Spirituality and Corporate Philanthropy in Indian Family Firms: An Exploratory Study.
By Navneet Bhatnagar, Pramodita Sharma, Kavil Ramachandran
Journal of Business Ethics | December 2019
DOI
doi.org/10.1007/s10551-019-04394-3
Citation
Bhatnagar, Navneet., Sharma, Pramodita., Ramachandran, Kavil. (2018). Spirituality and Corporate Philanthropy in Indian Family Firms: An Exploratory Study. Journal of Business Ethics doi.org/10.1007/s10551-019-04394-3.
Copyright
Journal of Business Ethics, 2018
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Abstract
Family firm philanthropy (FFP) is the donation of resources to support societal betterment in ways meaningful for the controlling family. Family business literature suggests that socioemotional goals of achieving family prominence, harmony and continuity drive FFP. However, these drivers fail to explain spiritually motivated philanthropic behaviors like anonymous giving by some Hindu business families. Based on case studies and interviews with family members in 14 Hindu families in India with a combined giving exceeding 2 billion INR in 2016-17, this study suggests spirituality or the moral dimension as an additional important driver of corporate behaviors like FFP. Two fundamental spiritual beliefs of dharma (duty towards society) and karma (right to action) instill a culture of duty-bound giving in Hindus. However, the strength of each belief in controlling families varies. Juxtaposing these beliefs leads us to four types of family firm philanthropist labeled in this paper as Devout, Committed, Devoid, and Coerced. Devouts, the biggest givers, are spiritually motivated, controlled by at least 3rd generation family members with executive power and professional support. Societal development, rather than spirituality is the key motivator for committed philanthropists. While devoids strongly hold spiritual beliefs, they fail to devote adequate resources or develop professional structures to support FFP. Coerced, the smallest givers, focus on business growth, lack family champions or supporting professional structures, and face turbulent family or business domains.

Kavil Ramachandran is a Professor of Entrepreneurship (Practice) at the Indian School of Business (ISB). A founding faculty member, Professor Ramachandran established the Wadhwani Centre for Entrepreneurship Development at the Indian School of Business in 2001. He later served as the Associate Dean (Academic Programmes), before becoming the Thomas Schmidheiny Chair Professor of Family Business and Wealth Management, and subsequently the Executive Director of the Thomas Schmidheiny Centre for Family Enterprise at ISB until December 2021. He is currently the Senior Advisor, Thomas Schmidheiny Centre for Family Enterprise.

He specialises in family business, entrepreneurship, and strategy, with 36 years of combined academic experience at the Indian Institute of Management, Ahmedabad, and the Indian School of Business. Professor Ramachandran holds a PhD from Cranfield University, UK. His research focuses on family business, entrepreneurship, and strategy. He has authored and edited seven books and published extensively in reputed Indian and international journals.

His consulting experience includes areas such as family business governance, professionalisation, succession planning, strategic planning, identification of new opportunities for growth, corporate entrepreneurship and turnaround strategies in family and non-family business environments. His special expertise lies in managing the challenges at the interface of governance, professionalisation, and strategy, particularly in rapidly growing mid-size, multi-generational family businesses.

He has demonstrated special interest in mentoring young members of business families. He spearheaded the initiative in ISB offering a new MBA-level programme for the next generation of family business leaders (PGP MFAB) ,and was adjudged the “Faculty of the Year” by students in both 2018 2019, 2024. He was also adjudged the “Faculty of the Year” by students of Advanced Management Programme for Infrastructure (AMPI), 2024. In 2022, he was conferred with the Bharat Asmita Acharya Shreshtha Award (Best Indian Teacher in Management) by MIT World Peace University, Pune.

Recognising the contributions to institution building under the leadership of Ram in this area, ISB was rated as one of the best 25 business schools for family business in the world by Family Capital in 2015. He was mentioned as a “Star Professor” in that report. The Thinkers Leadership Magazine listed Ram as one of the top 100 management thinkers in India in 2014 and 2015, the only years it did such a listing. In 2022, Ram was listed amongst the top family business influencers in the world in the academics’ category by Family Capital. The combined effect of the multiple initiatives is the creation of a reassuring positive atmosphere in India towards family businesses in general and their sustainability across generations.

He has authored several case studies, worked with several well-known family business leaders and global experts, and consulted on transformation of family businesses. A frequent speaker at family business forums in India and abroad, he also contributes regularly to popular media. He has conducted numerous training programmes for family businesses on governance, professionalisation, strategic management, and entrepreneurship.

Professor Ramachandran has served on various advisory committees for the Government of India, the World Bank, and the Securities and Exchange Board of India (SEBI). His book, The 10 Commandments for Family Business, has been considered as one of the best books in this area. He has been a pioneer academic entrepreneur, propagating the message of strengthening family business in India and outside.

Kavil Ramachandran
Kavil Ramachandran