Berghmans Lhoist Chaired Professor in Entrepreneurial Leadership

1. Family Business Stewardship Values Antonio Puig on his death bed reminded his sons about their core family value. Stay together, it is impossible to break a bundle of sticks when they are tied together. “You see my meaning. Our family union is our strength.” Antonio Puig, founder of the Puig fashion and cosmetics empire, died in 1979 Professor Randel S. Carlock Berghmans Lhoist Chaired Professor in Entrepreneurial Leadership Founding Director, Wendel International Centre for Family Enterprise INSEAD – Asia, Europe and the Middle East

2. Family Values Influence Business Culture Family values are principles a group of related individuals hold and stand by when making decisions. A business culture is a collective sets of experiences and assumptions anchored by organizational relationships that shapes individual behavior. Life-time employment Entrepreneurship Family values are shared beliefs that come from life experiences, DNA of a family group or clan Business culture are the External experiences of a group Of employees based on their shared organizational experiences Reinvesting profits Employee ownership Long-term view Integrity Stewardship Respect Social responsibility Recognition & Rewards Talent development

3. The Mogi Family Constitution Written 200 years ago • Sincerity first and profits will follow. Neglect neither • Take care to preserve the harmony and unity of the household • Avoid luxury and cultivate simplicity and earnestness • Avoid matters not connected with the family business • Learn to make money and not to lose it • Competition makes for progress, but avoid reckless competition • Attend to your health. Eat simple foods no different than that taken by your employees • Economise on personal expenses and give what remains to charity, taking care to preserve a sufficient estate for your successors • Cultivate a positive attitude toward making money and be cautious in times of uncertainty • Each branch selects the most qualified son to work in the business • Twice a year call a family assembly, praise family members according to their character and not according to their profits

4. Chandria Family Values: Building a Strong Family Chandria Family Values: Building a Strong Family To maintain the joint family system modified to meet changing business conditions. To maintain a high moral code of conduct, honesty and values. To cultivate and strengthen the bonds of trust in each other and in the family. To recognize that continuing family security and growth flows from hard work, initiative and frugality. To utilize human and financial resources collectively. To maintain family unity. To maintain effective guidance of family wealth. To maintain the pattern of decision making by consensus of opinion. To accept, honour and follow at all times decisions arrived at by consensus. To respect, honour and follow the leadership of the family. To practice individually and collectively the qualities of respect, tolerance, compassion and humility. To maintain respect for seniority and for each other. To give each individual maximum opportunity morally, educationally and professionally to develop both for the family and for himself. To dispense with the traditional practices of inheritance and the resultant inequalities. To cultivate, practice and strengthen at all times for the benefit of everyone the family atmosphere of friendship, love, help, understanding, communication and affection. To endeavour that members may enjoy the greatest measure of happiness possible during the whole of their lifetime. To enable senior members to reside or retire in their countries of choice. To practice and follow this code truly and visibly and to encourage in the younger members on a developing basis the same attitudes and philosophy.

5. Why Values Important for a Family Business • Values are the rules for living and working together • Create a code of behaviour that supports a shared vision • Create shared approach to decision making • Create a legacy • Build knowledge and trust in the business and the family • Values “talk” behaviours “walk”…….

6. Family Stewardship Responsibilities Stewardship is passing your children family assets* that are more valuable than when you received them (*wealth, reputation, emotional well being, spirituality). • Ownership is not a right; it’s an earned opportunity for service. • Owners are responsible for protecting and sustaining what is entrusted to them. • Owners need to be courageous in addressing and resolving conflicts or problems that threaten family relationships or business’ performance. • Owners are committed to developing their talents and capabilities as owners and leaders. • Owners make tough decisions that in the long-term benefit all stakeholders over any individual or group.

7. The Family Model has Benefits Family constraints have their benefits On Management Column By Philip Delves Broughton One of the keenest criticisms of modern business is that it places unreasonable burdens on families. Demanding employers and the proliferation of always-on communication devices, such as the BlackBerry, plunder whatever morsels of family life remain. Children are left to scratch out their own emotional educations when both parents must work to sustain a middle-class way of life. It seems paradoxical that the micro-problems of making a living while raising a family seem to be intensifying while the macro-benefits accruing to families that pile up wealth over generations seem to be expanding. Technology was supposed to threaten elites by making information and networks freely accessible. Yet families, those most impenetrable of secret societies, remain as strong as ever in the business world. What can the managers of non-family businesses learn from their success? Randel Carlock and John Ward, professors at Insead and the Kellogg School of Management respectively, have studied family businesses around the world and report their findings in a new book, When Family Businesses are Best. The best family businesses excel at two things: balancing emotion and reason; and retaining a long-term perspective.

8. Stewardship Means Future Generations are the Legacy The highest level of leadership is education and personal development of the next generation. There are limited competitive advantages built on resources other than human energy, talent and commitment. The 20th century was about controlling physical assets securing financial capital and directing human resources: the 21st century requires a different paradigm. Younger people are keeping score with a new metric that counts service, mastery and happiness as the measure of satisfaction and empowerment. Providing impactful education and personal development is the ultimate act of organizational reward and personal recognition in this new working world. The future generations will measure the legacy they inherit in terms of their preparation, contribute and service more than in fame, wealth or power.