By: Dhania Puspa Purbasari

Family businesses have long been the backbone of the global economy, including in Indonesia. As key players in various economic sectors, family businesses bear significant responsibility not only to maintain profitability but also to ensure sustainability for the future. Amid increasing attention to environmental, social, and corporate governance (ESG) issues, the transformation toward sustainability has become a key trend that family businesses must adopt.

Why Is Sustainability Important for Family Businesses?

Sustainability is no longer a mere option; it is a strategic necessity to ensure long-term business continuity. Several reasons why sustainability is crucial for family businesses include:

• Modern Consumer Demands: Today’s consumers are increasingly concerned about the environmental and social impact of the products or services they use. Family businesses that adopt sustainability principles tend to be more favored as they are seen as responsible and aligned with modern consumer values.
• Stricter Regulations: Governments in various countries, including Indonesia, are tightening regulations related to environmental and corporate governance. Family businesses that proactively adopt ESG practices can avoid sanction risks and maintain their reputation.
• A Legacy for Future Generations: As entities that often think long-term, family businesses have a responsibility to pass on healthy and sustainable companies to the next generation. Transforming towards sustainability is a vital step in achieving this goal.

Steps to Transform Towards Sustainability

The journey to sustainability in family businesses is not instantaneous. It requires well-thought-out strategies and commitment from all parties. Key steps include:

• Embedding Sustainability Values into Corporate Culture: Sustainability values should become part of the company’s culture. This can start by educating family members and employees about the importance of sustainability and ensuring that every business decision considers its impact on the environment and society.
• Adopting Sustainable Business Practices: Family businesses can implement various sustainable practices, such as using renewable energy in operations, reducing waste, promoting recycling, and prioritizing the use of environmentally friendly raw materials.
• Involving Younger Generations: Younger generations within the family often have greater awareness and enthusiasm for adopting sustainability principles. They can drive this transformation by bringing fresh ideas and technological innovation.
• Collaborating with External Parties: Partnerships with NGOs, local communities, and professional organizations can help family businesses understand and implement appropriate sustainability standards. Consulting with experts can also provide deeper insights into effective sustainability strategies.
• Leveraging Technology: Technology plays a critical role in supporting sustainability. From using software to manage carbon footprints to automating production processes, technology can help family businesses reduce negative environmental impacts while increasing efficiency.

Challenges in Implementing Sustainability

The transformation toward sustainability is not without challenges. Common obstacles include:

• High Initial Costs: Investments in environmentally friendly technology or sustainable practices often require significant upfront funds.
• Resistance to Change: Not all family members or employees support significant changes, especially if they feel comfortable with old ways of working.
• Lack of Knowledge and Resources: Many family businesses lack access to sufficient information or resources to understand and implement sustainability effectively.

Overcoming Challenges and Moving Forward

To overcome these obstacles, family businesses can take steps such as conducting training to raise awareness about sustainability, seeking green financing or investment partners, and engaging business consultants to help design and implement effective sustainability strategies.

Conclusion

The transformation towards sustainability is a crucial step that family businesses must take to remain relevant and competitive in the modern era. By adopting sustainability principles, family businesses not only ensure business continuity but also contribute positively to society and the environment.

To support this transformation journey, Qando Qoaching offers specialized consultation services for family businesses. With a structured approach and support from expert teams, we are ready to help you design sustainability strategies tailored to your business needs.

Visit our website at campsite.bio/qqgroup for more information and schedule a consultation session with us. Together, we can create real change toward a better future.