Is It Important For Family Firms To 'Do Business Right' & Aligned With This Principle?
- Paul Andrews - CEO Family Business United
- Oct 22, 2024
- 3 min read
Over the past few years there has been growing recognition for the need to protect the planet and resources, and to try and minimise the impact of activities on the environment. To that end, we have seen more written about doing business the right way and in many cases, family businesses lead the way in this regard, taking the long-term view, being firmly embedded in the communities in which they operate and acting as stewards for future generations.
We asked our Global Family Business Think Tank Panel if they thought that family firms feel that it is important to do 'business right' and make decisions that align with this principle more than their non-family counterparts.
Is It Important For Family Firms To 'Do Business Right' & Make Decisions Aligned With This Principle?
Yes - 87%
No - 6%
Don't Know - 7%
Our panel strongly believe that family firms feel that it is incumbent upon them to do business the right way.
THE THOUGHTS OF OUR ‘THINK TANK’ REPRESENTATIVES:
“This is especially true when business is seen as an extension of the family identity and doing business right has an impact on the community.”
Jeremy Cheng
Founder, GEN+ Family Business Advisory & Research
“I think that progress towards ‘responsible business’ is also a regional phenomenon. Family businesses in Europe are at the forefront.”
Malgorzata Smulowitz
Managing Director, Selenza Generations
“Younger generations are absolutely conscious of their environmental and community impact. I see this as a huge win for all industries and local communities as well.”
Ruschelle Khanna
Family Business Therapist & Consultant, Ruschelle Khanna Consulting
“Leaders of family businesses have a much longer perspective that other types of businesses, because they and their family’s involvement in the business is indefinite, which leads them to be very aware of the environmental conditions and regulations in which their businesses operate.”
Jaime Ale
Director, Ale & Associates
“It is the strength of family business, if correctly harnessed, that they understand that looking after people, planet and profits is necessary to ensure the sustainability of their business and the communities in which they operate. The business needs the community and the community needs the business, where both survive and thrive.”
Creagh Sudding
KPMG Private Enterprise
“Not all family firms operate in the same way, but many family firms have been pioneers in sustainable behaviour and are a true benchmark in this respect. Social and environmental sustainability is in the DNA of most entrepreneurial families, given their long-term orientation and strong sense of legacy.”
Salvatore Sciascia
Professor, Cattaneo University – LIUC
“Family businesses inherently recognise themselves as part of a larger community, setting them apart from profit-hungry organisations. This core belief motivates family businesses to seek different avenues for giving back to the community and is strongly aligned with the principles of conducting business in the right way.”
Sunil Soni
Family Business Advisor, IFBN Consultants
“Family firms are generally more connected to ESG principles, and they do it in practical ways, often quietly and without fanfare, compared to large corporates who are sometimes more interested in letting the world know, rather than direct and measurable impacts on stakeholders.”
Robert Powell
Founder & Managing Director, Family Boards
“Yes, due to the presence of family-centred non-economic goals, which leads them to prioritise the preservation of their socio-emotional wealth.”
Alfredo De Massis
Professor of Family Business & Entrepreneurship, Free University of Bolzano, IMD Business School and Lancaster University
“I think family firms generally think about being better ancestors than their non-family owned counterparts. This ancestral view is long term, sustainable and more likely to focus on doing business right.”
Mairi Mickel
Founder, Mairi Mickel’s Business Families
“I think that progress towards ‘responsible business’ is also a regional phenomenon. Family businesses in Europe are at the forefront.”
Malgorzata Smulowitz
Managing Director, Selenza Generations
Family businesses think about generational impacts, it’s in their DNA to do so. So doing the right thing, being sustainable for future generations and making long term decisions come naturally to a family business. It’s arguable the best, and certainly amongst a minority of business models which has the potential to tackle some of the existential challenges we’re facing today.”
Adam Walsh
CEO, John Good Group
These results were part of the 2024 Global Family Business Think Tank Report that was published in Autumn 2024.
A copy of the final report is available to download below and is free to Family Business United members and digital subscribers (simply log in to access). If you are not yet a member or digital subscriber and wish to obtain access to the report, you can find out more about becoming a member of Family Business United here or take out a digital subscription to access all areas and content available on the platform including this report here
Download the Global Family Business Think Tank Report, Autumn 2024 here
