Family firms score highly on trust

People are more than twice as likely to trust family businesses than they are a company listed on the stock market, according to a new YouGov poll for the Institute for Family Business (IFB).

The research, published on 24 July, found that more than half (55 per cent) of those questioned said that being a family firm was important in relation to trustworthiness while just over a quarter (26 per cent) said being listed on the stock market was important.

Strong values were identified as a key factor in the trustworthiness of a business by 88 per cent of respondents and 53 per cent believed family businesses had stronger values than other companies.

The survey also found that 71 per cent recognised that family businesses made an important contribution to the UK economy and 53 per cent that they played an important role in creating employment. A similar percentage (52 per cent) believed they offered higher standards of customer care.

IFB director General Mark Hastings said: “Trust is a critical issue for businesses.  Family businesses not only score well for trust, but have an advantage over other companies.

“Strong values are the key to what makes family firms different. Family businesses pride themselves on carrying strong family values throughout their business practices – maintaining trust is essential when your name is above the door.

“Britain’s family business sector provides more than nine million jobs and produces a quarter of GDP.  They are the backbone of the economy and number many of the UK’s largest and most successful companies.”

Leading family businesses in the UK include Clarks, Dyson, Warburtons, Primark, JCB, Speedo, Glenfiddich, Yorkshire Tea, Aunt Bessie’s, Ginsters, Selfridges, Wates and Walkers Shortbread.

Palmers has extensive experience in working with family businesses and can provide expert advice to help them capitalise on the strengths this structure gives them to support their development and growth.

We can also advise on issues including succession planning, shareholder and partnership agreements and family dispute resolution. For more information, please visit our website or contact BJ Chong.