"By the end of 2018, each of Danone’s 100,000 employees will have been invited to actively engage and participate in shaping the future towards the Danone 2030 Goals and implementing them to co-create new futures," the group said at its Shareholders’ Meeting on 25 April. This "model of participative governance", applies the principle of "One Person, One Voice, One Action", which is usually used in cooperative business model.
One Person, One Share
"Our goal is to entrust the future of the company to our teams", explained Emmanuel Faber. "All decisions were unanimously supported by the board of directors, after discussion, and they will be put in place gradually throughout year," he assured.
"It's time for everyone at Danone to become a co-shareholder of the company," Faber said. In concrete terms, Danone will award one share to each of its 100,000 employees following the model of profit-sharing related to its employment contract. This will be combined with an incentive mechanism" based on an annual, amplified dividend-based scheme". And "a global system comparable to that of our company mutual fund (FCPE), allowing employees in France to buy shares at preferential prices, will gradually be put in place," the CEO added.
Employees will be able to voice their opinions, both on the priorities of the company and on the elaboration of local and global roadmaps for 2030. To this end, employees will have an internal platform at their disposal with "in-depth training modules related to our vision and objectives".
These objectives (nine in total) are defined by the vision "One Planet, One Health". They aim to ensure "sustainable and profitable" growth for the company, but also "more inclusivity". For this reason, their initiatives are linked to the United Nations Sustainable Development Goals (SDGs). As stated by the CEO, Danone has also reaffirmed its ambition of being B Corp certified, an American label with a strong focus on CSR (corporate social responsibility).
“We also intend, in consultation with our social partners, to create a link between this participative governance with our employees and our board of directors in order to exploit its richness and to recognise its central role by inscribing it in Danone's own governance”, assured the CEO.
Béatrice Héraud with AFP