Governance is Love, Structured to Last.

By Prof. Enrique N. Soriano

There was one case we encountered that painfully illustrates how entitlement can quietly grow within a family business. It involved a third-generation heir of a successful regional retail chain. From early childhood, this heir was shielded from criticism and granted a generous allowance that grew larger each year—even after repeated failures at small ventures financed by the family.

The founder—driven by love and an instinct to protect—never required him to start at an entry-level position or report to professional managers. Lavish gifts became the language of affection, substituting for the more demanding but ultimately transformative gift of mentorship. At family board meetings, any discussion of his underperformance was carefully avoided, all in the name of keeping peace.

By the time the founder passed away, the heir held an impressive senior title but lacked the competence, discipline, and resilience to make difficult decisions. Within just a few years, mismanagement and unchecked spending eroded decades of steady growth, sparking internal family conflicts and dragging the business into decline.

This is how entitlement is slowly—and unintentionally—cultivated: through love expressed as protection rather than preparation. The very instinct meant to preserve the family legacy becomes the force that threatens to destroy it.

The lesson is clear: do not wait for a crisis to force change. Governance isn’t an emergency measure, like a fire extinguisher brought out when flames erupt. Rather, it is a fire prevention system—quietly built and maintained while the family remains united, hopeful, and willing to talk.

Entitlement rarely arrives overnight.

More often, it is cultivated over decades of well-meaning, but ultimately harmful choices:

• Shielding heirs from failure so they never learn the sting of accountability.
• Mistaking love for lavish gifts rather than emotional presence and mentorship.
• Blurring the boundary between family loyalty and professional roles.
• Avoiding hard conversations to preserve harmony—until silence finally explodes into conflict.

This “invisible curriculum” quietly teaches the next generation that wealth is a right, not a responsibility. The result? Successors who may inherit power but lack the inner compass and discipline to wield it wisely.

Behind many family business failures lies the same pattern: generations who were loved deeply, but not prepared thoroughly. Wealth becomes a burden when successors see it only as inheritance, rather than as a responsibility tied to stewardship.

Governance, done right, is love in structured form. It channels care and loyalty into systems that protect the family’s values, relationships, and the business itself. It moves the family from an emotional, personality-driven structure to one anchored by shared agreements and clarity.

Yet governance is often misunderstood. 

Some see it as restrictive, even cold—rules and policies that stifle family bonds. But when rooted in shared purpose, governance becomes the opposite: a living expression of love that endures even when disagreements arise.

It is easier to talk about governance when times are good. But ironically, families often delay until tensions surface and trust begins to erode. At that point, each conversation feels heavier, and the risk of misunderstanding grows.

The wisest families act early, while relationships remain intact and open dialogue is still possible. They recognize that the cost of inaction—measured in family division, lost assets, and broken trust—far outweighs the discomfort of difficult but necessary conversations.

Ultimately, governance is not about control—it is about care.

It is not about diminishing love—it is about making that love last beyond a single generation. This work isn’t about writing documents to put in a drawer. It’s about nurturing successors who understand: wealth is not a prize, but a profound responsibility. And that sense of responsibility—rooted in family values and codified in governance—is what sustains legacies far beyond any founder’s lifetime.

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If this topic resonates with your family or you’ve witnessed similar struggles in your own boardroom or dining room, we invite you to join our upcoming in-person masterclass in Iloilo City this November 8, a Saturday.  Due to the limited number of seats, interested families may inquire now at wb@wbadvisoryasia.com and look for Maica.

Together, we’ll explore how to shift from blind inheritance to responsible stewardship, equip next-generation leaders, and protect your family legacy for generations to come.