The US economy’s sturdy pillar: family firms

The campaigning to win American votes in Tuesday’s elections has been highly partisan. But there’s overwhelming consensus on one issue: Eighty-seven percent of voters, according to a Gallup survey last week, agree that the economy is “very” or “extremely” important in these elections. Their concerns range from inflation to anticipated job losses from the use of artificial intelligence.Yet amid the economic turbulence, a substantial share of business is holding steady. And it is doing so by hewing to a balance of profitability, purpose, and a people-first approach. These are the often highly successful but not very visible family-owned companies, which account for 25% of U.S. firms and employ 23% of the workforce. They typically focus on consistent, long-term progress built on consensus and a shared respect and purpose that encompasses all levels – staff, managers, owners, and customers. It’s an ethic and approach that could also be translated to many areas of life, from boardrooms to citizen forums.“At a time [of] ... speed, scale and disruption,” according to banker and business consultant Byron Trott, “family businesses reflect a different model of success, one grounded in endurance, stewardship, resilience and trust.”Referring to “the quiet engine driving the economy,” Mr. Trott wrote in Forbes magazine this year, family-owned firms “think in decades, not quarters. They care deeply about culture and continuity, ... and the next generation that will inherit the consequences” of today’s decisions. A firm’s performance doesn’t need to always focus on the bottom line. In October, The Wall Street Journal highlighted The Gund Co. in St. Louis, where “hundreds of executives have made [a] pilgrimage” to learn how to replicate its success and sustainability – of double-digit annual growth over a decade, without ever laying off an employee. The third-generation CEO, Steve Gund, conceded that his approach might sound “touchy-feely,” but wasn’t shy about sharing it.“One of my life’s callings is to make sure that we get this message out,” he told visiting peers at a Gund branch in Wisconsin. “Business is not just about driving profitability for the shareholders, it is absolutely about taking care of people.”Family-owned firms such as his – as well as the much better-known In-N-Out Burger, for instance – emphasize internal transparency and a commitment to helping every worker succeed. At the California burger chain, it’s been reported in Forbes, if the difficult decision is made to let an employee go, “supervisors are asked to look in the mirror and ask what they could have done differently to keep that from happening.” Deepen your worldviewwith Monitor Highlights.Politics with respectGet political stories with respectful analysis.There‘s a world of new ideas in everyBooks newsletter.There‘s more to life, enrich yours withCulture & Learning weekly.Follow humanity‘s discoveries withScience & Nature stories in your inbox.Gain a spiritual perspectivefrom the stories in your inbox.Want to understand the deeper impact of critical events? Learn the Monitor‘s insight.Already a subscriber? Log in to hide ads. A global survey of more than 1,300 business owners last year confirmed “a powerful link” between purpose and performance. According to consulting firm PwC, family-owned firms with a clear purpose and strong values were “more attuned to innovation, long-term vision, and stakeholder trust.”Such values, according to business consultant Trott, ripple out to support “livelihoods, institutions and the strength of local communities.” ALREADY A SUBSCRIBER? LoginReal news can be honest, hopeful, credible, constructive.The Christian Science Monitor was founded in 1908 to lift the standard of journalism and uplift humanity. We aim to “speak the truth in love.” Our goal is not to tell you what to think, but to give you the essential knowledge and understanding to come to your own intelligent conclusions. Join us in this mission by subscribing.