Impact Policy Tracker Policy

France’s Entreprise à Mission



In May 2019, France adopted the PACTE Law (Law 2019-486) to support the growth and transformation of companies, as part of a broader effort to reduce constraints on businesses and foster job creation, particularly among SMEs. One of its most significant innovations was the creation of the entreprise à mission - a legal status for commercial companies that commit to a clearly defined social or environmental purpose in their articles of association. These companies must pursue specific impact objectives, overseen by a mission committee and verified by an independent third party, combining business performance with long-term social value. In June 2020, Danone became the first publicly listed company to adopt the entreprise à mission status.



Highlights

  • Expanding on Earlier Legal Frameworks: The PACTE Law builds on earlier efforts to recognise purpose-driven business models in France. In 2014, the Social and Solidarity Economy (ESS) law was amended to introduce the Entreprise Solidaire d’Utilité Sociale (ESUS) status, recognising organisations like cooperatives, mutual societies, associations, and foundations that prioritise social objectives over profit.

  • Flexibility in Legal Structure: In France, the entreprise à mission is a "quality" or status that a commercial company can adopt without altering its existing legal structure. To attain this status, a company must amend its articles of association to include a clearly defined "raison d'être" (reason for being) that integrates specific social and environmental objectives into its activities.

  • Formal Public Status: The entreprise à mission status makes a company’s social and environmental goals visible to the public. To gain this status, the company must declare its mission to the commercial court. This is then recorded in official public registers, such as the Kbis extract and the Sirene directory managed by INSEE (France’s national statistics agency). This transparency allows customers, partners, and public authorities to easily verify the company’s mission-driven commitments.

Government’s Role:
Market Regulator


Country:
France

Policy Type:
Specific Legal Forms for Impact-driven Businesses

Year: 2019

Responsible Institution:
French National Assembly

Additional information:
Social Enterprise Law Survey: Colombia

Specific Legal Forms for Impact-driven Businesses

What are Specific Legal Forms for Impact Businesses?

Since the introduction of the Benefit Corporation (BC) model in the United States in 2010, several countries, including Italy (2016), France (2019), and Spain (2022), have established specific legal statuses -such as società benefit and entreprise à mission- that allow companies to pursue both profit and public benefit simultaneously, clearly demonstrating their commitment to creating positive societal impact. Benefit Corporations differ from traditional business models as they are legally required to pursue a public benefit, not just increasing profits for shareholders. This means that directors and executives must consider the interests of all stakeholders, such as employees, suppliers, customers, the community, and the environment. Furthermore, Benefit Corporations must report their performance using third-party standards to assess their social and environmental impact.

Among the advantages of adopting such statuses are legal protection for directors who prioritise long-term social and environmental goals over short-term profits, enhanced employee retention, and increased customer loyalty. BC status also provides clarity for impact investors and signals a company’s commitment to its social and environmental purpose. In some countries, such as Colombia, the legal status is tied to tax incentives, offering tangible financial benefits. However, the necessity of creating a specific legal form depends on each country’s existing regulatory framework. In some cases, such as South Korea, governments have opted for certification systems rather than new corporate structures. 

For more information on specific legal forms for impact businesses, visit The Rise of Benefit Corporations (2024) and The International Handbook of Social Enterprise Law (2022).