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CEO of Danone Learns That Being Good is Not Good Enough

CEO of Danone Learns That Being Good is Not Good Enough The next big theme is about how Danone’s CEO has just learned that being good is not good enough. If you follow the saga of Danone, it has branded itself as the socially responsible consumer packaged goods company, or as they call it outside of the Western Hemisphere, fast-moving consumer goods company. That's not to say that Danone is more socially responsible than its other major competitors. No, it's just branded itself this way. It's taken this flag of social responsibility and draped it around itself and told everyone, “This is what we're going to do.” But Danone has not done very well. Its share price is trailing peers. It’s PE ratio is trailing peers, and activist shareholders have stepped up and said, “Hold on a second. You're not doing well. We want the CEO to go.” That's basically what happened—the CEO has been released. Here’s the question: Was the CEO let go because he pursued a socially responsible corporate agenda? Or because he pursued it in a suboptimal way? And what does that mean for the world? What does it mean for strategy? Danone’s peers are also pursuing a socially…

CEO of Danone Learns That Being Good is Not Good Enough The next big theme is about how Danone’s CEO has just learned that being good is not good enough. If you follow the saga of Danone, it has branded itself as the socially responsible consumer packaged goods company, or as they call it outside of the Western Hemisphere, fast-moving consumer goods company. That's not to say that Danone is more socially responsible than its other major competitors. No, it's just branded itself this way. It's taken this flag of social responsibility and draped it around itself and told everyone, “This is…

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