Have Your Values Created the Ideal Corporation?
Family values permeate family businesses. As you look at larger companies as examples of how to run your business, keep in mind that your values may set the standard for them.
Business Week recently devoted much of a recent issue (August 26, 2002) to discussing “25 Ideas for a Changing World.” Idea number one dealt with the “The Ideal Corporation.” Here’s what the magazine offered:
“The single-minded for on ‘shareholder value,’ which measured performance on the sole basis of stock price, will diminish. Instead, companies will elevate the interests of employees, customers, and their communities. Executive pay, which clearly soared out of control in the past two decades, is already undergoing a reassessment and will likely fall back in an effort to create a sense of fairness. And corporate cultures will change in a way that puts greater emphasis on integrity and trust ….
. . . . The first task of the post-Enron corporation is to acknowledge that a company’s viability now depends less on making the numbers at any cost and more on the integrity and trustworthiness of its practices. In the future, leadership that preaches this new ethos and reinforces it through value-driven cultures will be far more likely to reap the rewards of the changing marketplace.”
Once again, the characteristics of good family businesses are held up as the ideal for all corporations. Fortunately, while the practices described are easy to talk about, they are difficult to achieve … and since such behavior is more likely to be achieved across generations, family businesses hold the advantage.
Articles purchased or downloaded from Family Business Consulting Group® are designed to provide general information and are not intended to provide specific legal, accounting, tax or other professional advice. Since your individual situation may present special circumstances or complexities not addressed in this article and laws and regulations may change, you should consult your professional advisors for assistance with respect to any matter discussed in this article. Family Business Consulting Group®, its editors and contributors shall have no responsibility for any actions or inactions made in reliance upon information contained in this article. Articles are based on experience on real family businesses. However, names and other identifying characteristics may be changed to protect privacy.
The copyright on this article is held by Family Business Consulting Group®. All rights reserved.
Articles may be available for reprint with permission. To learn more about using articles for your publication, contact firstname.lastname@example.org.