In a recent interview, Alexis du Roy de Blicquy emphasized the importance of inclusive prosperity within the Family Business Network. He highlighted that many family businesses have been in existence for multiple generations, with some luxury goods companies spanning up to 10 generations. These businesses emphasize resilience and a long-term view. However, the challenge lies in accommodating the new generation’s push for transparency and translating that desire into impactful action.
In his discussion on leveraging change, Alex Friedman discussed three key areas: government action, religion, and capital flows. As the younger generation prioritizes ESG (Environmental, Social, and Governance) focus, performance, and reporting, capital will flow towards businesses that excel in these areas. Businesses with private equity investors, bank lending, and listed customers will face pressure to be transparent on climate, environment, human rights, and social inclusion. Tools have been developed to help businesses understand their environmental impact, report on it, and implement improvement programs to satisfy stakeholders.
Overall, 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.