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Abstract
Family businesses are distinct from non-family businesses due to the families' involvement in managing and influencing the business. The influence can take several forms. This study examines if religiosity, spirituality and power influence of the owning family business affect the family businesses' corporate social responsibility towards their customers, employees, shareholders and societies. The study hypothesises positive effects of religious belief, religious practice, spirituality and power influences on family business corporate social responsibility. Data was collected among 251 family members from 84 small to medium-sized family businesses in the North Island of New Zealand. The relationships were significant for spirituality and religious practice (negative effect). Ultimately, discussion and practical implications are discussed.
Introduction
Family businesses represent key contributors to many countries' economies worldwide (Senegovic et al., 2015). According to the Family Enterprise Research Academy (2015), family businesses represent 80% to 95% of all private companies worldwide. They contribute to new job creation and sustain the business beyond two and three family generations (Ramadi and Hoy, 2015). Given the importance of family businesses to the global economy, the study of ethics on these businesses is undoubtedly significant (Vazquez, 2018). Family businesses are fundamentally different from non-family businesses (Chrisman, Chua and Sharma, 2005; Sharma and Sharma, 2011). More exclusively, the literature has acknowledged the differences in embracing business ethics and values between family businesses and non-family businesses (Yazici, McWilliams and Erca, 2018). In family businesses, the values are often imposed by the beliefs and values of the owning family. Indeed, Sorenson (2013) has observed that a family owning a business often transfers their beliefs and values to shape the business organisational structure and system. This is because family businesses are often managed by a dominant coalition (Sharma and Sharma, 2011). The dominant comes from the founder, family members who work in the business, and employees hired through nepotism (Chua, Chrisman and Sharma, 1999). On the positive side, the studies have found that family businesses tend to be more socially responsible than non-family businesses because they want to build a positive reputation in society and to enhance their family reputation image (Dyer and Whetten, 2006; Godfrey, 2005). The ethical practice in a family business is often influenced by the owning family and the founder through the involvement...