of 1,124,010 services were provided through the Basic Service Centers, while the Didactic Centers delivered 100,774 in-person library services. The Fundación Carvajal School, via its e-learning platform, enrolled 6,379 beneficiaries and celebrated the graduation of 5,635 of them. Additionally, 13,933 household support sessions were carried out, strengthening community engagement. The service portfolio included 3,416 trainers, 34,271 scale users, and 40 strengthened organizations. Lastly, 35 social solutions were implemented, reinforcing the commitment to comprehensive territorial development.

Family legacy is a powerful tool when it reflects authentic beliefs and values. When it speaks of who we are at our core, it transcends time and keeps generations engaged. Family legacy needs to be genuine and unique to each family; only then will different members be able to connect with it. Only then will it link the family’s past with the future they envision.

"As the family grows keeping our legacy alive is more relevant than ever. For us, the secret to sustaining a family-owned business across six generations lies in having a coherent story that stays relevant over time, rooted in the family’s values and transcending both business and family spheres"

Philanthropy is one of the most, if not the most meaningful way to share this legacy with the family and others. But true impact goes beyond the cause you choose to support and it’s more about how you choose to do it. Transparency, accountability, impact measurement and professionalism ensure that the family’s generosity towards giving, transforms into trust and a long-lasting legacy.

The spirit of our family’s purpose driven leadership continues to inspire us to this day by promoting social and economic development doing things right.