PwC’s Global Economic Crime and Fraud Survey 2020

Business leaders are talking more than ever about finding the right balance between the profit motive in business and a heightened sense of purpose that runs through the C-suite.

Survey after survey shows that the millennial generation, which makes up a sizeable portion of the workforce in most countries, expects companies to contribute to society, have a clear purpose based on values and be more sustainable. They want to work for companies they feel good about and tend to buy from those that meet their ethical standards.

Although family businesses recognise the challenge of digital technology, that doesn’t mean they are ready for it. One place to start is the board, where a strong combination of directors with the right skills can be hugely beneficial as family businesses look to tackle digitalisation. Another focus can be on millennials, who are the best-educated generation in history and are extremely tech-savvy. Part of your family business legacy will be determined by the way in which the next generation is encouraged to be involved.

Family businesses and private equity are reaching a moment of convergence of interests – on goals, and even values and purpose – at a time when there is an increasing focus on long-term value generation, succession and professionalisation at family businesses. One of the most striking findings is that while 81% of respondents continue to rely more on banks for funding needs, more than a third of family business leaders said they would consider private equity.

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As decision making grows more complex during an accelerated pace of change, family businesses need to implement guidelines and tools to codify their values as a way to make better decisions. And our research shows family businesses that make their values and purpose explicit and measurable, and incorporate them into strategic plans, see better returns and greater longevity.

Our survey findings show 70% of respondents felt strongly that having a clear sense of agreed-on values increased revenues and profitability. As many as 75% felt that having a clear sense of values gave them a competitive advantage. At the same time, only 49% of respondents actually had values articulated in written form. This rose noticeably to 53% among businesses generating double-digit growth. The message is clear: adopting an active stance towards values really pays off.