Alex Friedman, a seasoned journalist, shed light on the growing demand for inclusive prosperity within the Family Business Network. While some family businesses, such as luxury goods companies, have a long history of multiple generations owning, managing and growing their businesses, they often have a resilient and long-term approach to their operations. However, with the rise of younger generations who are driving change and demanding transparency in business practices, these companies must adapt to meet these demands.
Friedman discussed three key levers for change: government action, religion, and capital flows. With increasing pressure from younger generations to prioritize ESG focus, performance and reporting, capital is flowing towards businesses that excel in this area. This shift is putting significant pressure on larger family businesses with private equity investors and significant bank lending to be transparent about their environmental impact and social responsibility efforts.
Despite resistance from some senior members of these businesses who question the need for change after decades of operation, many are finding themselves compelled to disclose their impact on the environment and implement improvement programs to satisfy lenders, investors and customers. Tools are being developed to help businesses understand their environmental impact and report on it effectively.
Overall, Friedman emphasized that transparency is becoming increasingly important for businesses looking to thrive in today’s evolving business landscape. As young people continue to drive change and demand more sustainable practices from companies they support financially or buy from, it is clear that inclusivity will be key to success in the years ahead.
In conclusion, while some family businesses may resist change after decades of successful operation
