The relationship-driven decision-making in businesses is consistent with the nature of the firms in the region. Most of the private companies in the region are family owned businesses. This characteristic creates a gloomy economic outlook for the region when we consider that less than 5% of family companies survive until the fourth generation. Corporate governance can create an internal structure to ensure the survival of the company into successive generations. Corporate governance standards need to encourage family-dominated firms to adopt modern business management techniques, including the delegation of responsibility based on merit and not bloodline and normalization of family member's control of the corporate board to ensure that all board members contribute equally to the decision-making process of the company.
The Hawkamah Institute will guide family business owners in instituting good corporate governance in their firms through various means to increase understanding of the link between transparency and sustainability and the overall contribution these businesses can play in the economic development of their societies. The institute will conduct an assessment of current firm-level corporate governance practices, conduct a customized program for board members and owners on corporate governance best practices, and develop an action plan for boards to institutionalize corporate governance principles in company operations.
Hawkamah's Corporate Governance Assessment Program.