Grant Thornton’s partners vote to join Grant Thornton Advisors multinational platform. Read more.
According to the Family Business Survey 2021, just over half of Australian family business are attempting to demonstrate a focussed commitment towards meeting enhanced environmental, social and economic sustainability targets. The reasons for this are multi-pronged: the changing values and priorities of their people; customer/client preferences; and changing government legislation.
As such, it has become evident that correctly adopting a sustainable element as part of a supply chain leads to environmental, customer, cultural and community benefits. It also enables family businesses to see significant, long-term financial savings and influences the succession plan for their business.
Private businesses are traditionally reliant on third parties as part of their supply chains. With client and customer experience dependent on the quality of these relationships and inputs, the most successful businesses take detailed measures to ensure their supply chains accurately reflect the target demographics, price sensitivity and values of their clients.
Sustainability has been spoken about for a long time as a potential option when considering where your inputs are being sourced from, however there is constant debate between ethically appropriate choices versus cost effective choices. Historically it has been the common view that making ethical and sustainable decisions is a luxury that a lot of businesses can’t afford.
Nevertheless, research around the topic has shown that businesses who understand where they can be sustainable in their supply chain build a stronger customer base in the long run. Successful businesses also implement quality sustainable practices, work closely with the community who provide the supplies, and engage their employees in the decision-making process.
For example, some of the long-term benefits can include:
Family Businesses continue to be at the forefront of innovation and community. We see our clients being the drivers of a sustainable future, social justice and the green revolution. Not only do they produce efficient and sustainable businesses that are passed from generation to generation, but they continue to work with their communities, proud to be the products and custodians of their surroundings.
At Grant Thornton, we can help you review your supply chains to assess where they can be more sustainable and produce better outcomes for your business in the long term.
Along with this, we believe that developing a good succession plan is part of creating a successful and sustainable business and we are ready to assist you with your plans for the future.
The announced 30 per cent minimum tax on discretionary trusts creates significant challenges for private groups.
Succession is no longer just about who takes over. Many family businesses are using succession planning as a catalyst to reassess whether their current structure is still fit for purpose. As businesses scale, trust or partnership structures can become restrictive. Issues may include limited asset protection, challenges winning commercial contracts, reduced buyer appeal, and constraints on reinvesting profits to support growth.
In estate planning, the focus is often on technical elements like drafting a will, appointing executors, minimising tax, and ensuring assets pass as intended. While these steps are important, they only form part of the picture.
