Awareness of the responsibility of the company towards the Company, laws and regulations multiplied since 2001 on the subject, rise in importance of “citizen consumption”, the social responsibility of the company is in the spotlight. agenda and is translated into action.
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But a question remains: what is the precise field of the societal, often equated in a reductive way to that of the social? Protest movements in the United States to denounce systemic racism: social crisis or societal movement? Detachment of a block of ice at the South Pole: environmental crisis or societal issue? To each his own interpretation. Another question remains: what role for the company in all of this?
The end of a certain business model
The debate is old but has intensified greatly over the last decade. Initiatives have emerged, with various national and European regulations and “soft law” recommendations (AFEP-Medef code, Sustainable Development Goals, Global Reporting Initiative, etc.). Two years ago, with the PACTE law, article 1833 of the Civil Code was revised to endorse the end of the business model of the company intended only to be managed in the common interest of shareholders. . All decision-makers must now consider the financial, social and environmental issues and consequences that their activity raises on their ecosystem and on society as a whole.
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This modification of the law broadened the social purpose of the company, with the ambition to cover the ethical, social and environmental dimensions of the policies and actions that it carries out. That’s why we’ve been talking about Societal and the Covid 19 crisis has reinforced the importance of this term.
Beyond the environmental and social
The societal obviously intersects the environmental and the social, centered on the responsibility of the company towards its employees, but goes further. At a minimum, it aligns with legal obligations in terms of management and organization of the company, such as equal remuneration for men and women, the feminization of management and governance bodies, the duty of vigilance, circular economy, but also on the declaration of extra-financial performance. It can go further by preempting respect for human rights, inclusion, relations with stakeholders, anchoring in the territories and relations with civil society actors.
The societal also involves the proactive commitment of the company to integrate social issues into the reflections of its management and governance bodies and in the strategic orientations it gives itself, as well as in its interactions with stakeholders. its ecosystem and civil society. When the commitments communicated are sufficiently precise, they can become a source of obligation and responsibility. But, beyond the coercive aspect, it should above all be seen as a potential for value creation and an act of good governance likely to ensure the sustainability and the sustainable and harmonious development of the company.
New opportunities
It is therefore imperative for managers and members of the board of directors, as guarantors of the values and the future of their company, to integrate the full dimension of societal issues in order to be able to seize the opportunities.
→ CASE OF CONSCIOUSNESS. Does my business need a purpose?
Which imposes:
– Make the societal one of the priorities of the strategic plan and the analysis of the risks of the company;
– Integrate the societal into the policies and actions carried out and have in-house the appropriate elements of assessment and measurement;
– Open the field of governance and enter into a continuous, transparent and constructive dialogue with stakeholders, if possible by creating a stakeholder committee and integrating ESG (1) into the management and governance of the business ;
– Reaffirm the meaning of the company’s commitments and thus federate internal and external energies around a shared project by reinforcing this approach, where appropriate, by adopting a raison d’être;
– Develop internally, both within the operational and management teams as well as the board of directors, the appropriate skills and sensitivities to create a financial and extra-financial symbiosis.
Towards responsible capitalism
This is how the company will be able to quickly adapt its business model, seize opportunities linked to societal issues, have a positive impact on society and change its internal culture to meet the growing expectations of the millennial generation.
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It will thus contribute to the new economic, social and societal model, will meet the requirements of the revised article 1833 of the Civil Code and will make a contribution to the building of a true “responsible capitalism” in our mature economies.
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