Enterprising families are known for having a majority of responsible owners. As you can see here, responsible ownership is the difference between working for your own interests, and working for the larger group interest. It entails responsible practice towards other owners, towards the business, towards stakeholders and towards the community at large(i.e. social practices). Having responsible owners is one of the key success factors in long-term sustainability and something you should be proud of!
The Patterns Behind Responsibility & FB Success
Serving Group Interest
Degree Responsible Ownership
Serving Own Interest
Responsible Practice
Towards Other Owners
Towards the Business
Towards Other Stakeholders
Responsible Ownership
Is defined as those ownership behaviors which contribute to the collective group of owners, as opposed to behaviors that selectively serve the owner’s own interests.
Build a unified FB structure
Define roles and responsibilities
Foster internal communication
Long-term view
Psychological ownership
Common vision
Commitment to growth
Social responsibility
Have will to delay dividends
Act professional
Enhance interpersonal relationships
Serve as a resource
Keep informed
Work proactively for the FB
Articulate powerful vision
Define succession plan
The Key Pattern Behind Responsible Ownership
- Understand and value the goals of the firm
- Be open and honest about each other’s intentions
- Provide role models of respect
- Provide appropriate levels of involvement
Source: EFBI, 2006: Responsible Ownership of the Family Enterprise
