Goals for Family Businesses: Wealthy or Sustainable towards ESG (Part 1)

In my article, "Dharma and Family Business: Is It Really Important?", published in the March 2026 issue of the Financial and Banking Journal, I wrote that I would use the books "The Constitution of Life," "The Human Manual," and "The Dharma" by Phra Phromphacharayanamuni (Ajahn Chayasaro) as guides for analyzing and applying these principles to family businesses. This would involve referencing seven chapters on Dharma in family business from the 2011 book "Sustainable Family Business Succession Planning in Thailand," and chapter 6, "Dharma Principles for Thai Family Business Succession: The Four Sublime States and the Four Principles of Social Harmony," from the 3rd edition of "Success Formulas for Thai Family Businesses in a Changing World," published in 2023.

This article will also consider the book "6C: A Formula for Success and Failure of Thai Family Businesses" (published in 2569). Part 1 will examine the goals or vision of family businesses: what are they striving for? Is it solely for wealth accumulation, or is it for the sustainable prosperity of the family business? Specifically, it will explore setting goals for the common good and whether it's possible to achieve ESG goals by using ethical principles as a guideline.

A question bigger than wealth: Goals. ESG

In today's business world, whether it's a global family business, a large or medium-sized family enterprise, or a small family business passed down through generations, one question seems to be overlooked amidst the profit figures, returns, and strategic plans: Is the sole goal to create wealth for oneself and one's family? The answer is certainly not the only goal.

For unique family businesses that blend family and business relationships, this question becomes even more crucial. It's not just about whether the business will be profitable and sustainable, but rather about the values ​​or goals the family business will deliver to stakeholders, the meaning of succession from generation to generation, and the relationships among family members, all of which ultimately determine the long-term sustainability of the family business.

Currently, ESG is a crucial issue that family businesses, large or small, cannot avoid. Therefore, setting ESG goals for family businesses to achieve is essential, using ethical principles as tools and practices to move towards those goals (see Chapter 3, "ESG is an Option with No Alternative" in the book "The Success Formula for Thai Family Businesses, 2566," and Chapter 3, "Preparing to Cope with Changes in ESG for Family Businesses" in the book "6C Success Formula, 2569").

Lessons from the Constitution of Life of Somdej Phra Buddhaghosacharya: The Teachings of Phra Brahmabhajrayanamuni (Ajarn Chayasaro)

In his book "The Constitution of Life," the Venerable Somdej Phra Buddhaghosacharya (P.O. Payutto) explains the principles of managing wealth as follows:

"Step 1: Work diligently and save money like bees collecting nectar and pollen."

“Step 2: When your savings have built up like an anthill, plan how to spend them. One part should be for supporting yourself, your family, caring for those around you, and doing good deeds. Two parts should be used for your work and business. One part should be saved as a security for life and business in times of need.” (See Part 1, Buddhist Discipline, Rule 2: Preparing Life's Capital in Two Aspects)

This principle reflects the crucial idea that work or business should not be solely focused on generating profit and wealth for oneself and future generations, but should also include a social responsibility to care for society, stakeholders, and do good (according to the S (Social) principle). Family businesses operating under this principle should therefore have a systematic allocation of resources, not just donations for image, but as an integral part of the corporate culture, ingrained in the family's goals and values ​​from the outset.

There are three key principles in the family business philosophy that should be considered when setting business goals: the Four Principles of Social Harmony (Sanghahavatthu 4), the Seven Virtues of a Good Person (Sappurisadhamma 7), and the Four Sublime States of Mind (Brahma Vihara 4). These can be considered as follows:

1) The Four Principles of Social Harmony

The Constitution of Life presents the Four Principles of Social Harmony (Sanghahavatthu 4) as guiding principles for uniting people and fostering harmony. These principles consist of: Dana (giving and sharing), Piyavaca (speaking kindly and lovingly), Atthacariya (doing good for others), and Samanattata (being impartial and sharing both joy and sorrow). (See the book "The Formula for Successful Thai Family Businesses in a Changing World of 2566," pages 315-323).

When these principles are applied to a family business, the goals set are: Dana (giving), meaning sharing money, knowledge, resources, and opportunities with employees, the community, and stakeholders; Piyavaca (kind speech), referring to a corporate culture of respectful and caring communication among family members and stakeholders; Atthacariya (beneficial conduct), meaning creating products and services that provide genuine value to customers' lives; and Samanattata (equality), meaning leadership that actively addresses problems with the team, without isolating oneself from organizational issues.

His Holiness Somdej Phra Buddhaghosacharya (P.O. Payutto) It is explained in the Constitution of Life, which states that: "When life and business are guided by compassion and empathy, rather than self-interest, the results will show that life and business are not as bad as we thought. In fact, they will help make our lives lighter and more comfortable."

This moral principle of the Constitution of Life aligns with the 6C formula, specifically point 5, which emphasizes Care and Compassion: showing kindness and compassion to all involved and to the community as a whole, including all family members and related parties, the community, and society (see the book "Successful Formulas for Thai Family Businesses, 2566," pages 66-67).

2) The Seven Virtues of a Good Person: Characteristics of a true family business owner.

In the section "People and Life" of the Constitution of Life, Somdej Phra Buddhaghosacharya presents the Seven Virtues of a Good Person (Sapparisa Dhamma), which are the qualities of a virtuous person or righteous individual.

1. Dhammaññuta: Knowing the principles and causes. This means the business owner understands the principles and rules of everything they are involved with, and knows their position, status, profession, and responsibilities.

2. Atthaññuta: Knowing the purpose and knowing when to be content; this means understanding what benefit one aims to gain from one's actions and way of life.

3. Self-awareness means knowing one's status and abilities.

4. Moderation (Mattanyuta) means knowing how to be moderate in consumption and spending, not just to satisfy one's own desires, but acting in a way that is balanced and produces positive results.

5. Kalanyuta, or knowing the right time, means understanding the appropriate time and allocating sufficient time for work.

6. Parisanyuta means knowing the community in order to work and help them.

7. Understanding people (Pukkhalanyuta): Knowing individuals in order to recognize the differences among people in your search.

These qualities combine to create an image of a family business leader who is intelligent, responsible, and has a sense of social responsibility, which aligns with the structure of good corporate governance and shareholding (C1 Success Formula), unlike businesspeople who focus solely on profit and wealth accumulation.

Venerable Ajahn Chayasaro once preached that family businesses should adhere to the Four Sublime States (Brahma Vihara 4) and the Principles of Social Harmony (Sanghahavattu). Similarly, his book, "One Dozen Virtues: 12 Virtues for Success in Buddhist Studies," discusses these 12 virtues, including non-violence, self-sacrifice, and generosity—three of which are mentioned (see the Dhamma section in the book "Sustainable Family Business Succession Planning," 2011 edition).

3) The Four Sublime States (Brahma Vihara 4)

His Holiness Somdej Phra Buddhaghosacharya defined morality, or humanity, as "a person with morality or humanity, who can be called a civilized person, possesses virtue, meaning they have integrity in all three aspects": bodily integrity, verbal integrity, and mental integrity (wholesome actions). He also outlined the principles of a person who benefits society as the Four Sublime States (Brahma Vihara 4) and the Four Principles of Social Harmony (Sanghahavatthu 4), mentioning "the practice of helping others, that is, acting according to the principles of helping others, or the virtues that bind people together and unite them in harmony," which is essentially the Four Principles of Social Harmony.

From a family business perspective, "charitable service" in a business context means that the business acts as a good corporate citizen, sharing capital and knowledge, communicating with stakeholders with courtesy and sincerity, working for the true benefit of its customers, and consistently treating everyone fairly. (See Part 2, Section 1, Constitution of Life: People and Society, which divides individuals into those with morality and those who contribute to the common good.)

In addition, there are two other principles: the Ten Principles of Conduct (Minathakarana Dhamma 10) and the Six Principles of Harmony (Saraniya Dhamma 6), which will be analyzed and applied to the analysis of family businesses in the next chapter.

Lessons from the Human Manual: Morality as the Foundation of Action

In his masterpiece, "Manual for Humanity," Ajahn Buddhadasa presents the essence of Buddhist teachings in a systematic and practical way for daily life. He states that Buddhism is a discipline encompassing the principles and practices for understanding "what is what." Buddhist practice includes morality (sila), refraining from all evil, and doing good to the fullest extent.

Both of these points concern ethical conduct suitable for business. However, purifying the mind and freeing it from defilement can be challenging for ordinary people running family businesses, especially understanding the Three Characteristics of Existence: impermanence, suffering, and non-self. If one practices and understands these, one will feel that "there is nothing worth taking, nothing worth being." But if one can achieve this, it will be of the greatest benefit.

Furthermore, Venerable Buddhadasa stated that business is driven by three desires:

1) Sensual desire: The craving for things one loves and finds pleasing (e.g., wanting to be rich).

2) Bhava-tanha: The desire to be like this or that according to one's aspirations (desire to be skilled).

3) Vibhava-tanha: The desire not to be like this or that (not wanting to be poor or suffer).

But when we understand that all things are impermanent, suffering, and non-self—"not worth clinging to, not worth being"—we conduct business with wisdom, not with desire, freeing ourselves from being slaves to craving. "However, in reality, it may be difficult for most family business owners to practice this. But if family business owners do not cling to things as self or their own," but conduct business with a sense of right and wrong, and allow things to proceed according to customs, traditions, and laws, practicing to understand what all things are and their true nature—these principles are the Four Noble Truths, along with the three precepts of the Patimokkha: refraining from all evil, doing good to the fullest extent, and purifying the mind—that would be the best goal for everyone to strive for.

The Profit Trap: When the Tool Becomes the Target

Family business scholars worldwide have come to a common conclusion: family businesses that fail in the long run are often not due to a lack of profit, but mostly because they lack "meaning" or a shared goal. "Greed, or the insatiable desire for wealth and prosperity without regard for stakeholders, inevitably leads to conflict. Because when profit and wealth become the sole ultimate goal that the family focuses on, conflict arises."

These often lead to various consequences, including inheritance disputes among heirs, workplace conflicts, family relationship conflicts, unmotivated employees, and a feeling of being exploited by business partners or the surrounding community.

Venerable Buddhadasa said, "Humans are beings with noble minds," and that human life has value because we possess intelligence, the ability to learn, understand, and overcome suffering, not merely to live for pleasure or to satisfy desires. This is the core message. Venerable Buddhadasa pointed out that relentlessly pursuing and satisfying desires without limits is what defines a "animal," not a true "human." Similarly, businesses focused solely on profit or wealth for the owner's gratification, without regard for anything else, are businesses that have not yet elevated their spiritual values ​​to the true worth of being human.

Therefore, family businesses must set their goals with morality as their core principle. This means refraining from evil (violating moral precepts) and doing good to the fullest extent for the family, society, and community (two points of the Patimokkha). And, ideally, this can be achieved without "the power of attachment."

Venerable Buddhadasa explained that all suffering in human life arises from "upadana," or clinging to things as if those things had a permanent existence and belonged to oneself. He divided upadana into four types: kāmupadāna (clinging to pleasing sensual pleasures), diṭṭhupadāna (clinging to views), sīlabbatuppadāna (clinging to rituals and ceremonies), and attavādūpadāna (clinging to the belief in a self).

In the context of family businesses, these four attachments are reflected in various forms. For example, sensual attachment (kama-upadana), while potentially beneficial in the worldly sense and fostering love for family, diligence, and a pursuit of wealth and fame, is crucial. However, it is essential to control the obsession with profit and wealth to the point of neglecting other values, which can lead to failure.

Ditthi-upadana manifests as clinging to traditional business methods passed down from ancestors, to the point of refusing to adapt. Silabbatu-upadana represents attachment to business rituals without understanding their essence. And Attavadu-upadana is the belief that "my business" must belong only to me and my descendants.

These four types of attachment (upādāna) inevitably lead to the failure of family businesses, corresponding to the 6C formula for family business failures: 5. Complacency (negligence/lack of caution) and 6. Change Blindness (unwillingness to accept change), which is clinging to the ego and inability to let go. (For details, see the 6C formula for success and failure, 2026 edition, pages 80-83).

From these principles, we can find out: What constitutes a valuable family business??

When we apply the principles and concepts from both "The Human Manual" and "The Constitution of Life," the teachings of Phra Phromphacharayanamuni (Ajarn Chayasaro), and the 6C formula for success that I previously wrote about, a clearer picture of the true value of a family business begins to emerge. It becomes evident that a family business should operate on a foundation of three levels, as follows:

Level one: Intrinsic values ​​(Internal Value)

A valuable enterprise must begin from within the family business owners and their members, both at the individual level of leaders and owners and at the organizational culture level, including raising future generations within the family business to understand the values ​​or goals. Buddhadasa Bhikkhu taught that the practice of Dharma must begin with the correct "level of religious practice," which starts with understanding the common characteristics of all things: impermanence (anicca), suffering (dukkha), and non-self (anatta), and that "there is nothing worth taking, nothing worth being." This should be accompanied by an understanding of and adherence to the rules, regulations, and the C1 Good Corporate Governance Structure of the success formula.

When family business leaders deeply understand the principle of impermanence, they will not become attached to temporary successes, will not be swayed by temporary failures, and will have the wisdom to adapt to ever-changing circumstances (this is adapting to change, the sixth "Change C" in the formula for success). This is strategic flexibility that is deeper than any management formula.

Level two: Value to stakeholders (Stakeholder Value

The Constitution of Life, clearly emphasized in the section on "People and Society," highlights that humans are social beings who depend on each other for survival. Therefore, a good family business must create value for everyone involved, not just the owners.

Furthermore, in his book, "The Constitution of Life," Somdej Phra Buddhaghosacharya defined "Six Directions of Relationships," encompassing relationships with parents, teachers, spouse, friends, servants, and monks/Brahmins. In the modern business context, this can be interpreted as relationships with employees, customers, suppliers, the community, and society as a whole (stakeholders).

Nurturing these six aspects of relationships is not a burden, but rather the foundation of sustainability. Businesses recognized by society as good businesses will gain more trust, loyalty, and lasting support than those focused solely on short-term profits. Using ESG as a guideline, the fifth "C" in the formula for success—Care and Compassion—in caring for the family business and its stakeholders, is a guiding principle that family businesses should aim for.

Level three: Value to society and the world.Social Value)

Both Venerable Buddhadasa and Venerable Somdej Phra Buddhaghosacharya consistently emphasized that true virtue does not end with oneself or close associates, but must extend to the wider society. Venerable Buddhadasa used the phrase "for all human beings," and Venerable Payutto and Venerable Chayasaro presented the "Four Sublime States" (Metta, Karuna, Mudita, Upekkha), which are inner virtues that, when expressed outward, transform into the Four Principles of Social Harmony (Sanghahavatthu 4) at the societal level.

Family businesses at this third level view themselves as “corporate citizens” with responsibilities to society, not just profit seekers. They must invest in community and social development, promote education, protect the environment, and treat employees as family members. In other words, they genuinely implement ESG principles.

Case Study: When Ethics and Business Are Integrated

The concepts from these principles are not merely theories on paper. Throughout the history of Thai and global family businesses, we find numerous examples of sustainably successful enterprises because family members adhere to moral principles, refraining from wrongdoing and focusing on good (according to the principles and beliefs of each family's religion) in their business dealings.

Common principles found in these sustainable family businesses include having a clear and purposeful objective that goes beyond mere profit-seeking, a corporate culture emphasizing integrity and responsibility, treating all stakeholders fairly, and building a long-term foundation rather than focusing on short-term returns.

Conversely, failed family businesses or those that harm society often share common characteristics: a focus on short-term profits that exploits stakeholders, a disregard for social norms and rules, and exploitation driven by greed and possessiveness over wealth, leading to corruption—examples of which are numerous—and a lack of social responsibility.

All of these are what Buddhadasa Bhikkhu called "defilements or desires," and Payutto called the lack of "good conduct" in practicing ESG principles, or C1, which means a lack of good corporate governance that can lead to the collapse of family businesses.

Practical Application: Setting Goals and Vision for Building a Valuable Family Business.

From all the principles analyzed, we can use them as practical guidelines and concrete principles for family businesses. These can serve as a compass in developing a family charter that clearly defines the goals or mission of the family business, especially in order to fully achieve ESG goals. This can be divided into:

1) Setting a mission objective that goes beyond profit.

Family businesses should have a clearly defined "mission" or goal, specifying what value the business aims to create for society and the country, not just to gain profit or wealth. This mission should be linked to the family's history and values, so that future generations can meaningfully inherit and build upon it. This aligns with the principles of "atthanyuta" (knowing the purpose and knowing when to be content) and "parisanyuta" (knowing the community) as outlined in the teachings of Venerable Payutto.

2) Building a corporate culture based on ethical principles.

Organizational core values ​​should reflect chosen ethical principles such as honesty (integrity), generosity (charity), mutual respect (kind speech), and focusing on the common good (beneficial conduct). These values ​​should not be merely empty words in a family's constitution, but must be reflected in the actual behavior of the family's leaders as managers, starting with the upbringing of their children, and setting a good example for both the family and employees within the organization.

3) Allocating resources for sharing with the community.

According to the principles of Venerable Payutto, businesses should have a clear policy of allocating a portion of their revenue to "doing good," whether it's employee development, supporting the community, or environmental conservation. This proportion shouldn't be cut when profits are low, but should be an integral part of a sustainable business model and an ESG (Environmental, Social, and Governance) approach. (See examples like the Illy family business, the Italian coffee company; Mars, the chocolate and food company, which takes environmental initiatives seriously; and Patagonia of the United States.) (See examples in the book "6C: The Formula for Success," 2569 edition, pages 144-149.)

conclusion

Family businesses as a lifelong mission: When considering their ethical principles, we find a clear answer to the initial question, "What is the purpose of running a family business?" Those involved in family businesses must be good, moral people, refraining from wrongdoing or illegal activities, and striving to do good for the family, society, the nation, and the world (the environment).

The answer is that true family businesses, in addition to focusing on profit and wealth, also aim to sustain themselves in creating a good life for the owners, employees, customers, the community, and the environment as a whole. It is a spiritual legacy passed down through generations, and represents a group of people choosing to "not have lived in vain" by using ESG principles as a compass to achieve sustainable success.

Let's start defining the "goals and vision" for our family business today.