A New Governance and Sustainability Framework

By: Philip Marcovici, Kenneth T Goh and Iraj Ispahani, STEP Journal, published 2022

Applying circular economy principles to family business and wealth stewardship can provide a new approach to governance frameworks for wealth- and business-owning families. Circularity, in broad terms, means both avoiding and finding value in waste – not only of natural resources, but also of the human resources within families, including family members not directly involved in the family business, but who have a stake in the future and who need to support those in more active roles. Such family members highlight the kind of paradoxes families face – should a family member be channelled into working in the family business or allowed (and encouraged) to pursue their own careers, reflecting their personal interests and aspirations?

Philip Marcovici, Kenneth T Goh and Iraj Ispahani, 2022

This report “Circular Economy Principles for Family Business and Wealth Stewardship: A New Governance and Sustainability Framework,” offers a transformative approach to addressing the critical gap between the internal governance of family and business interests in sustainability dialogue. By applying circular economy principles, this report provides a novel framework that not only avoids waste of natural and human resources but also supports all family members in contributing their unique skills to the family business. Discover how circularity can enhance family governance, wellbeing, and spiritual capital, ensuring sustainability and growth for future generations. This report is an useful tool for any wealth- and business-owning family committed to integrating sustainability into their core governance structures.