Paul Andrews - Founder & CEO, Family Business United

Are Philanthropy & Community Engagement Integral Parts Of Being A Family Firm?

Family businesses worldwide are frequently regarded as fundamental pillars of their localities, not only boosting the economy but also enhancing social and cultural aspects. A significant element of this involvement is their participation in charitable activities and community projects. For numerous family-run companies, philanthropy is not merely an additional task but a

fundamental part of who they are.

We asked our Global Family Business Think Tank Panel if they thought that philanthropy and community engagement are important to family businesses and and integral part of the essence of who they are as a family firm.

Yes - 94%
No - 6%

Again, our panel were strongly in agreement that philanthropy and community engagement are an integral part of what makes family businesses exactly what they are today.

THE THOUGHTS OF OUR ‘THINK TANK’ REPRESENTATIVES:

“Demonstrating community values is just as critical as creating financial values for family businesses. Working with them, I’ve found that some achieve this by partnering with local and national organisations, while others have a more focused approach and are signatories to international bodies. It’s heartening to see how so many family businesses are committed to making a positive impact on society.”

Robert Holt

Partner, Audit & Assurance Services, Grant Thornton LLP

“In the Moroccan context, philanthropy and community engagement are considered important to family businesses, integral to defining their identity and purpose. It’s even religious and divine in some cases.”

Hamza Nidaazi

Researcher, Cadi Ayyad University

“Family firms are far more likely to be fully engaged with the local community than non-family firms by virtue of their heritage and history.”

Thomas Hainsworth

Family Council Member, A.W. Hainsworth & Sons

“Many family businesses will be firmly embedded in their local communities supporting charities and not for profits that often are close to their heart and have personal connections with the family and their employees.”

Christian Mancier

Partner and Head of Family Business, Gorvins Solicitors

“Philanthropy and community engagement help family businesses build trust and goodwill among all their stakeholders and provide tangible ways to express and perpetuate the family values, demonstrating the family commitment to making a positive impact beyond just financial success.”

Salvatore Sciascia

Professor, Cattaneo University - LIUC

“Philanthropy and community engagement build relationships. The relationship of the family business to its associate, and the customers and communities it serves is a key element of helping the family business and family members understand their purpose and their responsibility as a firm.”

Charlie Leichtweis

Founder and Managing Director, Experts in How LLC

“Family businesses contribute not just to a country’s economy but also to the social wellbeing of the community around them. Philanthropy is one of the ways family businesses create a sense of purpose, not just within families but also among employees, which helps build a better culture and sense of belonging in the organisation.”

Abirami Duraisamy

Executive Coach, Outshine Outplay

“Leaving a meaningful legacy is at the heart of family business. Community engagement is also a way to bring all family business members together without the politics and it can help the younger generation to understand and appreciate their responsibility to the wealth they enjoy.”

Anita Brightley-Hodges

Family Business Adviser

“Community service and philanthropy supports development of the family’s culture and values which will extend to the business. It also provides participation opportunities for family members who may not qualify or desire operating business leadership positions, but desire connection to the family enterprise.”

George Isaac

Founder & President, GAI Capital

These results were part of the 2024 Global Family Business Think Tank Report that was published in Autumn 2024.

A copy of the final report is available to download below and is free to Family Business United members and digital subscribers (simply log in to access). If you are not yet a member or digital subscriber and wish to obtain access to the report, you can find out more about becoming a member of Family Business United here or take out a digital subscription to access all areas and content available on the platform including this report here