It is no hidden secret that promoting family ownership builds trust.
In our everyday work life, we rely heavily on our partners and suppliers. The value of these relationships is irreplaceable as we realise just how many of these firms are family businesses. Family businesses are drawn to family businesses. But it’s much more than that.
Why is it so?
Family businesses have found that the long-term view of family business partners and family business suppliers fosters the best relationships. During the COVID-19 pandemic, this became more evident as many family businesses having the common denominator helped each other through a difficult time. They treated each other like part of an extended family. There is something special about that. It is unique.
Many family businesses actively promote family ownership. The family brand is a signal of their values that reaches employees, customers and suppliers. This type of branding is also used by many non-family businesses (especially startups) that use the term “family” to describe their organization and their teams. Of course, for some of these companies, “family” is more industry jargon or buzzword to promote the idea of the collective. A family is with you during the highs and lows. A family shares your history and your values. It is meaningful, and it is something to be proud of.
Surprisingly some family businesses do not actively promote their family ownership. Many family businesses’ attitudes, outlook and values have earned them the trust and confidence of the public. Increasingly, many organisations recognize that family businesses’ focus on creating long-term value enables them to better balance purpose with profit, support multiple stakeholders and develop values-driven cultures.
In some companies, highlighting family ownership may be a sensitive issue, especially if the business is a major employer in a small community. Some executives and owners may believe they are burdening their family members by prominently broadcasting family ownership. They may feel it impacts how family members are treated and viewed in the community. However, for many family businesses, the benefits of the family brand significantly outweigh the negatives.
Increasingly, family ownership and the values-driven culture it frequently implies is seen as a major benefit to employees, customers and suppliers. This is especially true during a time when the general population is losing trust in “big business” and concerned about the short-term profit focus. Many family businesses would benefit by trumpeting their family ownership, which provides an important signal regarding their values and outlook.
( All factual and statistical information presented in this blog has been obtained from an extract of an article from Familybusinessmagazine.com) Follow us on our Facebook page and Family Business Office website at www.familybusiness.org.mt
At the Family Business Office we can offer you assistance in dealing with family business succession planning issues through incentives supporting advisory and mediation services. Contact us today on [email protected].