THE ROLE OF GOOD GOVERNANCE IN CONFLICT MANAGEMENT A LIFE STORY OF FAMILY MEMBERS PARTNERSHIP The Case of PT Blind-Trust -Family Business in Bandung
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Date
2006-11-20
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Publisher
Indonesian Family Business Network, IEFBA dan Universitas Widyatama
Abstract
Family business' important role in Indonesian economy, has been calculated as 82,44% of 165, 000 medium and small enterprises registered in the statistical census in 1996 (Faustine, 2001). It has been also predicted that most of the large companies which have turned into multi-national corporation, were previously started as small family owned businesses.
Among those family owned businesses, several of them could not sustain into generations. Many factors can be the triggers of this condition, one among many is information risk. An example for information risk is: unregistered transaction, which causes difficulties when correct information is retrieved. Another form of information risk is: Inaccurate registration of transactions. In most cases, it is the result of trusting family business members without any further control or blind-trust. This condition will lead to difficulties in auditing for managing the company. Correct data are crucialfor control tools in any companies activities or processes
This paper revealed a true discontinuity case offamily business, which could be avoided should the family business members realized the importance ofhaving Certified Public Accountant.
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Keywords
family business,, information risk,, investigated audit,, certified publ ic accountant