Mission-Driven Company: What Would Jesus Think of Danone's Decision?

On May 19, 2020, Emmanuel Faber, CEO of Danone, was finalizing his press release to announce a revolutionary decision: Danone aims to become the first mission-driven company listed on the stock exchange. He and his financial communications team believed this announcement would create a significant impact across editorial offices.

The date of May 19th is not insignificant; it marks the 11th anniversary of the death of Danone's founder, Daniel Carasso, who passed away at the age of 103. “Danon” (meaning “little Daniel” in Catalan)) was the nickname his father gave him. Emmanuel, slightly superstitious, appreciates the number eleven and holds great reverence for the legacy left by his professional ancestor.

But what will parents think about this announcement as they gather in a café after church ? Emmanuel can imagine that this is where people will decide whether this shocking announcement is sincere or superficial. In any case, this successful and flamboyant fifty-something knows this day will be marked in his diary.

As soon as the announcement was made, it spread around the world at lightning speed. A dear friend of mine exclaimed, “Let’s meet and make sense out of it.” Upon greeting me with a Namaste—a gesture of peace—he asked me directly:

“In your opinion, if Jesus came back today, what would he think of Danone? Would he apply for a job there? Would he buy their shares? Would he consume their products? Tell me, what would Jesus Drive?”

As soon as the announcement was made, it spread around the world at lightning speed. A dear friend of mine exclaimed, “Let’s meet and make sense out of it.” Upon greeting me with a Namaste—a gesture of peace—he asked me directly:

“In your opinion, if Jesus came back today, what would he think of Danone? Would he apply for a job there? Would he buy their shares? Would he consume their products? Tell me, what would Jesus Drive?”

To my cautious response, he said, “Don’t be such a scaredy-scorpion! Is the mission-driven company the solution for businesses that want to do good while still making profits?” It does seem like a substantial step forward. Danone, much like Alibaba, is setting an example before the 40 companies listed on the CAC join in. Philosophically, it feels as though we’re on the brink of an era where profitability can coexist with generosity.

Holding the four-page press release, Emmanuel speculated on the questions Jesus might have had regarding Danone as a mission-driven company.

1. How generous is the CEO?

“The CEO has decided to reduce his fixed remuneration by 30% for the rest of 2020 in a spirit of solidarity.”

Well done, I thought. Reducing one’s salary to improve employee health insurance deserves recognition; however, 30% of the fixed amount over six months roughly equates to about 6% of the total annual net salary after taxes.

2. Who will benefit from this generosity?

“It is now clear that we need a model to value creation and sharing, one that takes all stakeholders into account.”

Sure, they could have been more straightforward. If consumers will pay less and farmers will earn more, then let’s give another round of applause.

3. Will small shareholders benefit?

“Danone will be able to provide shareholders with a consistent and reasonable dividend payout ratio.”

Phew! Small shareholders haven’t been forgotten—but the terms “consistent” and “reasonable” remain ambiguous. Press releases can sometimes be hard to decipher.

4. Are mission-driven companies worthy of unconditional love?

“Danone is committed to adopting new governance methods to monitor the achievements of its social, societal, and environmental objectives.”

That sounds more like a sign of mistrust than trust!  Why spend money to be monitored more? They say trust doesn’t exclude control. That can be true, but it surely makes trust seem extravagant.”

5. Will companies with a mission demonstrate humility?

“Being a company with a mission allows Danone to pursue B Corp TM certification for all its activities worldwide.”

Is this just a certificate of good morals? Remember, Mother Teresa didn’t hand out labels of goodness to her volunteers. Emmanuel knows this. Plus, B Corp certification is proportionally more expensive for small companies than for large ones—so I’m left wondering.

My friend stops there and downs his calvados coffee in one gulp, much like his late grandfather, who sold milk to Yoplait. “So, what do you think?” he asks. I believe that Emmanuel Faber is undoubtedly a good man. Through his commitment to transforming Danone into a mission-driven company, he is attempting to overcome the original suspicion of cunning. The economy of certification and verification of genuine goodness thrives on this suspicion and on companies' desires to promote themselves to the world. It is important to remember that the mission-driven company was born out of necessity; the ESSs didn’t truly embrace this unusual creation. As VGE would say, no one has a monopoly on compassion.

For a company that aims to do good while also making a profit without adopting a purely technocratic approach, I recommend that, in addition to its current efforts, it should strive to become a sentimental company. This means a company that dares to help, value, support, and recognize—essentially, love—all the individuals connected to it. A company that prioritizes nature over merely the “environment,” and smiles instead of focusing solely on “social” or “societal” indicators. A company that can harmonize generosity with competitiveness. Trust, collectivity, frugality, and solidarity can save millions!

And here’s the best part: this sentimental company can thrive without necessarily seeking glory, accolades, or reciprocation. While being poor does not equate to being honest, one can also be generous without the need to write checks. Offering sincere attention to the needs of individuals—often referred to as "stakeholders"—can make a significant difference.

The worst sin is pride. As cunning as it may be, it often hides behind our good intentions. After all, the road to hell is paved with good intentions.

Sentimentalement vôtre and see you next week.

Crédit photo : © D.R. Emmanuel Faber, PDG de Danone