Damaging Behavior Directed Outside the Family Firm

The focus of the chapter is on negative behaviors committed by family firm leaders and members and directed outside the firm. These negative acts target and impact the family business’s external stakeholders and the business itself. They include fraud, financial misconduct, bribery/corruption, tax avoidance, tax evasion, and corporate social irresponsibility including negative environmental performance. Researchers across such disciplines as management, accounting, economics, and finance, working in the areas of financial misconduct, earnings management, tax avoidance/evasion, and fraud focus on behaviors by family firms that are often unethical or illegal yet in some cases are regarded as responsible and legal business practices, e.g., tax avoidance.