Family Businesses should be run like trustees for the next generation: DCM Shriram Group

economictimes.indiatimes.com:

Ajay S Shriram, Chairman and Senior Managing Director, DCM Shriram Limited, opened up about family businesses and emphasised that the enterprise needs to balance its approach like trustees for the next generation.

He added that family businesses are world-class due to their innovation and the supportive ecosystem in which they operate.

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The DCM of Shriram Group underscored the importance of trusteeship and advised to adopt checks and balances in the organisation.

Family businesses are seen to exude a greater sense of commitment and passion in their sphere as they have greater personal stakes involved.

Agility in business decision-making, deep industry insight, mutual trust, employment generation and entrepreneurship development reinforce the dominant position of family businesses. Generally, most family enterprises do not have any direct responsibility to shareholders outside the family, so they have greater flexibility in making decisions that improve the speed of launching new initiatives, changing operations, and evaluating new business opportunities.

He placed importance on corporate governance, laying down objectives, vision and setting value. He emphasised the need for transparency and accountability in family businesses, highlighting the importance of strategic