Public trust is higher for family businesses than any other type of business, a worldwide survey has found.
The 2014 Edelman Business Barometer revealed that trust in family-owned firms was around 71 per cent globally, putting the family business sector ahead of SMEs, publicly traded companies, big businesses and state-owned operations.
Trust in family firms in the European Union was higher than the global average, at 76 per cent. In North America and Latin America, family firms achieved the highest trust ratings, scoring over 80 per cent.
Privately owned businesses were also viewed as more responsive to customer needs, more entrepreneurial, more innovative and offering higher quality products and services.
The Trust Barometer – which defines trust as “how much you trust the institution to do what is right” – is produced annually by global PR firm Edelman. For the 2014 survey, it questioned around 1,000 adults in each of 27 countries, including the UK.
Mark Hastings, director general of the UK’s Institute for Family Business, said: “Family firms have a strong track record on long-term investment, corporate responsibility and a commitment to outstanding products and customer service. We are pleased, but not surprised, to see that these qualities are recognised and appreciated by the general public.
“British family firms include some of the most well-known and well-loved brands in the world. Employing more than 9.2 million people, the family business sector is the backbone of our economy.”
At Palmers, we are experienced in working with family businesses and can provide expert advice to support their development and growth, on issues including succession planning, shareholder and partnership agreements and family dispute resolution. For more information, please visit our website or contact BJ Chong.