The company in the era of the common good

The company must place all its values at the heart of its economic model. It must also apply all its force to ensuring responsible and sustainable development.

A few days ago, Nicole Notat, and Jean-Dominique Senart officially handed their report entitled “The company: a matter of collective interest” to the French government. This report makes a series of proposals designed to update France’s Civil Code in a symbolic but forceful manner. By recognizing that “the company must be managed in terms of its own interest while considering the social and environmental issues around its activity,” it reasserts private stakeholders’ legitimacy in taking up the major causes facing our society.

Whatever our role or position, we are all linked by a common destiny. All stakeholders are aware of these interdependencies. Such is the case of companies which are in the vanguard position to take action because they benefit from a unique alignment of the planets.

Pressure and the quest for meaning

First, citizens’ opinion and demands from companies have changed markedly: the majority now considers that companies have greater responsibility than States in building a better world. And, consumers exert well-meaning pressure on them to help them down the right path.

Increasingly, they select products in tune with their values. This is evident in mass consumer goods, but also in the materials segment where ecological arguments are increasingly important.

Consumers are no longer the only ones to place their values at the forefront of their beliefs: employees also want to see greater meaning. I see this every day when I talk with the younger generation who wish to join companies that show a real sense of conviction. The ideas they express align with several studies. For example, according to a global survey conducted by KPMG, three quarters of students believe that working for a highly engaged organization is more important than the salary.

We are at the dawn of a new era. Companies are becoming one of the centers of gravity for the common good. To be credible, this new status requires radical change.

Reduce the company’s environmental impact

In the era of the common good, a company must first place its values at the heart of its economic model. For Saint-Gobain, this means, for example, combining increased performance with the reduced impact of its products, which see their ecological footprint assessed throughout their entire life-cycle. For example, we have demonstrated that the energy-efficiency benefits of our insulation solutions very rapidly offset – just a few months after their installation – the carbon emissions required for their manufacture.

A company in the era of the common good must also agree to use its influence in the service of causes greater than itself. Major groups must be determined militants for responsible and sustainable development, aware that their size and global reach provide a rare platform for defending their values.

A company in the era of the common good must key into the collective by placing complete trust in its employees.

Let’s take the example of the construction industry again, as it is one I know intimately. It is currently responsible for about 40 percent of the world’s CO2 emissions. The engagement of all stakeholders is therefore the key to any radical reduction. Our responsibility as a major group is, of course, to set an example. It is also to inform, raise awareness, and to ensure that the entire value chain falls into line at our side.

To achieve this, since COP 21 in Paris, we have been participating in major international climate events, in particular within the Global alliance for building and construction. This alliance aims to work more closely with States, local communities, building and construction companies and the relevant associations by adopting a common roadmap to facilitate the transition towards low greenhouse gas-emitting and energy-efficient buildings.

Finally, a company in the era of the common good must key into the collective by placing complete trust in its employees. At Saint-Gobain, this trust is in particular reflected in employee share ownership. Each year, a growing number of employees around the world become shareholders in the company. They contribute massively to implementing the Group’s strategy alongside other stakeholders, namely our customers, suppliers, start-ups, universities and even the non-profit sector.

There is no planet B

Reconciling the ecology, the common good and the company’s interests ultimately requires one single quality: the strength of our convictions. Working with behavioral change takes time and demands lasting investment. Like others, Saint-Gobain has for many years been carving out its own path in the knowledge that the way ahead would be long. The year 2025 is the endpoint for reducing our energy consumption by 15 percent, our CO2 emissions by 20 percent and even our industrial wastewater discharge by 80 percent – which is considerable – based on action plans introduced in 2010.

Citizens, companies and employees: we all share the same future. So, let’s stay on course. We have no other choice: there is no planet B. Even so overlapping interests cannot be allowed to muddy the water. Each to their own role. Similarly, the State must remain the lynchpin of general interest, as the principal challenge facing companies is first and foremost to define its role. It is by making sure that each stakeholder is in the right place that we will advance collectively while serving the common good.

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