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Family firms: Preordained to be governed by passion and purpose

Family firms in India, on average, have a greater than 50 percent stake in their firms, making them personally invested in the reputation of the business, its longevity, and image as a socially responsible, sustainable contributor to society.

March 29, 2022 / 06:44 PM IST
Business families have the management control to implement required changes at the strategy and operational level to adopt ESG-friendly practices (Photo: Pexels)

Business families have the management control to implement required changes at the strategy and operational level to adopt ESG-friendly practices (Photo: Pexels)

SOUGATA RAY, NUPUR PAVAN BANG & NAVNEET BHATNAGAR

In the face of the challenge posed by phenomena such as global warming, climate change, poverty and inequality, and rapid depletion of natural resources, calls have grown louder for putting stakeholder capitalism over shareholder capitalism that has been practiced by companies for ages.

Social and political unrest in many countries, increased frequency of natural disasters, and finally the COVID-19 pandemic have laid bare the fault lines on which the global economic order rests and vulnerabilities of modern societies.

These developments reinforce the urgent need for companies to widen their canvas of responsibility, do more good, and do good for more constituents by embracing the sustainable development goals (SDGs) of the United Nations.