TITLE:
Conflict between Family and Business Interests Is a Challenge for the Sustainable Economy as Social Responsibility
AUTHORS:
William Marcelo Ponce Iturralde, Marco Vinicio Cevallos Bravo, Armando Miguel Quintana Sánchez
KEYWORDS:
Family Business, Interest Conflict, Social Responsibility, Sustainable Economy, Efficient Management
JOURNAL NAME:
Open Journal of Business and Management,
Vol.12 No.5,
September
4,
2024
ABSTRACT: Family businesses are the oldest productive structure of humanity, as such they maintain a predominant role in the economy, they are definitely the backbone of the production of many countries in Latin America, as they represent between 70% and 80% of the domestic product. rough. The term “family business” is generally associated with a small business in a specific location that has been in a family for several generations. They are commercial organizations, in which the members of a family make strategic decisions and that generally have or meet two conditions: One or two families own more than 50% of the ownership of the Company, or; Family members hold a management position within the Company. The members of the Family consider that the succession of the company will pass to the second generation and the members do not necessarily work in the Company; Thus, we can find small, medium and large, in terms of size. The important thing in family businesses is knowing how to distinguish the different subsystems that exist in the family and the company, as well as managing their relationship so that the company can develop over time. The objective of this scientific contribution is to demonstrate the most important criteria regarding the conflict between family and business interests, which represents a challenge for economic sustainability as social responsibility. In this sense, this document addresses the following points: i) Literature review. ii) Management Control Systems for family businesses. iii) Some rules to comply with in the management of family businesses. iv) Advantages, disadvantages and conflicts in family businesses. v) More frequent conflicts.