When he was attending his grandfather’s funeral, Robert Pasin, the CEO of Radio Flyer, was overwhelmed by the outpouring of affection and respect for the family patriarch, who had originally founded the third generation family business, which manufactures toys. “All these people who worked in the factory, all these suppliers, they told me stories about my grandfather. His word was his bond. One supplier told me that they’d never even had a signed contract, just a handshake agreement. I remember feeling proud and grateful that that kind of person had established this company.” It was a lesson that Robert had absorbed over the years watching both his grandfather and father run the business, one that became part of his DNA. “When you start out with really good values, it’s much easier to maintain them,” Pasin says.
5 Signs That Your Family Business Might Have an Ethics Problem
Research shows that family businesses are more susceptible to crossing the line.
May 28, 2019
Summary.
In theory, family businesses are well-positioned to push back against the temptations that drive companies to step over ethical boundaries. However, managers in every kind of company can be tempted by marginal thinking — the idea that “just this once” I’ll do something a little shady. There are five warning signs that your family business is in jeopardy of heading down the wrong path: 1) You lose the full family narrative. 2) You think “professionalizing” the business means taking the heart out of it. 3) You only allow “credentialed” people in the room for key decisions. 4) You start defining yourself and your family through money. 5) Profit becomes your primary motive.
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Avoid integrity traps in the workplace.
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New!
HBR Learning
Ethics at Work Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Ethics at Work. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Avoid integrity traps in the workplace.