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Welcome to the Eighth Ezine from FBS

Good morning,

We hope you are well.  Our theme this month is "nepotism" and we explore the perception and reality of this often controversial issue. One family that is all too aware of the controversy that can surround charges of nepotism is back in the news following the announcement that Lachlan Murdoch is re-joining the family business. We hope you find this compelling reading.

If there is anything we can help you with, you are welcome to contact us here or call us on 0141 222 2820. 

Very best regards,
The FBS Team

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This Month's Infographic

Nepotism

In any society that likes to think of itself as “progressive” and which considers that it promotes “equality”, “nepotism” is a particularly ugly word. 

It conjures up images of corpulent managers in mahogany panelled boardrooms fecklessly advancing slack jawed relatives or children of school chums in preference to solid, hardworking and honest artisans. 

It is rare, if ever, that we see nepotism being depicted in anything other than a negative context. However, there is an argument that nepotism is essential for the survival of some family businesses from generation to generation. 

A useful working definition of nepotism is:-

“The practice amongst those with power or influence of favouring relatives or friends, especially by giving them jobs.”

In a family business, those with power will naturally tend to be family.  

This can be disconcerting for non-family employees. While there is a lot to be said for the view that if you join a family business as a non-family employee you should never really expect to become “the big boss” and there are many benefits to being an employee in a family business - they tend to be more stable and more, well, familiar, than other businesses - it is well recognised that nepotism and the effect of the family on promotion, advancement and job prospects, is a significant concern and de-motivating factor for non-family employees. 

Read the full article on Nepotism here

Lachlan Murdoch Re-joins the Family Business

The undertones of nepotism that have long surrounded News Corp were brought to the fore again when Lachlan Murdoch was recently appointed co-chairman of the company.

The decision by his father to choose Lachlan, over his brother James, as heir to the family business comes after criticism from company share-holders about a lack of a succession plan from the media mogul, who is now in his eighties.

Although Lachlan is the eldest sibling, it was his younger brother James who was tipped to take over the empire. However, amid the phone-hacking scandal and subsequent inquiry by broadcasting authorities, James left to pursue other ventures, leaving a throne without a successor.

The return of prodigal son Lachlan has heralded a significant step forward in the relationship between father and son. Gone are the days of Rupert undermining his son's authority with Lachlan now receiving the keys to the kingdom and his father's total confidence:

"Lachlan is a strategic and talented executive with a rich knowledge of our business."

Regardless of the strategic implications for the company, it is clear that the emotional importance of having his own blood at the helm of his life's work far outweighs any other concerns. Nepotism and all the negative comment that accompanies it is a small price to pay for keeping the business in this family.

About FBS

FBS was established in 1996 by two of the world’s leading practitioners in the field of family business consulting.

FBS has developed a consulting service that is unique to FBS and that enables FBS to provide help to families in a consistent and cost effective way. It is tried and tested, and more importantly, provides a safe framework within which families can discuss and resolve the issues they face.

This month -

Susan, George and Liam all attended the Goodison Group events in Edinburgh and Inverness. We will be reporting back on the outcome of these events shortly.

Meet the FBS team here

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