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ments. They can decide at any point whether they stay with a stock — but they
can decide more effectively based on a broader set of criteria, not just profit.
S+B: A skeptical observer might say that responsible capitalism doesn’t pay
off, even in the long run — at least not when compared with a pure profit
strategy that isn’t concerned with environmental and social matters. What do
you say?
SENARD: If you consider that question solely in the context of short-term profits,
they may be right. Some investments in R&D may be necessary for long-term
growth and viability; they might affect, for example, the environmental impact
of your future products and services. And they might involve short-term costs.
But if companies are punished for that kind of investment, nobody is going to
make it. Capitalism is going to fail.
If you have a purpose that includes a well-considered level of social and
environmental responsibility, you’re going to increase your profits in the long
run. There have been many examples by now. At Michelin, we have been
investing massively in long-lasting performance for tires, environmentally
friendly products made from improved materials, and reducing the CO 2
emissions of everything we do. This involves a tremendous amount of re-
search. It is expensive. And yet the economic performance of Michelin has
improved year after year and without sacrificing our environmental track re-
cord. On the contrary, we insist on sustainability, because that’s how we cre-
ate value.