Alexis du Roy de Blicquy pointed out the focus on inclusive prosperity within the Family Business Network, emphasizing that many family businesses have been in existence for several generations. Some luxury goods companies have even spanned up to 10 generations. These businesses prioritize resilience and a long-term perspective. However, accommodating the new generation’s push for transparency and translating their desire into impactful action remains a challenge.
Alex Friedman discussed three levers for change: government action, religion, and capital flows. As younger people prioritize ESG (Environmental, Social, and Governance) focus, performance, and reporting, capital will flow towards companies that excel in these areas. Businesses with private equity investors, bank lending, and listed customers will face pressure to be transparent on climate change, the environment, human rights, and social inclusion. Tools have been developed to help businesses understand their environmental impact, report on it effectively, and implement improvement programs to meet stakeholders’ expectations.
In summary, the landscape for family businesses is evolving as the next generation brings a renewed focus on ESG principles. Companies with a long-standing history must adapt to meet the transparency demands of investors, lenders, and customers. By embracing these changes and implementing sustainability measures, family businesses can ensure their long-term success in a shifting market environment.
