Prepared for what lies ahead in tourism
Stay up-to-date with current, independent statistics and information on tourism in the Alpine region.
Family businesses enjoy a high level of trust, but scandals overwhelm tried and tested practices.
Media reports quickly escalate moral missteps into public scandals.
Continuity and hierarchy hinder flexible scandal management in family businesses.
Mindfulness and a culture of error are key to scandal prevention.
Summary of the study
Family businesses think long-term and are seen by the public as having strong values and morals, which gives them greater credibility and significantly more trust than their non-family-run counterparts. However, if unexpected turbulence such as a crisis or scandal occurs, practices that have been established over many years can reach their limits. As part of an applied research project, we have therefore investigated how family businesses deal with scandals and what strategies they use to contain or avoid them. Based on empirical findings, five mindfulness practices for avoiding crises and scandals in family businesses are presented and discussed in the following article.
Key findings of this study
- Family businesses enjoy a high level of trust, but scandals often overwhelm established practices. Media attention quickly escalates moral missteps.
- Typical continuity and hierarchy hinder flexible processes in the event of scandals. Mistakes are sometimes covered up instead of being used as a learning opportunity.
- The close links between family and company make conflict resolution more difficult. Rash explanations often do not lead to the desired result.
- An attitude of mindfulness makes it possible to recognize early signals. Five practices help to prevent and contain scandals.
- Targeted training increases flexibility and resilience in crises. Shifting decision-making authority promotes rapid action.