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more broadly, it could change the way companies define their raison d’ être. Re-
sponsible capitalism, as he sees it, is a necessary remedy for the kind of corporate
overreach that has led to nationalist, populist, and anti-globalist movements.
Without a more earnest effort by major companies and investors to broaden pros-
perity and quality of life, Senard warns, there will be more backlash against free
enterprise, more authoritarian governments, more arbitrary regulation of compa-
nies and markets, and more stringent restrictions on free trade.
In April, Senard sat down with strategy+business at Michelin’s offices outside
Paris. He talked about his vision of capitalism, the report, the future of the auto
industry (including the Renault–Nissan–Mitsubishi alliance), and his own ap-
proach to management and leadership.
S+B: How did the PACTE project come about?
SENARD: In 2017, the French parliament was trying to settle a debate among
its members about corporate governance: how to define the duties of compa-
nies to their investors, versus their responsibility to workers and external
stakeholders. One faction wanted to create laws specifying a tremendous
number of social and environmental responsibilities for companies. This
would have created a real difficulty for them. Another faction was afraid of
any reform at all; they felt that business leaders would be unfairly attacked by
the judiciary and NGOs, and this would stifle innovation and economic
growth. The government asked Nicole Notat and me to try to find a way to
solve this issue.
Jeffrey Rothfeder
is a contributing editor of
strategy+business and author
of a number of books about
manufacturing and the
auto mobile industry, including
Driving Honda: Inside the World’s
Most Innovative Car Company.