Family-controlled companies and business families: non-economic motivations for private social investments

Lizandra Ariane Machado de Castro; Cláudio Antônio Pinheiro Machado Filho; Lucas dos Santos-Costa; Susana Sales da Silva Campos

doi:10.5585/2025.26598

Authors

Lizandra Ariane Machado de Castro Universidade de São Paulo - USP, São Paulo, Brazil https://orcid.org/0000-0001-5102-6380
Cláudio Antônio Pinheiro Machado Filho Universidade de São Paulo - USP, São Paulo, Brazil https://orcid.org/0000-0002-6733-5142
Lucas dos Santos-Costa Universidade de São Paulo - USP, São Paulo, Brazil https://orcid.org/0000-0002-0979-3567
Susana Sales da Silva Campos Universidade de São Paulo - USP, São Paulo, Brazil https://orcid.org/0000-0003-4679-6502

DOI:

https://doi.org/10.5585/2025.26598

Keywords:

family-controlled business, entrepreneurial families, private social investment

Abstract

Purpose of the study: This study explores the perspectives of family members involved in family businesses, guided by the following research question: What motivates family-controlled companies and entrepreneurial families to engage in Private Social Investment (PSI)?

Methodology/Approach: This qualitative paper utilizes a multiple case study approach, analyzing five family businesses through both primary and secondary data to understand the motivations behind their engagement in PSI.

Originality/Relevance: We identify key non-economic motivators for PSI within family-controlled companies and entrepreneurial families, building upon existing research. Among the family-related motivations, factors such as purpose alignment, family values and involvement, the example set by founders or previous generations, and the family's image and reputation emerge as crucial drivers for engaging in PSI.

Main results: The findings reveal a diversity of motivations for PSI among family members, which can be categorized as societal, familial, or individual (personal). Furthermore, the strategies that families employ to implement their PSI are also varied.

Theoretical contributions: This research contributes to the existing literature on PSI in family businesses by analyzing the phenomenon from the perspective of family stakeholders and identifying the diverse strategies they employ.

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Author Biographies

Lizandra Ariane Machado de Castro, Universidade de São Paulo - USP, São Paulo, Brazil

Ph.D. Candidate in Business at the University of São Paulo. Lecturer in company courses at Pensa (Program of Business Studies of the Agroindustrial System) of the FIA Business School (Brazil). Has been publishing in corporate governance in academic conferences and journals.

Cláudio Antônio Pinheiro Machado Filho, Universidade de São Paulo - USP, São Paulo, Brazil

Professor of Business at the University of São Paulo. Post-doctorate internship at FEA/USP. Visiting Scholar at Wageningen University (The Netherlands). PENSA (Program of Business Studies of the Agroindustrial System) research group coordinator. Member of the Board of Trustees of the Fundação Instituto de Administração (FIA). Has been publishing in corporate governance in academic conferences and journals.

Lucas dos Santos-Costa, Universidade de São Paulo - USP, São Paulo, Brazil

Ph.D. Candidate and Master of Sciences in Business at the University of São Paulo (Brazil). Supervisor and Junior Lecturer at PECEGE/ESALQ-USP and FIA Business School (Brazil). Visiting Scholar at Radboud University (The Netherlands).

Susana Sales da Silva Campos, Universidade de São Paulo - USP, São Paulo, Brazil

Ph.D. Candidate in Business at the University of São Paulo (Brazil). Research analyst at Instituto Brasileiro de Governança Corporativa (IBGC). Has been publishing in corporate governance in academic conferences and journals.

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