Abstract
Danone’s story of looking for a larger purpose beyond short-term profits seemed to come to an ignominious end in 2021. The then-chief executive Emmanuel Faber was removed by the board of directors following pressure from activist investors who claimed that prioritising environmental, social and governance issues hurt the company’s financial returns.
Others argued that the relative underperformance was driven by market conditions unrelated to ESG spending, but the activists had a point about Faber going all in on ESG. The year before his firing, Danone became the first listed company to adopt a new French legal status, formally embracing société à mission — its status as a mission-driven company.
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Related:
Sustainable Proteins, Columbia Business School’s Climate Knowledge Initiative