Search results

Family governance is a topic of substantial practical relevance that merits much more attention in family business research (Gersick & Feliu, 2014; Suess, 2014). The purpose of this book chapter is to use the framework of a fair process to gain a better understanding of how family governance practices can help an entrepreneurial family firm flourish. Central to the analysis is the case of a 100-year-old entrepreneurial family firm that will serve as a best practice. Interviews with key members of the family and the business were held, and secondary data were gathered and analyzed. The chapter starts with a theoretical outline of the family as strategic resource and the family governance as a mechanism to manage this strategic resource. The principles of fair process are introduced as an underlying framework for the well-functioning of family governance practices. This is followed by the introduction of the case and the discussion of the key findings. This chapter ends with some concluding remarks.

This chapter presents the current research status of family constitutions from an economics perspective. It locates the family constitution as part of the family and business governance structure of a family firm and the owner family. The typical structure and content of a family constitution are introduced. The chapter focuses on the status of research about family constitutions and provides a structured map for future research. With regard to extant research, it must be stated that the stock of literature is small. The contributions to literature are categorized in surveys; conceptual contributions; survey data; small sample, qualitative, empirical studies; and big sample, quantitative, empirical studies. The latter group includes three studies with a separate family constitution variable. This small number symbolizes that the family constitution still is an under-researched area. Therefore, family constitution research is far away from being able to answer central questions of advice-seeking owner families like, for example, whether a family constitution affects family performance, firm performance, or both; or whether the development process of a family constitutions disposes of an effect on family or firm performance separately from the hypothesized effect of the family constitution document.

This chapter demonstrates that social business models do not meaningfully prioritize or impose accountability to “social good” over other purposes in ways that (a) best protect against owners changing their minds or entry of new owners with different priorities and (b) enable reliable accountability over time and across circumstances. This chapter further suggests a model – a “social primacy company” – that actually prioritizes “social good” and meaningful accountability to it. This chapter thus clarifies circumstances under which existing models might be most useful and are not particularly useful, especially as investors, entrepreneurs, employees, regulators, and others pursue shared, common understandings about purposes, priorities, and accountability.

This chapter focuses on governance as a key element of the safeguarding system of the family enterprise. The management is in charge of the company’s performance in terms of profit and growth. The governance system is designed to secure value protection by designing a robust leadership system, monitoring and advising management, reviewing critical decisions, and providing fail-safe solutions in case of serious malfunctions of the management system. This chapter develops a typology of critical elements which could endanger the development of the company, including conflicts and disruptions among the owner group. Results of recent research on the root causes of the downfall of family enterprises are presented. Finally, a concept of a three-layer protection system is developed with the aim of providing stability for longevity.

Advances in Big Data, artificial Intelligence and data-driven innovation bring enormous benefits for the overall society and for different sectors. By contrast, their misuse can lead to data workflows bypassing the intent of privacy and data protection law, as well as of ethical mandates. It may be referred to as the ‘creep factor’ of Big Data, and needs to be tackled right away, especially considering that we are moving towards the ‘datafication’ of society, where devices to capture, collect, store and process data are becoming ever-cheaper and faster, whilst the computational power is continuously increasing. If using Big Data in truly anonymisable ways, within an ethically sound and societally focussed framework, is capable of acting as an enabler of sustainable development, using Big Data outside such a framework poses a number of threats, potential hurdles and multiple ethical challenges. Some examples are the impact on privacy caused by new surveillance tools and data gathering techniques, including also group privacy, high-tech profiling, automated decision making and discriminatory practices. In our society, everything can be given a score and critical life changing opportunities are increasingly determined by such scoring systems, often obtained through secret predictive algorithms applied to data to determine who has value. It is therefore essential to guarantee the fairness and accurateness of such scoring systems and that the decisions relying upon them are realised in a legal and ethical manner, avoiding the risk of stigmatisation capable of affecting individuals’ opportunities. Likewise, it is necessary to prevent the so-called ‘social cooling’. This represents the long-term negative side effects of the data-driven innovation, in particular of such scoring systems and of the reputation economy. It is reflected in terms, for instance, of self-censorship, risk-aversion and lack of exercise of free speech generated by increasingly intrusive Big Data practices lacking an ethical foundation. Another key ethics dimension pertains to human-data interaction in Internet of Things (IoT) environments, which is increasing the volume of data collected, the speed of the process and the variety of data sources. It is urgent to further investigate aspects like the ‘ownership’ of data and other hurdles, especially considering that the regulatory landscape is developing at a much slower pace than IoT and the evolution of Big Data technologies. These are only some examples of the issues and consequences that Big Data raise, which require adequate measures in response to the ‘data trust deficit’, moving not towards the prohibition of the collection of data but rather towards the identification and prohibition of their misuse and unfair behaviours and treatments, once government and companies have such data. At the same time, the debate should further investigate ‘data altruism’, deepening how the increasing amounts of data in our society can be concretely used for public good and the best implementation modalities.

Rights and duties are involved in every area of business and markets, and society and governments. Most often, rights and duties involve serious ethical and moral issues of conflict. A good theory of the ethics of rights and duties, obligations, and responsibilities will empower us to understand the impact of our actions on various stakeholders. Additionally, a deep understanding of rights and duties could help us to analyze better the impact of our executive actions on various stakeholders and, in particular, to fathom the damaging effects of rights and duties violated by the man-made current financial crisis when seen from an ethical and moral point of view. Our coverage on the ethics of corporate rights and duties will comprise of two parts: Part 1: The Nature of Corporate Business Rights and Duties, and Part 2: Respecting Corporate Rights and Duties. The chapter will feature Newcomb Wellesley Hohfeld’s framework of legal interests such as claims, privileges, power, and immunity and its various applications to contemporary market and corporate executive situations. We illustrate the theory of rights and duties using several cases from the current turbulent markets.

The chapter deals with the interface between the law of succession and corporate law and explains the completely different objects of these two fields of law. Succession law tries to shift and contribute assets to the successors, whereas corporate law focuses on the well-being of the company. However, in a family business, it is necessary to find legal, social, and psychological techniques to combine these two areas and to establish strong and binding relations. This is the function of shareholder agreements and family constitutions.

Technology-facilitated abuse, so-called “tech abuse,” through phones, trackers, and other emerging innovations, has a substantial impact on the nature of intimate partner violence (IPV). The current chapter examines the risks and harms posed to IPV victims/survivors from the burgeoning Internet of Things (IoT) environment. IoT systems are understood as “smart” devices such as conventional household appliances that are connected to the internet. Interdependencies between different products together with the devices' enhanced functionalities offer opportunities for coercion and control. Across the chapter, we use the example of IoT to showcase how and why tech abuse is a socio-technological issue and requires not only human-centered (i.e., societal) but also cybersecurity (i.e., technical) responses. We apply the method of “threat modeling,” which is a process used to investigate potential cybersecurity attacks, to shift the conventional technical focus from the risks to systems toward risks to people. Through the analysis of a smart lock, we highlight insufficiently designed IoT privacy and security features and uncover how seemingly neutral design decisions can constrain, shape, and facilitate coercive and controlling behaviors.

This focal chapter deals with the understanding of important ethical theories used in executive moral reasoning such as teleology, deontology, distributive justice and corrective justice, virtue ethics versus ethics of trust, from the perspectives of intrinsic versus instrumental good, moral worth versus moral obligation, and moral conscience versus moral justification. Ethical and moral reasoning will power executives to identify, explore, and resolve corporate moral dilemma, especially in the wake of emerging gray market areas where good and evil, right or wrong, just or unjust, and truth and falsehood cannot be easily distinguished. We focus on developing corporate skills of awareness of ethical values and moral imperatives in current otherwise highly commoditized and turbulent human, market, and corporate situations. The challenges of morality are multifaceted and diverse. Professionals usually have self-discipline and self-regulation abilities, ego strength, and social skills. Morality in the professions is not concerned with the issues of rudimentary socialization; rather, the issues involve deciding between conflicting values, where each value represents something good in itself. There are problems in both knowing what is right, good, true, and just on the one hand, and on the other hand, in doing what is right and avoiding wrong, doing good and avoiding evil, and being fair and just while avoiding being unfair and unjust. Several contemporary cases will illustrate the challenging dimensions of ethical and moral reasoning, moral judgment and moral justification embedded in executive decision processes, and corporate growth and profitability ventures.