Family business – growth and sustainability

Part 1 of 6

Family businesses are economic entities ideally positioned to lead in the stewardship of ethical and sustainable practices. Legacy and wealth protection have long informed family business strategy and decisions, stemming from the unique blend of family and business – the relational approach.

Family businesses are increasingly aware of the need to operate in a sustainable manner. This includes reducing their environmental impact and promoting social responsibility, while understanding the need for financial sustainability. The KPMG Private Enterprise Global Family Business Network, in collaboration with STEP Project Global Consortium, published a study titled ‘A road well-travelled’ which reflects on how family businesses are guiding the sustainability journey. The findings presented are the product of personal interviews and group discussions with family business leaders across the world. The key findings from this study form the basis for the insights being shared.

Sustainability focus is not new for family businesses

For many family businesses, intentional generation-to-generation value creation is deeply embedded in the family’s values and woven throughout their business model. As such, there is an opportunity for family businesses to play a larger societal role by using their long-term, multi-generational mindset as a roadmap to sustainability for others to follow.

The fundamentals of shared value are a familiar concept, and they’re ingrained throughout the family business model. While the family business may be taking a variety of routes and reaching new milestones at different stages of its journey, the progress made so far should be instructive and an inspiration for organisations of every type.

Sustainability is often thought of as ‘meeting the needs of the present without compromising the ability of future generations to meet their own needs’. Such considerations are not new for family businesses, many of which operate with a sense of duty to create and preserve a healthy, diverse and resilient world for their children and their grandchildren.

For many, investing in sustainability and operating in a sustainable way is not only viewed as the ‘right thing to do’, but it’s also becoming an essential engine of their companies’ growth. An aspiration to leave a meaningful and lasting legacy is one often found at the heart of the family business. In recent years, it has been recognised that adopting sustainability principles and practices is the only way forward to create the world they want for future generations.

Benefits outweigh the costs

Although additional costs and resources may be required, for many family businesses there has been an important shift in thinking away from…

Alan Barr | Head | Private Enterprise Southern Africa | mail me |	Lauren Tuchman | Senior Manager Deal Advisory | mail me |
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