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able sustainable investors if you want sustainable capitalism. If not, then sustain-
ability is just a word.
We thus recommended the creation of what we call l’entreprise à mission
provisions in the corporate charter. Companies can, if they wish, state that their
purpose includes fulfilling specific long-term social or environmental initiatives.
This provides companies with security that they can focus on a mission without
fear of legal repercussions from their investors or any other outside parties.
Once you have that framework, you can redirect the companies that assess
other companies: the Standard & Poor’s and Moody’s of the world. And their
ratings can then be linked more closely to sustainable practices.
We proposed that this approach be written into the French civil code, which
had not been changed since 1807. It said that companies should be run for the
benefit of their investors and similar associates and no other purpose. It was ob-
solete. In the end, the civil code was brought up to date.
S+B: How would these principles be turned into everyday practice?
SENARD: In our report, we suggested a few basic ideas. For example, employees
should have a larger share in the decision-making process. It is good, for many
reasons, to have employee representatives sitting on your board.
We also suggested that companies establish a separate stakeholder board,
which cannot be linked to the management board directly — and which includes
customers, suppliers, NGOs, international workers’ unions, and that sort of thing.
This is to embed in the company’s leadership a greater awareness of the external
impact of their decisions.
Responsible capitalism
S+B: This approach to corporate governance seems like a fairly radical change.
What did your peers among business leaders say about it?
SENARD: There was a fierce debate. A number of corporate leaders reacted an-
grily. They were concerned that they would be increasing their risk of being at-
tacked by the public — for example, by NGOs. Honestly, it’s true that in surveys
of the public, confidence in big companies today is extremely low.