Abstract
Purpose: Limited evidence exists on the application of the African philosophy of Ubuntu in family businesses and how it relates to ethical values, ethical behaviour and business outcomes. Our study identifies ethical values influencing the decisions and behaviours of indigenous Black South African (IBSA) family businesses and explores the manifestations of these values in this context.
Design/methodology/approach: Our study adopts a qualitative approach and case study design and draws on semi-structured face-to-face interviews to collect data from participants in seven IBSA family businesses. The software ATLAS.ti was utilised to manage the data, and reflexive thematic analysis was undertaken.
Findings/results: The analysis reveals that ethical values relate to relational, coexistence and compassion values, which are aligned with the Ubuntu philosophy and reinforce each other. These values are the antecedents of ethical behaviour in IBSA family businesses and are associated with business outcomes, including organisational transparency, employee engagement, customer satisfaction, societal impact, long-term value creation and organisational identity and reputation.
Practical implications: The study explored the link between ethical values, Ubuntu philosophy and business outcomes in IBSA family businesses. We recommend adopting relational values to strengthen stakeholder connections, coexistence values for harmony and cooperation and compassion values to foster empathy and mutual care.
Originality/value: This study contributes to the family business literature on values and ethics, as well as to the broader conversations in the fields of management and organisational behaviour. Our study advances knowledge of ethical values and Ubuntu in family businesses by proposing a new framework through which values related to Ubuntu can be categorised and understood better.
Keywords: coexistence values; compassion values; ethical values; Indigenous African family businesses; relational values; Ubuntu philosophy.
Introduction
The importance of ethical behaviour by organisations has increased considerably (Sheedy et al., 2021), as unethical business practices can lead to negative outcomes, including financial or reputational losses, legal action, customer backlash, competitive disadvantages and long-term sustainability challenges (Bag et al., 2024). Unethical business practices can also harm employee morale and engagement, leading to decreased productivity and higher turnover rates (Sharma, 2018). In fact, an organisation’s ethical behaviour influences how employees interpret workplace conditions and shapes their beliefs about perceived organisational treatment and support (Zagenczyk et al., 2021).
Several studies (e.g. Hadjielias et al., 2025; Madden et al., 2020) argue that family businesses tend to be more ethical than their non-family counterparts. For example, recent literature shows that family businesses are more aware of ethical situations because of responsible leadership (Hadjielias et al., 2025). Rubino and Napoli (2020) found that family businesses have better environmental performance than non-family counterparts. Family businesses are often associated with benevolent behaviour towards overall societal well-being, leading to the promotion of ethical behaviour within the organisation (Kupangwa et al., 2026; Reck et al., 2022). It is the inclusion of morally binding values that significantly changes organisational decision-making and ethical behaviour in family businesses (Astrachan et al., 2020). These values make family businesses incubators for value-led decision-making and behaviour (Dieleman & Koning, 2020), which provides a relevant context for assessing the nexus between ethical beliefs, decision-making processes and behaviours in business organisations, such as family businesses.
While prior studies on values and ethics within family businesses exist (e.g. Madden et al., 2020; Reck et al., 2022; Sanchez-Famoso et al., 2023), several scholars have noted that research on family business ethics and ethical values is theoretically fragmented and largely undocumented (Binz Astrachan et al., 2017; Dieleman & Koning, 2020). Existing studies often fail to identify the ethical value sets in these businesses, which could provide insights into their heterogeneity (Tabor et al., 2019). Similarly, Hadjielias et al. (2025) note that the intersection of family business and business ethics remains under-researched. The dearth of studies on ethical values in family businesses is somewhat of a concern, given that the family business ethical literature views these values as historical fixtures that drive ethical decision-making processes, ethical organisational cultures and ethical behaviour (Chaudhary et al., 2025; Dieleman & Koning, 2020; Reck et al., 2022).
Indeed, previous research (e.g. Peng et al., 2018; Rubino & Napoli, 2020) on ethics in family businesses has predominantly focused on comparing family businesses with non-family businesses and on examining the consequences of ethical behaviour rather than on delving into its underlying antecedents. This limited emphasis on the antecedents of ethical behaviour in family businesses has led to a lack of comprehensive insights into the origins and drivers of ethical conduct in this unique organisational context (Astrachan et al., 2020). Given this limited emphasis and the fact that values influence ethical behaviour, there is a need to investigate values as antecedents of ethical behaviour within family businesses, ultimately enabling a deeper understanding of the roots of ethical behaviour in this context (Reck et al., 2022). Very little research has examined ethics-based topics in the family business context (Chaudhary et al., 2025). In this study, we therefore posit that values are fixtures that drive ethical business behaviour, enabling family businesses to articulate their organisational identities (Dieleman & Koning, 2020). As ethics conveys the conception of what is right conduct and behaviour (Caldeira & Infante-Moro, 2025), investigating the value sets behind ethical behaviour could shed light on the principles that underpin ethical behaviour and practices among family businesses (Dieleman & Koning, 2020).
Adopting the African philosophy of Ubuntu as a theoretical lens and using a qualitative approach, our study aims to identify the ethical values that influence the decisions and behaviours of indigenous Black South African (IBSA) family businesses and to explore their manifestations in this context. More specifically, we seek to address the following research questions: (1) What are the ethical values found in IBSA family businesses, and how are they related to the values of Ubuntu? (2) How and with what business outcomes are these ethical values associated? In our study, an IBSA family business is one that is independently owned and managed by (an) IBSA(s), excluding South Africans from the Coloured and Indian population groups. The use of IBSA family businesses aligns with several research calls (e.g. Astrachan et al., 2020) for more studies on indigenous African family businesses to better understand the richness, complexity and diversity of values in other contexts, such as the African context.
Our study makes several contributions to the fields of family business and organisational behaviour. Firstly, it is one of the very few empirical studies to explore ethical values in an indigenous African family business context, applying Ubuntu as an alternative perspective. Ubuntu has gained attention in mainstream business ethics because of its strong humanistic orientation (e.g. Metz, 2021) and as a different perspective for understanding ethical business development and practices in organisations (Adeleye et al., 2020; West, 2014). We found that ethical values in IBSA family businesses relate to the relational, coexistence and compassion values advocated by the Ubuntu philosophy. As highlighted by Reck et al. (2022), the ethical awareness of individuals and organisations could be influenced by their cultural background, as different nationalities and cultures have different ethical values. Secondly, our study shows that values are antecedents of ethical behaviour and that they are associated with several business outcomes.
The structure of our articles is as follows: firstly, we provide a brief theoretical background on Ubuntu philosophy and ethics in business, followed by a discussion on ethical values in family businesses. Secondly, underpinned by our ontological and epistemological assumptions, we provide the methodological choices made. Thirdly, we present and discuss the key findings. Fourthly, we provide conclusions by elaborating on the contributions and implications to theory and practice as well as avenues for future research.
Theoretical background
Ubuntu philosophy and African ethics
Ubuntu, an African philosophy, emphasises interactions and solidarity among indigenous African communities (Shumbambiri, 2023). This philosophy describes the willingness of individuals and communities to care for and support one another (Van Breda, 2019). Ubuntu is often described by an African maxim ‘umuntu ngumuntu ngabantu’ (in Nguni languages), which translates as ‘a person is a person through other persons’ (Magezi & Khlopa, 2021). In African communities, African ethicists often conceive of social interdependence in terms of how family and community members relate to one another (Adewale, 2020). Salient value is placed on communal functioning within the African context in a way that is uniquely different from that of other non-African cultures, such as Western and European contexts (Adewale, 2020).
Ubuntu is deeply embedded in the African ethics perspectives of contemporary moral theorists and is largely shaped by the worldviews of indigenous black people in sub-Saharan Africa (Magezi & Khlopa, 2021). Several studies (e.g. Adewale, 2020; Samuel, 2023; Udah et al., 2025) highlight a relationship between Ubuntu and ethical values consistent with traditional African values. At its core, the values of Ubuntu that underpin the notion of Afrocentric ethics, include solidarity, compassion, communalism, cooperation, togetherness and respect (Ngubane & Makua, 2021). Other associated ethical values include generosity, hospitality, caring, openness and availability to others. These values are considered vital for social cohesion building within African organisations and communities (Makhubu et al., 2018). Thus, African moral philosophers tend to highlight ‘other-regarding actions and virtues’ commonly associated with altruism as the central virtue characterising Afro-communitarianism (Adewale, 2020).
The nature and role of ethics in business organisations
A common sentiment among scholars is that ethics is a difficult concept to describe and comprehend because of its complex, subjective nature. Ethics is defined as ‘moral principles’ (Hornby et al., 2010, p. 500) that govern the conduct of individuals or groups (Otaye-Ebede et al., 2020). While definitions vary, a common one is the constant expectation from organisations and their stakeholders to adhere to a set of morally sound principles and to act in ways consistent with those principles (Elrayah, 2021; Hadjielias et al., 2025).
The exploration of ethics within an organisational context has typically centred on two primary concepts: ethical climate and ethical culture (e.g. Ogbechie & Anetor, 2015; Otaye-Ebede et al., 2020). Ethical climate is understood as the ‘prevailing perceptions of typical organisational practices and procedures that have ethical content’ (Victor & Cullen, 1988, p. 101) and includes the normative beliefs and values about the moral issues that employees of an organisation share. Ethical culture, on the other hand, pertains to the organisation’s ability to encourage its members to act ethically (Zahari et al., 2024). It includes the aspects and traditions of organisational behaviour that encourage members of an organisation to behave sustainably. Although ethical climate and ethical culture differ, both reflect existing group norms and the shared values of an organisation rather than individual characteristics.
Scholars have long argued that ethical values are an important aspect of an organisation’s ethical culture, and some assert that ethical values are the antecedents of ethical climate and ethical culture (Ogbechie & Anetor, 2015), which in turn influence ethical behaviour in organisations (Reck et al., 2022). Within an organisational context, ethical values are described as reflecting the acceptable behaviours required of employees and management or as the moral principles and standards that govern an individual or group’s conduct (Suriyankietkaew & Kantamara, 2019). Through an ethical culture, ethical values contribute to the moral judgement and behaviour of both individuals and groups within organisations.
The importance of ethics in organisations is immense (Caldeira & Infante-Moro, 2025). To achieve long-term organisational sustainability, organisations should embrace ethical behaviours grounded in morality, compassion and stakeholder care (Suriyankietkaew & Kantamara, 2019). Authors such as Reck et al. (2022) assert that ethical values help strengthen organisational culture, and such cultures have been associated with organisational outcomes, such as innovation and employee well-being (Riivari & Lämsä, 2014), as well as employee commitment to organisational goals and their willingness to report unethical behaviours in the workplace (e.g. Huhtala et al., 2015). Recently, several studies (e.g. Bag et al., 2024; Reck et al., 2022; Tyll et al., 2025) found that an ethical organisational culture enhances employee job commitment and job performance, thereby improving the organisation’s overall performance.
Ethical values in family businesses
Family businesses are known for their strong, distinctive cultures and values because they are value laden (Kastanakis et al., 2025). It is these values that contribute to the uniqueness and longevity of family businesses, guide their decision-making and sustain business operations (Binz Astrachan et al., 2017). Consequently, examining values in a family business context helps understand sustainable, ethical behaviours in these businesses (Astrachan et al., 2020). The family-centric nature inherent in family businesses tends to link values with the promotion of sustainable, ethical behaviours.
Several scholars (e.g. Chaudhary et al., 2025; Hadjielias et al., 2025) argue that family businesses tend to be more ethical than their non-family counterparts. The ethical difference between them is attributed to family ownership (Astrachan et al., 2020), family involvement, social interactions among family members and the presence of specific values in family businesses (Hadjielias et al., 2025). Owing to the overlap between the family as an institution and the business, the values of founders and business-owning families become the main drivers of ethical behaviour (D’Allura et al., 2023). Earlier research on ethics in family businesses shows that the family’s core values significantly influence their organisation’s ethical climate and culture. Recent research further highlights that the family’s core religious values shape ethical behaviour espoused by the family business (Astrachan et al., 2020; Chaudhary et al., 2025). As a result, founders and business-owning families often have a strong desire to foster longevity and preserve the family reputation as well as to align the business with family values and goals that extend beyond financial returns. By overseeing the business from this perspective, business-owning families are driven by the need to ensure that organisation’s actions and decisions are in line with their broader objectives, including ethical considerations and the preservation of the family’s reputation (Hadjielias et al., 2025).
As the family’s dominant role and involvement in the business create complex overlap between the family and the business (Gjergji et al., 2025), the identity of the family business is almost always evaluated through the lens of family leaders and their owning families (Dieleman & Koning, 2020). Ethical practices in family businesses are seen as a strategy to reduce reputational risks such as legal issues, regulatory violations and reputational damage (Binz Astrachan et al., 2017). Building trust among diverse stakeholders and avoiding unethical practices that can harm the family business’s image are considered essential to the long-term sustainability of family businesses. As a result, family business leaders strive to demonstrate a commitment to ethical values that will enhance the overall protection of family and business identities (Binz Astrachan et al., 2017). Owing to this commitment, it can be argued that family business leaders spend most of their time cultivating ethical values to foster a strong ethical culture and institutionalise ethical behaviour in their organisations.
Methodology
Design
To answer our research questions, we position our study in an interpretivist paradigm. Our ontological assumptions are that indigenous African family businesses hold multiple and different social meanings and experiences, and that the nature of things in the African context is relational. Furthermore, our epistemological assumptions are premised on the notion that truth is merely the viewpoint of dominant groups in society, and that what counts as valid knowledge is subjective and determined by politically dominant points of view (Saunders et al., 2023). Our study adopts a qualitative methodological approach and a multiple case study design, which aligns with scholars (e.g. López-Nicolás et al., 2024) who assert that family businesses offer a rich and well-suited context to developing new theoretical insights.
Case selection
Using a purposive criterion sampling, we identified and selected information-rich cases based on their relevance to the phenomenon under investigation, which in our study were IBSA family businesses that fulfilled specific criteria, namely: (1) the family perceiving their business as a family business, (2) active involvement in the primary operations of the business with at least 50 per cent voting rights or shares, (3) having at least one active operating business and (4) demonstrating transgenerational intention. Furthermore, the selected family businesses had to be independently owned and managed by one or more IBSAs, excluding individuals from the Coloured and Indian populations because their values and cultural systems are significantly different from those of the black African population (Baron, 2022; Du Plessis et al., 2015). The focus on IBSA businesses was because of South African’s historical economic inequalities and transformation agenda.
Key participants within each business with whom to undertake interviews were identified and were one or more of the following: (1) a member of the most senior generation of the family business, (2) the business founder and or current controlling family business leader, (3) a family member working in the family business, (4) a non-active family member and (5) a non-family member (see Table 1).
Although qualitative research does not prescribe a fixed sample size (Saunders et al., 2023), this study was guided by the principle of information power, which aligns with the reflexive thematic analysis. Malterud et al. (2016) argue that the more relevant and richer the information held by participants, the fewer participants are needed and vice versa. In light of the study’s aim, the specificity of the sample, the application of established theory, the quality of the interview data and the chosen analytical approach, a relatively small sample was considered appropriate. Accordingly, the study included seven IBSA family business cases, each with at least one key informant.
Data collection
To support and triangulate the findings, multiple data sources were utilised, which included conducting multiple interviews for each family business (primary data source), engaging in participant observation and analysing secondary data. In most cases, excluding Cases E and G, the interview process was preceded by a site visit to the business premises and branches, allowing for the observation of the physical spaces and artefacts present. These observations offered valuable insights into group dynamics and behaviours within individual settings.
We used a semi-structured interview schedule, which comprised four main sections: (1) demographic information of the participants, (2) family business history, (3) ethical values in family businesses and (4) role of ethical values in family businesses. A total of 17 interviews were conducted involving 17 key participants. Apart from Cases E and G, where interviews were conducted using Microsoft Teams and the telephone, all other interviews took place at the business sites. Interview durations ranged from 33 min to 2 h and 17 min, resulting in approximately 32 h of audio-recorded interviews with the participants’ consent. We promptly transcribed each interview after it was conducted. By interviewing individuals from different positions and generations within the family, we were able to triangulate the data and obtain diverse insights. The addition of business cases and key participants continued until information power was reached, at which point no substantially new information was generated from the data. In addition to semi-structured interviews, relevant organisational documents and publicly available website content were analysed to support data triangulation. Ethical approval (Ref – H19-BES-BMA-004) for our study was obtained from our University’s Research Ethics Committee-Humans (REC-H).
Data analysis
To analyse our data, we employed the six-step reflexive thematic analysis framework outlined by Braun and Clarke (2021). In step one, we transcribed audio data verbatim into Microsoft Word documents, simultaneously noting significant information. Next (step two), we generated initial codes from the data using various coding types and phases. Following Bingham’s (2023) suggestion, we employed both deductive and inductive codes, and we labelled and organised items into meaningful groups. Our use of both deductive and inductive codes aligned well with the abductive reasoning approach we adopted. In step three, we identified patterns and meaningful connections in the code list, initiating theme development. Step four involved reviewing and refining themes by identifying coherent patterns in the codes, aiming to reduce duplications and ambiguities in theme meanings. Table 2 summarises our data structure and codes, illustrating the progression from first-order to second-order level codes and from second-order level codes to aggregate themes. In step five, we utilised the developed themes to conceptualise the story associated with each identified theme. While some of the final themes were developed deductively, some of the themes (e.g. honesty, accountability, professionalism) emerged inductively from the data during the thematic analysis process and were not imposed a priori concepts and themes from existing studies. In the final step (step six), we consolidated all writings, providing a concise account of the narrative conveyed by the data (Braun & Clarke, 2021).
Findings and discussions
Table 2 illustrates the ethical values found in IBSA family businesses and forms the basis for answering our two main research questions, namely: (1) What are the ethical values found in IBSA family businesses, and how are they related to the values of Ubuntu? (2) How and with what business outcomes are these ethical values associated?
Ethical values related to Ubuntu
One of the criticisms of Ubuntu is that its distinctiveness is ambiguous and that there are many different interpretations, which contribute to challenges to its applicability in the business sphere (West, 2014). This applicability challenge presents problems in categorising or grouping the values related to Ubuntu, as several values are often associated with this philosophy. For example, common and closely related values such as communalism, solidarity, collectivism, compassion and mutual caring are often used to describe the nature of values associated with Ubuntu (Makhubu et al., 2018; Van Breda, 2019). Given that Ubuntu is essentially relational ethics, emphasising interdependence, communalism, collectivism, caring for others, harmonious relationships and compassion (Udah et al., 2025), we categorised the ethical values identified in our study (Table 2) into three interrelated groups, namely relational, coexistence and compassion values. It is interesting to note that values such as humility, humanness, fairness, open communication, loyalty, respect and trust fit into more than one Ubuntu value category.
Relational values
We conceptualise relational values as principles, preferences, virtues and qualities that guide and define the nature of relationships between individuals or groups. These values emphasise the importance of connections, communication and mutual understanding in human–nature relationships (Uehara et al., 2022). Metz and Gaie (2010) argue that the African ethic of Ubuntu is essentially relational and demands that the only way to develop one’s humanness is to relate to others in a positive way. Examples of relational values that are related to the Ubuntu philosophy include loyalty, togetherness, respect and dignity (Ngubane & Makua, 2021), kinship, cohesion, harmony and humility, as well as interconnectedness (Makhubu et al., 2018; Udah et al., 2025).
In our study, relational values found to be related to the values of Ubuntu philosophy include respect, honesty, reliability, trust, fairness, loyalty, professionalism, open communication, humanness and humility. We propose that in the context of indigenous African family businesses, relational values play an important role in shaping the dynamics and quality of relationships with internal and external stakeholders. For example, the participating family businesses place great importance on how both family and non-family employees treat others, especially customers. Treating others with respect and dignity underlies interactions between those working in the family business, as well as interactions between members of the business and external stakeholders. Furthermore, values such as reliability and honesty guide their business dealings and being honest and following through on their commitments and promises to customers is paramount.
The great value placed on professionalism by the participating family businesses is evident in their emphasis on cleanliness and orderliness, maintaining high standards, striving for service excellence and being recognised as a legitimate business. Recognition as a legitimate business is reinforced by other values upheld, such as honesty, fairness, respect, trust and reliability, which lend credence and authenticity to the professionalism of these businesses.
As shown in our findings, values such as humility, open communication and humanness nurture interconnectedness among employees. For example, participants actively embody their commitment to humanity by embracing the principles of togetherness and fostering strong connections with individuals, particularly those employed in their family businesses. Participant 15 emphasises the significance of Ubuntu, highlighting its essence of standing united as a family and expresses a perspective that views the employees not merely as a workforce but as integral members of a familial unit.
The leaders of family businesses actively and purposefully engage with employees at various levels during social and organisational activities, demonstrating a commitment to a shared organisational culture. This practice is intended to convey a sense of connection between top management and employees across all organisational hierarchies. By sitting alongside employees, the family business founders and leaders aim to dispel the notion of a hierarchical divide, emphasising that they are approachable, grounded individuals who value Ubuntu. Similarly, family business founders and leaders foster a familial atmosphere by expressing shared emotions with their employees, including moments of laughter and shared challenges, creating a cohesive organisational culture.
Coexistence values
Relational values are supported by coexistence values, which are conceptualised as principles and beliefs that emphasise harmonious interaction, tolerance and mutual cooperation among individuals, groups and diverse communities (Ngubane & Makua, 2021). These values are essential for fostering understanding, cooperation and interdependence in a world characterised by cultural, ethnic, religious and ideological diversity. Metz and Gaie (2010) posit that the African ethic of Ubuntu is characterised by the idea that one has a moral obligation to think of oneself as bound up with and interconnected with others. That is, one has a duty to identify with others, and every member of a community is expected to consider themselves an integral part of the whole and to play an important role in achieving the good of the community (Metz & Gaie, 2010). Coexistence values associated with Ubuntu include cooperation, inclusivity, togetherness, interdependence and tolerance (Ngubane & Makua, 2021).
In our study, coexistence values related to Ubuntu included respect, open communication, diversity, fairness, trust, accountability, hard work, loyalty, humility and humanness. Family businesses in our study consider it their duty to embrace values that contribute to nation-building, which is evident in their diversified staff complement. Employees represent diverse racial, social and ethnic backgrounds, as well as genders and ages. Diversity is a value because the belief in and the need to embrace and build a ‘rainbow nation’ guides behaviour and decisions. Furthermore, an inclusive environment promotes fair treatment among members of the organisation. For example, the participating family businesses place significant value on treating all people equally without discrimination and favouritism. The importance of treating people fairly is particularly evident in how next-generation family members are treated compared to non-family members. The findings suggest that favouritism is not shown towards next-generation family member employees who are treated like normal employees. These businesses believe that every person has value and should be treated with respect, and that no one’s worth should be judged based on external factors such as class or status. Additionally, these businesses demonstrate the value of fairness by showing empathy in their interactions with external stakeholders, especially customers, and by promoting a more inclusive and compassionate society.
Coexistence values also foster an organisational culture characterised by high levels of trust. These businesses uphold trust because employees must execute the duties assigned to them, fostering strong working relationships and contributing to the success of the family business. Employees who demonstrate their trustworthiness are promoted in the family business and assigned more sensitive business duties. It is perceived that, by upholding the value of hard work, these businesses specifically value the efforts individuals put into the family business when completing assigned tasks. The importance placed on hard work is also evident in the fact that both family and non-family employees in the participating family businesses work many hours of overtime. Similarly, the coexistence value of accountability is demonstrated by tolerating employee mistakes and encouraging them to accept responsibility for their mistakes and for their work. Importance is also placed on employees accepting that the work they do should be done well so that it contributes to the overall success of the family business.
Coexistence entails accepting and respecting other people’s opinions and ideas (Ngubane & Makua, 2021). Our findings show that open communication is valued because business founders and current leaders are accommodating and receptive to new ideas and diverse stakeholder views, and they openly share information with all family business employees. Various communication platforms are used by family businesses to continuously engage with their internal stakeholders, enabling them to share their views and ideas and to openly share information with them.
Compassion values
The African ethic of Ubuntu is characterised by a positive relationship with others in strictly communal terms, in which one has a moral obligation to be concerned for the good of others (Metz & Gaie, 2010). Ngubane and Makua (2021) highlight that Ubuntu philosophy thrives on the value of having compassion towards other members of the community. Among the indigenous African people, compassion fosters a sense of belonging and interconnectedness observed in African communities (Udah et al., 2025). Compassion values associated with Ubuntu philosophy include compassion, kindness, generosity, hospitable, mutual care, solidarity, community, togetherness, love and sympathy towards others (Makhubu et al., 2018; Ngubane & Makua, 2021; Van Breda, 2019).
Based on our study, compassion values found to be related to Ubuntu included benevolence, community, humanness, humility, customer focus and employee empowerment. These values emphasise the importance of recognising and alleviating stakeholders’ suffering (e.g. employees, community and customers), fostering a sense of connection and promoting a more caring and supportive community. We suggest that cultivating compassion values helps create a more compassionate and empathetic environment, where businesses actively contribute to the well-being of their stakeholders. As is evident from the participating family businesses’ efforts to preserve and enhance others’ welfare, benevolence underlies their endeavours. For example, for Participant 3, caring for others is important to them within their family and in the context of the family business, especially when customers are struggling financially and in need. As we observed in our study, being customer-focused means that family businesses place great emphasis on keeping their customers happy. They keep their customers happy by going the extra mile to meet their needs and by keeping the promises they make. Listening to customer concerns and understanding their needs reinforces the value that the family businesses place on being customer focussed.
The participating businesses place great importance on community, which Udah et al. (2025) describe as the cornerstone of Ubuntu in African ethics. The participants demonstrate this value by showing concern for the communities in which they operate and by giving and investing in them through charitable activities. These charitable activities included supporting community soccer tournaments, schools and churches, as well as raising funds for local charitable organisations.
Promoting compassionate values helps foster a sense of connection among the family business members. Participant 11 underscores the importance of values such as sharing by describing communal activities in which employees come together to prepare and share a meal. Similarly, compassion is shown towards employees by developing and empowering them through education and training and by giving them opportunities for independent decision-making. A belief in empowerment is evident in the way employees are given greater freedom to make business decisions on behalf of the family business.
Values as antecedents of ethical business outcomes
Our study has identified seventeen values that underlie ethical decisions and behaviour in family businesses. According to the literature, values are antecedents of ethical business outcomes that contribute to long-term business survival (Ogbechie & Anetor, 2015). Similarly, the values we identified in our study were associated with several business outcomes, namely organisational transparency, employee engagement, customer satisfaction, societal impact, long-term value creation and organisational identity and reputation. These outcomes were developed based on participants’ quotes that suggested associations between ethical values and outcomes. A Sankey diagram was developed to visually represent the proportional relationships between the identified ethical values and business outcomes (See Figure 1).
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FIGURE 1: Sankey diagram on values and business outcomes. |
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From Figure 1, it is evident that the importance placed by family businesses on open communication, accountability, trust, professionalism and honesty enhances their organisational transparency. Schnackenberg and Tomlinson (2016, p. 1788) define organisational transparency as ‘the perceived quality of intentionally shared information from a sender’. There is a widely held view that transparency benefits organisational performance by reducing employee uncertainty. As observed in our study, transparency is evident in how the family businesses share confidential information with their employees.
Our study shows that ethical values enhance employee engagement. Values worth noting include employee empowerment and humanness. Family business leaders acknowledge that demonstrating values that care for the development, empowerment and well-being of their employees fosters a working environment where employees feel valued and respected for their contributions to the family business’s success. Demonstrating compassion towards employees has long been associated with high employee outcomes such as morale, commitment and satisfaction (Cao & Chen, 2021). In organisations where compassion is upheld and fostered through employee empowerment and development, employees perceive themselves as being favourably treated by their leaders (Muzee et al., 2021), leading them to stay longer in the business. Associated with employee engagement are the values of professionalism, honesty and respect, which are upheld by the participating family businesses. These values foster working relationships that influence employee working behaviours.
In our study, it is evident that importance is placed on providing quality services and products to customers to enhance customer satisfaction. Other related values, such as respect, honesty, fairness and reliability, were also found to foster customer satisfaction. Organisations that foster ethical values instil trust among their customers, resulting in satisfied, committed customers. Organisational ethical behaviour significantly influences customers’ satisfaction levels (Mansouri et al., 2022).
Participating family businesses acknowledge that most of the identified values contribute positively towards the society and local communities they serve. Values related to societal impact include humanness, benevolence, community and humility. As suggested by Kurznack et al. (2021), the need for organisations to show that they are good corporate citizens who add value to society has never been greater. Our study shows that family businesses engage in socially responsible activities, demonstrating their level of connectedness to the communities they serve. By being socially responsible, family business leaders foster long-term value for their family businesses.
In our study, ethical values were associated with long-term value creation for family businesses. Long-term value creation is fundamental to organisations such as family businesses as it emphasises sustainability and enduring success over an extended period (Kurznack et al., 2021). Long-term value creation implies a focus on optimising financial, social and environmental value over the long term, a focus that provides a more sustainable economic model for businesses (Schoenmaker & Schramade, 2019). The participating family businesses place importance on customer focus, employee empowerment, benevolence and reliability, enabling them to build positive relationships with a broad set of stakeholders and fostering long-term value creation.
Similarly, the organisational identity and reputation of the participating family businesses are mainly influenced by their ethical behaviour and how stakeholders interact with or experience these businesses. The focus of these businesses on ethical values such as employee empowerment, customer focus, professionalism, community, benevolence, humility, fairness and honesty is driven by their need to create a favourable image of their businesses, which contributes to a strong family business reputation. A favourable business reputation is crucial for long-term value creation in family businesses as it contributes to sustainability and longevity.
Conclusion
Ethical values are antecedents of ethical behaviour in family businesses, which in turn contribute to several business outcomes, namely organisational transparency, employee engagement, customer satisfaction, societal impact, long-term value creation and organisational identity and reputation. Figure 2 presents a framework for Ubuntu-inspired ethical values in shaping ethical behaviours in family businesses and their association with different business outcomes.
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FIGURE 2: A framework for Ubuntu-inspired ethical values and business outcomes. |
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Our study demonstrates that ethical values found in indigenous African family businesses are related to three categories of Ubuntu values, namely relational, coexistence and compassion values. By using relational values, family businesses navigate and nurture positive, meaningful relationships with employees and communities by promoting trust, respect, honesty, professionalism and open communication in both social and business contexts. Coexistence values create an inclusive work environment and nurture a sense of tolerance, accountability and work ethic among family business employees. From a family business perspective, employees need to develop a sense of responsibility in executing their tasks, which promotes hard work and accountability for their actions and decisions. The success of the family business depends on the extent to which employees can coexist in the workplace to fulfil their assigned duties. We suggest that cultivating compassion values helps create a more compassionate and empathetic environment, where the family business actively supports the well-being of its stakeholders.
We found that relational, coexistence and compassion values reinforce each other and manifest simultaneously in African family businesses. While relational values guide relationships and connections, and coexistence values facilitate interactions and cooperation among family business members, compassionate values place great importance on showing genuine concern for others’ well-being. Ngubane and Makua (2021) posit that compassion values facilitate other values by keeping members of the cultural community together and strengthening bonds of togetherness and solidarity. These values are underpinned by the principles of humanness and humility, which are central in indigenous African cultures. The concept of humility is rooted in indigenous Black African culture, which is characterised by a sense of humanness and caring for other members of the community (Metz, 2021), as is evident among the participating family businesses.
Contributions to theory
Our study approached values as antecedents of ethical behaviour and business outcomes in IBSA family businesses. In particular, we aimed to identify ethical values in an indigenous African family business context by applying the Ubuntu philosophy as an alternative to traditional perspectives exploring ethical values. By doing so, this study contributes to the family business literature on values and ethics, as well as to broader conversations in management and organisational behaviour.
Contributing to the growing body of research suggests that ethical values are a source of social information that shapes employees’ responses to events or treatment in their work environment (Zagenczyk et al., 2021), we assert that the ethical values of family businesses serve as a lens that shapes stakeholders’ attributions for ethical decisions and behaviour. That is, ethical decision-making often leads to a positive organisational culture, better relationships with stakeholders (Kurznack et al., 2021), increased trust (Triatmanto & Arifin, 2026) and enhanced organisational reputation (Binz Astrachan et al., 2017), all of which contribute to the sustainability and longevity of family businesses.
Drawing on Ubuntu, our study advances knowledge of ethical values in family businesses by proposing a new framework for categorising and understanding these values. It is our anticipation that the proposed framework of value categories, namely relational, coexistence and compassion values, can help overcome long-standing intellectual conflicts on the nature of ethical values and Ubuntu in the African context and provide a conceptual basis flexible enough to encompass the fluidity and plurality of values associated with Ubuntu. Specifically, the framework for value categories can help scholars to apply ethical values in a business context.
The identification of ethical values in IBSA family businesses is important for preserving their organisational identities. As cultures are systems of values that subconsciously and silently drive people to make decisions in organisations, values are central to the formation of organisational identity (Ratnawati et al., 2024). In this study, we argue that ethical values are seen as reflecting the organisational identities of family businesses as they represent what they stand for and what they do (Hay et al., 2021).
Exploring the manifestations of ethical values helps family businesses make a social impact in the communities they serve and build positive stakeholder relationships (e.g. employees, customers and suppliers) (Kurznack et al., 2021). By understanding the ethical values that influence decision-making and behaviour (Reck et al., 2022), family businesses can align their practices with values that contribute to long-term sustainability. As ethical values are antecedents of ethical behaviour in organisations (Ogbechie & Anetor, 2015), they provide clarity about behavioural expectations within family businesses. That is, our study provides a framework for ethical conduct, helping family and non-family business members understand the standards and behaviours that are valued and expected in these businesses. As Reck et al. (2022) highlight, in-depth research into the ethical behaviour of family businesses can provide invaluable insights for decision-making.
Practical and managerial implications
The identified ethical values in this study were related to relational, coexistence and compassion values. Therefore, we recommend that family businesses adopt values that are relational in nature (e.g. respect, trust, honesty, open communication, reliability, fairness) to foster connections, communication and mutual understanding with stakeholders. For example, family businesses should treat internal and external stakeholders respectfully and without discrimination. Similarly, transparency should be fostered in financial matters and business decisions by sharing relevant information with family members and employees, promoting trust and respecting contributions from all members. Furthermore, family business leaders can promote open communication by clearly defining policies, roles and responsibilities for family members and employees. Creating regular forums, such as team-building sessions, where family and non-family employees will feel comfortable expressing their opinions and concerns, is also suggested. We envisage that promoting relational values in family businesses will help avoid misunderstandings and conflicts while cultivating a positive work environment.
We recommend that coexistence values (e.g. diversity, respect, accountability, hard work, humanness, humility and open communication) should be promoted to nurture harmonious interactions and cooperation among individuals and groups in family businesses. That is, family businesses can promote inclusivity by hiring diverse employees and listening to and appreciating different viewpoints. Demonstrating receptivity to diverse opinions and perspectives will foster a more inclusive and collaborative family business environment where all employees feel a sense of belonging, enabling them to align with the family business’s values and purpose.
Furthermore, we suggest that family businesses embrace compassion values (e.g. benevolence, community, customer focus and employee empowerment) because these are rooted in the ethical principles of empathy, understanding and mutual care (Miralles-Armenteros & Guinot, 2023). Showing empathy towards employees by actively listening to their concerns and offering employee assistance programmes that support employee personal development sets the tone for a compassionate organisational culture, one that creates a sense of interconnectedness among employees. Similarly, engaging in socially responsible initiatives reflects the family business’s commitment to making a positive impact on society and local communities. Since family businesses are well known for promoting non-financial goals that address social challenges (Binz Astrachan et al., 2017), upholding and demonstrating compassion values could drive positive change in local communities where family businesses operate, thereby reinforcing their embeddedness in social and local issues.
While we believe that family businesses should embrace ethical values, we recommend upholding them to foster sustainable ethical behaviours that contribute to business outcomes. Ethical values such as customer focus, employee empowerment and reliability are crucial in developing long-term value, which is important for the sustainability of family businesses. We suggest that other ethical values that contribute towards the creation of long-term value for the business should not be neglected by leaders. Therefore, societal impact, organisational transparency and organisational reputation should be considered to fully maximise long-term value creation in family businesses.
We further argue that embracing and promoting ethical values can serve as a unique selling proposition for family businesses. In today’s global marketplace, consumers often prefer organisations that demonstrate social responsibility and ethical behaviour, providing a competitive advantage (Kurznack et al., 2021). Therefore, by identifying these ethical value sets and their associations with business outcomes, family business scholars, practitioners and stakeholders can understand how they manifest in a family business context.
Limitations and future research
Our study has some limitations that offer interesting avenues for future research. Initially, our study examined ethical values at the organisational level and did not identify differences among the ethical subcultures within the family businesses under investigation. Future studies may be important to demonstrate that ethical subcultures are relevant to the study of ethical values in family businesses. For example, future research may investigate the ethical value sets upheld by different family business subcultures, including founders and leaders, next-generation family employees and non-family employees. Furthermore, although our study utilised a mix of old and young family businesses, our focus was not on comparing the ethical value sets within these businesses. In this regard, we recommend conducting a comparative study to identify similarities and differences between older and younger family businesses. In addition, future studies could examine the manifestations of ethical values in other population groups, such as Coloured-, Asian- and White-South African-run family businesses. The inclusion of other population groups will provide greater insights into comparative dynamics across diverse ownership groups, enriching contextual understanding.
Acknowledgements
This article includes content that overlaps with research originally conducted as part of Welcome Kupangwa’s doctoral thesis titled ‘A framework for transmitting and entrenching values in indigenous black South African family businesses’, submitted to the Faculty of Business and Economic Sciences, Nelson Mandela University in 2021. The thesis was supervised by Shelley Maeve Farrington and co-supervised by Elmarie Venter. Portions of the data, analysis and/or discussion have been revised, updated and adapted for journal publication. The original thesis is publicly available at: https://vital.seals.ac.za/vital/access/manager/Repository/vital:46171?site_name=GlobalView&exact=sm_subject%3A%22Family-owned+business+enterprises+--+South+Africa%22&f0=sm_creator%3A%22Kupangwa%2C+Welcome%22. The authors affirm that this submission complies with ethical standards for secondary publication, and appropriate acknowledgement has been made of the original work.
This article is based on a conference paper originally presented at the 7th International Family Business Research Forum, held in Cyprus, on 29 October 2024 to 30 October 2024. The conference paper, titled ’Manifestations of Ethical Values in Indigenous African Family Businesses: An Application of the Ubuntu Philosophy’, was subsequently expanded and revised for this journal publication. This republication is done with permission from the conference organisers.
Competing interests
The authors declare that they have no financial or personal relationships that may have inappropriately influenced them in writing this article. The author, Elmarie Venter, serves as an editorial board member of this journal. The peer review process for this submission was handled independently, and the author had no involvement in the editorial decision-making process for this article. The authors have no other competing interests to declare.
CRediT authorship contribution
Welcome Kupangwa: Conceptualisation, Data curation, Formal analysis, Funding acquisition, Investigation, Methodology, Project administration, Resources, Software, Validation, Writing – original draft, Writing – review & editing. Elmarie Venter: Funding acquisition, Supervision, Writing – review & editing. Shelley M. Farrington: Funding acquisition, Supervision, Writing – review & editing. All authors reviewed the article, contributed to the discussion of results, approved the final version for submission and publication and take responsibility for the integrity of its findings.
Ethical considerations
Ethical clearance to conduct this study was obtained from Nelson Mandela University and Human Research Ethics Committee (No. [H19-BES-BMA-004]).
Funding information
The Nelson Mandela University’s Research Development Office partly sponsored this research. All the researchers, Welcome Kupangwa, Elmarie Venter and Shelley M. Farrington, privately sourced some of the funds.
Data availability
The data that support the findings of the study are available upon reasonable request from the corresponding author, Welcome Kupangwa. The data are not publicly available because of containing information that could compromise the privacy of the research participants.
Disclaimer
The views and opinions expressed in this article are those of the authors and are the product of professional research. They do not necessarily reflect the official policy or position of any affiliated institution, funder, agency or that of the publisher.
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