The debate on whether to impose the status of mission-driven company on private nursing homes for the elderly (Ehpad) came close to being resolved, but was ultimately abandoned in favor of a voluntary framework. This decision was made during the finalization of the “bien vieillir” law, which was officially passed on March 27th. The voluntary adoption of the status of mission-driven company is seen by some as a way to encourage greater accountability and authenticity among stakeholders in the industry. The debate, while not widely publicized, raised important questions about the specificities of the “economy of life” and the types of businesses that should be developed within this sector.
The concept of the “economy of life” encompasses sectors that are dedicated to protecting and improving life, such as health, food, water, energy, education, culture, and insurance. There is a growing societal demand for these sectors to operate in a way that does not harm the very things they aim to preserve. For example, the intensive agricultural practices that damage biodiversity and soil carbon storage, or the healthcare sector that often disregards the well-being of its employees and leads to risks of mistreatment. This shift in perspective calls for a reevaluation of how companies in these sectors are managed, moving away from a sole focus on shareholder profit towards a broader impact on employee well-being, customer health, and natural ecosystems.
The introduction of the mission-driven company status in 2019 by the Pacte law has been a step in the right direction, with over 1,500 companies already adopting this framework. These companies amend their statutes to include a mission statement, outlining their purpose as well as social and environmental objectives they commit to achieving. Oversight of the execution of this mission is carried out by a “mission committee,” a new governance body representing stakeholders affected by the company’s activities (employees, customers, environment), and an independent third-party organization, similar to an auditor for non-financial commitments. This approach aims to align business objectives with broader societal and environmental goals, ensuring that companies in the “economy of life” sector operate in a responsible and sustainable manner.
The push for mission-driven companies in sectors related to the “economy of life” reflects a larger shift towards a more ethical and sustainable approach to business. By requiring companies to prioritize not only financial profits but also social and environmental impacts, there is potential for a more holistic and beneficial relationship between businesses and society. This shift challenges traditional business models by emphasizing the importance of stakeholder engagement, accountability, and transparency in driving positive change in industries that directly impact human well-being and the environment.
While the debate on mandating mission-driven status for private nursing homes for the elderly may have been tabled for now, the broader discussion around the role of businesses in the “economy of life” sector continues to evolve. Calls for companies to embrace a mission-driven approach, focused on improving employee well-being, customer health, and environmental sustainability, highlight the growing recognition of the need for businesses to operate in a socially and environmentally responsible manner. This shift signals a larger cultural and economic movement towards prioritizing the preservation and enhancement of life, in all its forms, as a central guiding principle for businesses in the modern world.
