How family businesses navigate the tension between profitability and social responsibility was explained by the director of Hrvatski kišobran Marin Rogić and the director of OTOS Orthopedic Technology Snježana Biloš at Lider’s conference ‘The Future of Family Businesses’. Both are second-generation family entrepreneurs who have definitely added value to their companies.
– Corporate social responsibility is not a topic to boast about, to throw around, or something like that, but it is a direction without which no company will be able to operate in a few years, and not only will it be feasible due to certification, but the customer will have trust in the product itself if they know that the company is socially responsible – said Rogić, adding that corporate social responsibility is important if you want to survive in the market.
– Once it was said that corporate social responsibility was necessarily linked to costs, but I would say that it is a component of any business and that revenues will be much higher if we behave socially responsibly, even though it will initially be a cost – added Rogić, mentioning that they are not obliged to report on sustainability, but they do it anyway.
That people have become an inevitably important component and that the way owners and directors relate to employees is part of corporate social responsibility is the opinion of Snježana Biloš.
– Today’s time is challenging, we are exposed to a multitude of triggers, and people who are not in managerial positions have their challenges at home, and if you create stress at work, you create dissatisfaction. Therefore, respect and consideration are very important for the company, and I promote such a way of communication and try to incorporate that consideration into all phases of business, but that does not mean that I will not impose some disciplinary penalty or criticize – says Biloš, adding that she cannot say that everything shines and that everyone is perfect, but there must be that human approach, and feedback shows that for many employees, this approach is more important than the financial component.
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And while many in family companies will rely mainly on family members for further growth and development, there is another perspective where they rely on strategic partners for the growth and development of the company, such as funds or market leaders.
– We focus on investing in sectors, that is, our strategy is to consolidate sectors, we invest in those fast-growing ones that are fragmented, and so far we have had more than 30 investments in four sectors – said partner at Provectus Capital Partners Marko Galić at the panel titled ‘Development and Transfer of Family Business’ moderated by partner at Mazars Lovre Botica in front of a full hall.
Provectus Capital Partners invests in the retail sector of sports equipment, private healthcare, dental sector, and veterinary medicine. As Galić said, they believe these sectors are fast-growing, and in the companies they have invested in, they have established management groups led by economists, while the healthcare part remains focused on doctors who are partners and co-owners in the companies, and that is a part that the fund does not enter.
– We focus on these sectors because we believe there are very good companies where we can lead our own strategy, that is, a combination of acquisition and organic growth – said Galić, noting that they do not do restructuring or rescue.
– Finances are not the only indicator of a quality company, and we talk to many companies, but most owners view their companies as their own children, so money is not the decisive factor in whether they will enter into a partnership with us, but it is crucial whether the owner sees us as a good partner – stated Galić.
Mezzanine Partners has been operating in Croatia for only two years and has only one product, which is a loan that they can quite adapt. Thus, they have found a niche, that is, a mezzanine between banks and private equity funds.
