Has your company helped Ukraine - and told people about it?
Lego and Bestseller have done something remarkable. They have donated hundreds of millions to relief organizations that help Ukrainians affected by war.
And we know this because they have been open about their initiatives.
The generosity of family-owned businesses in contributing to the community is nothing new. Many local communities and charitable projects benefit from money raised by family businesses. Less typically, companies tell the general public about their donations.
However, family businesses may have very good reasons to be 'overtly philanthropic'.
Because many of them:
- Are built on core values that are best practiced and reinforced through philanthropy
- Can strengthen their brand by being open about being socially responsible
- Do not have to answer financially to a grey mass of investors
Society benefits when family-owned businesses involve themselves with the community because family owners:
- Control significant financial resources
- Can act more altruistically than, for example, private equity funds
- Can oftentimes respond quickly to a crisis because they have agile decision-making processes
Family businesses should be proud of their philanthropy, whether we are talking about contributions to local sports, social projects or emergency aid to Ukraine. And as long as they follow their values and have their heart in the right place, they can be open about their actions.