Article on Sustainability in Family Businesses Published

Family-owned businesses, particularly in German-speaking countries, are key players not only for the economy but also for society. Because of their cross-generational perspective, sustainability—in the sense of long-term survival—is one of their defining characteristics. Sustainability should encompass both the long-term survival of a company and the associated environmental and social concerns.

Our interviews with CEOs of large family-owned businesses in Germany have shown that sustainability can be achieved in family-owned businesses in a variety of ways. The company’s roots in the region and the associated responsibility toward employees, as well as the family’s reputation, play a central role in this. In many cases, these fundamental interests of family-owned businesses already ensure that social responsibility is upheld. The environmental and social demands increasingly placed on companies must be taken into account if the company’s reputation is not to be permanently damaged. Family businesses are aware of this and often act instinctively to ensure that the company and the family continue to enjoy a good reputation in the future. Although these aspects are not limited to family businesses, they are significantly reinforced by the company’s regional roots and the direct assignment of responsibility.