In March 2021, Emmanuel Faber was removed as Danone’s CEO and chairman. Some view this ousting as primarily led by an activist investor who acquired shares in the company in late 2020, just a few months after Faber oversaw a shareholder vote in favor of becoming a purpose-led business via the “Entreprise à Mission” French legal framework. Coverage of Faber’s fall has billed it as “a case study in the pitfalls of purpose,” a “fall from favor for a purpose-driven chief,” and a “battle for the soul of capitalism.”
Brian Stauffer
The Myth of the CEO Hero
To serve all stakeholders, companies need systems change, not just one committed leader. The ousting of Danone’s chief executive shows why.
May 13, 2021
· Long read
Summary.
The recent removal of Danone’s CEO and chairman, Emmanuel Faber, has been seen by many as a clash between activist investors and stakeholder capitalism. But the actual implications aren’t that simple. Danone’s circumstances offer a much more important lesson: In the quest to design a corporate ecosystem that reliably — and profitably — meets the needs of people and the planet, there can be no singular heroes. Addressing the interconnected emergencies facing our societies and planet will demand systems change, and no CEO can deliver this change on their own. CEOs and policy makers must engage deeply with the question of how to ensure business is an enduring force for good. The authors present four systems-change principles for businesses deciding how to navigate the growing call to focus on stakeholders, not just shareholders.