Legal-Economic Ownership and Generational Transfer in Family Business: Facets of Owner's Responsibility

Abstract

In the following paper a conceptual framework of the owner’s responsibility is created in order to study the transgenerational legal-economic ownership in the family business. Responsible ownership involves a sense of accountability and entrepreneurship to some extent. However, legal and social responsibilities naturally supplement each other in the family firm. Owners by means of personal relationships and financial guarantees are responsible for carrying out daily business operations and maintaining a balance with the stakeholders. The certain constituents of the estate planning are evaluated through the lens of responsibility. As a final step, the following study provides a synthesis matrix of the zones and fundamentals of the owner’s responsibility in the family firm during the generational succession.