Steward ownership and Société à Mission

A comparison

A Société à Mission, or "company with a mission" in English, is a specific legal form of business organization in France. The primary objective of a Société à Mission is to balance profit-making with pursuing a predefined social, environmental, or societal mission.

A Société à Mission is required to have a clear and specific mission statement, outlining its social or environmental goals. This mission statement is legally binding and must be included in the company's bylaws. It goes beyond maximizing shareholder value and takes into account broader social and environmental concerns. An independent third party, known as a "commissaire à la Mission," is appointed to ensure the company's compliance with its mission and report on its progress. A Société à Mission can be structured as a variety of legal entities, including limited liability companies (SARL), joint-stock companies (SA), or cooperatives (SCOP). 

Can a Société à Mission be classified as a steward-owned company? In contrast to steward ownership, a Société à Mission enshrines its mission in its bylaws whereas a steward-owned company enshrines the purpose-orientation on the ownership level. A Société à Mission does not include a restructuring of the corporate ownership structure; shareholders still can sell the company and control over it, realize the company value and receive dividends. If a Société à Mission wishes to alter its status and no longer operate under the Société à Mission framework, it can do so by amending its articles of association and adopting the legal structure of a regular limited company – a clear distinction to steward ownership. Both principles of steward ownership – (1) the assets are locked and (2) the voting shares remain within the company – are therefore violated.