1. Family Constitution
Family-owned businesses who adopt and implement a family constitution with binding rules are often economically more successful. Moreover, a family constitution can strengthen the “family glue” or emotional cohesion and helps to build the relationship between the family and the company (emotional ownership). It also ensures the long-term sustainability as the family constitution provides guidance on many fronts related to the family matters.
2. Next Generation and Succession Planning
Family business succession is the process of transitioning the management and the ownership of the business to the next generation of family members. The transition may also include family assets as part of the process. Family members typically play a controlling role in both the management succession as well as the ownership succession. As such, the effective integration and management of the family component will have a determining effect on the success of the succession process.
3. Philanthropy
Taking a philanthropic stance benefits your community or global communities, depending on how far your philanthropy extends. But it also benefits your family. Family business philanthropy is a fast-evolving field. The level of philanthropic engagement grows each year around the world. Whilst family-owned companies continue to play an important role in the economy there is also the ongoing challenge of succession to the next generation.
The themes of transition and governance are imperative. Every family business should have a long-term vision that ensures that future generations benefit from it. This is where family business philanthropy comes in.
As more and more family businesses are playing in the global arena, they are also developing a greater global commitment. In which case, it makes sense to seek a more international approach to philanthropy, over and above any charity work for local communities.
