“Addressing Problems That Tear Families Apart: Why Good Governance Matters for Family Firms” via CIPE Development Blog
Family firms have long been excluded from the debate on good governance, since corporate governance is conventionally viewed as applicable only in the domain of public corporations. Yet only 15 percent of family-owned businesses survive until the third generation, indicating a great need for improved governance.
In his Feature Service article, Mr. A. Razak Dawood, Chairman of the Pakistan Business Council and the former Federal Commerce Minister of Pakistan, addresses crucial problems faced by family firms, such as inadequate focus on preserving their human and intellectual capital rather than just financial assets. He also talks about the ways in which governance in family firms can be improved, starting with the formulation of a statement outlining the purpose, values, and goals of...