Monday, 3 April 2017

CSR & Family Businesses

Back in the days, Corporate Social Responsibility had a more philanthropic approach for businesses that were then mainly family-run, like the Tatas & Birlas. However, CSR has always remained an integral part of these business, that have now grown to become MNCs in our days.Whether CSR has been one of reasons for their growth, needs to be carefully researched - but as an established fact, CSR increases customer loyalty and brand awareness and shareholders, for that matter the stakeholders, keep their confidence on such companies.

A joint report by Citi Private Bank and UK-based family business information provider Campden Wealth Research ( says that fast-growing, mid-sized family businesses around the world have identified corporate social responsibility (CSR) as an important element for their success. According to the report, doing good for society and the environment, and philanthropy helps consumers associate and build loyalty with brands. It also says these businesses consider CSR as a way to engage the next generation of family members.

What may actually drive CSR in family businesses is their relationship with different company stakeholders and the fact that the family itself is a stakeholder, especially when it comes to the reputation sustainability with regard to the future generations. Though there is no conclusion on whether family firms are more concerned with responsible behavior or not, their long term orientation and the set of unique values give them a special drive in this area.

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