Family businesses with a company purpose connected to the United Nations’ Sustainable Development Goals are performing better than their peers, says a PwC report.
The professional services group found in its global family business report that nearly three-quarters of family businesses that experienced double-digit growth over the last financial year have a clear set of family values and an agreed purpose for the business.
Polling more than 2,000 family businesses across 82 countries, the report reveals double-digit sales growth at 43% of family businesses globally in the last financial year, up from 21% in 2021. The report hinted that the main reason for the bounce back was a recovery from the COVID pandemic period.
It appears, according to PwC, that having a clear sustainable growth objective, compatible with UN guidance was more likely to generate stronger growth.
“There is clear evidence that being very advanced in having an agreed and communicated ESG strategy correlates strongly with success and other positive attributes,” said the report. “Half (50%) of those surveyed who are very advanced in having an agreed and communicated ESG strategy saw double-digit growth (42% for family businesses not very advanced in this area).”
PwC said despite the current difficult economic situation, family businesses are committed to protecting the core business, covering costs, and surviving, rather than pursuing digital capabilities and introducing new products and services. Just over a third (36%) of family businesses say they are focused on attracting and retaining talent – despite the understanding that employee trust is critical to business success.
“Family businesses are showing they can grow by welcoming change and building trust with digital communication and diverse boards – even in a challenging landscape, said Peter Englisch, global family business leader for PwC.
“To continue this trajectory, firms will need to re-orient to focus on delivering value not just for customers, but for society. Transformation, purpose, and legacy are no longer converse, but intertwined.”