Contribution to the report published by Institut Montaigne and Comité Médicis: “Responsible capitalism: a chance for Europe”

Given the urgent need for both environmental protection and economic recovery, Europe must seize this unprecedented opportunity to implement responsible capitalism, the fresh face of capitalism, and make it its new founding principle in line with its original philosophy: “social market economy”.

This report proposes an orderly set of measures designed to ensure growth and independence for European businesses and nations. It defines clear priorities: freeing up long-term financing for responsible companies, regaining control over accounting, financial and extra-financial information, and creating a common legal framework.

“Globalisation is not going to stop, but it will have to be governed in such a way that, drawing on the exchanges it allows, the independence and cohesion of European nations are ensured. This will be one of the responsibilities of companies. The question of responsible capitalism must therefore be at the heart of a re-foundation of the European Union. The time ahead will be that of a New Deal between each European nation and its companies, with the idea of responsibility at its core,” explain the two chairmen of the working group in charge of this report, Jean-Dominique Senard and Yves Perrier.

Responsible capitalism: an alternative model that is sustainable and equal to the challenges of our time

According to the report, responsible capitalism is not only the moral accompaniment of financial capitalism, but the suggestion of a model that is up to the challenges of our time. It is based on three cardinal points:

• A new purpose: responsible capitalism values companies on the basis of their social function and what it offers to all its stakeholders (employees, customers, communities, shareholders).
• The challenge of combining economic efficiency and sustainability, responding to the two major challenges of global warming and social cohesion.
• The alignment of shareholder interests with the company’s raison d’être and the systematic use of ESG criteria reflecting European values.

Financial institutions, mechanisms and instruments are vital to such a project, which is why the report pays particular attention to the needs of European companies.

Three priorities have been identified to create a European movement:

1. Foster long-term investment in Europe, where short-term capitalism prevails today
2. Review accounting, financial and non-financial information, to bring it into line with European values
3. Create a common legal framework to support responsible European companies

>> Click here to read this report in full (in French), and here to view the summary of the 17 recommendations.

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