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Abstract

In recent debates, the purpose of a company has been questioned and redefined to include social and environmental concerns, as well as to address the interests of a broader set of stakeholders than solely focusing on shareholders. This case uses data from annual reports, sustainability reports and news articles to discuss the history and prospects of the Danone Group, a French publicly traded company, as a purpose-driven corporation. As a company with an economic purpose along with a social mission since the 1970s, the Danone Group recently obtained the B Corp certification (2018) and the French Entreprise à Mission legal status (2020). Nevertheless, Danone’s management team was criticized for mismanaging the company in 2020. The case describes the events leading up to the dismissal of Danone's CEO Emmanuel Faber and prompts us to question the company's status as a purpose-driven organization. Students are invited to engage in a broader debate about the role of business in society.

Teaching and learning

This item is suitable for undergraduate and postgraduate courses.

Geographical setting

Region:
Europe
Country:
France

Featured company

Danone
Employees:
10000+
Turnover:
EUR 27.7 billion
Type:
Public company
Industry:
Food and beverage
Other keywords:
CAC40; entreprise à mission

About

Abstract

In recent debates, the purpose of a company has been questioned and redefined to include social and environmental concerns, as well as to address the interests of a broader set of stakeholders than solely focusing on shareholders. This case uses data from annual reports, sustainability reports and news articles to discuss the history and prospects of the Danone Group, a French publicly traded company, as a purpose-driven corporation. As a company with an economic purpose along with a social mission since the 1970s, the Danone Group recently obtained the B Corp certification (2018) and the French Entreprise à Mission legal status (2020). Nevertheless, Danone’s management team was criticized for mismanaging the company in 2020. The case describes the events leading up to the dismissal of Danone's CEO Emmanuel Faber and prompts us to question the company's status as a purpose-driven organization. Students are invited to engage in a broader debate about the role of business in society.

Teaching and learning

This item is suitable for undergraduate and postgraduate courses.

Settings

Geographical setting

Region:
Europe
Country:
France

Featured company

Danone
Employees:
10000+
Turnover:
EUR 27.7 billion
Type:
Public company
Industry:
Food and beverage
Other keywords:
CAC40; entreprise à mission

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