SHAREHOLDER FOUNDATIONS
The first European Study
With support from:
In collaboration
with:
Chair in
Philanthropy The study, created by Prophil - in collaboration with Delsol Avocats and The ESSEC Chair in
Philanthropy with support from Mazars – is the first to examine the phenomenon of
shareholder foundations in the European landscape (notably within France, Denmark,
Switzerland and Germany), investigating how these entities fulfill their dual vocation of
economic stability and philanthropy. It furthermore examines what elements can inspire
the development of such foundations in France.
Who knew that Bosch or Bertelsmann (Germany), Rolex (Switzerland), Ikea (Sweden), Carlsberg
(Denmark), or Pierre Fabre (France) belonged to… foundations? There are more than 1,300 cases in
Denmark – with 500 in Germany and 1,000 in Norway - where the founders made the fateful
decision to transmit all or part of his capital and voting rights to a foundation.
There are two major motivations in choosing this mode of corporate governance. The first is asset
protection: through the irrevocable and inalienable donation of shares, industrial foundations
protect the capital of the companies that they own. The foundation is created with a long-term
purpose that not only ensures stable ownership, but also protects against hostile takeovers. The
second motivation is philanthropic in nature: dividends issued to the foundation are used for
social causes, and in this manner, the profit of the company directly serves the general interest
More than a tool for inheritance purposes, the industrial foundation form represents a new and
tangible expression of a two-fold mission: a spirit of entrepreneurship combined with service to
the public good. Within the countries surveyed, this “philanthro-capitalist” mission is more or less
an accepted practice.
In the countries where they exist, shareholder foundations are observed as flourishing vis-à-vis
other forms. In Denmark, for example, 20% of the largest companies
belong to foundations, representing 10% of the national wealth and
one-fifth of private employment, with donations accounting for 0.5% of
GDP. In some respects, the performance of foundation owned firms
are observed to be superior compared to the classic dispersed
ownership firm.
Despite these dual virtues, the shareholder foundation form is largely
unknown, especially in France. The Pierre Fabre Laboratories and the
press group La Montagne are the exception, but at a time when
700,000 family enterprises are to be passed down within the next few years – combined with the diminishing role of the welfare state – the industrial foundation model
offers an intriguing alternative that requires exploration.
This first European study aims to share the features of this innovative model with public and
private leaders, stakeholders involved in business transmission, researchers and students. It seeks
to articulate how the model creates inseparable links between investment and giving,
responsibility and altruism, capitalism and philanthropy.
To learn more on shareholder foundations : http://www.fondations-actionnaires.eu
To buy the study online (hard copy format of 64 pages ) : http://www.editions.prophil.eu
Co-authors :
- Virginie Seghers, President, Prophil
- Xavier Delsol, Founding partner, Delsol Avocats
- Arthur Gautier, Executive Director et Joel Bothello, Reserch Fellow, ESSEC Chair in Philanthropy
- François Le Brun, Entremedia
A study developed by:
Prophil _ http://www.prophil.eu
Prophil is a French strategic consulting firm, specialised in new philanthropic and economic
models. Founded in 2013 by Virginie Seghers and Geneviève Ferone Creuzet, Prophil leads
companies and entrepreneurs, in France and abroad, in the design and management of socialinnovation projects – combining philanthropy with impact investment. These novel models
harness the synergies between economic efficiency and positive social impact.
In collaboration with:
Delsol Avocats - http://www.delsolavocats.com
Founded more than 40 years ago, DELSOL Avocats brings together the expertise of 23 partners in
a variety of domains related to business law (tax, social, public, real-estate, health, planning law,
etc.) and nearly 100 lawyers and jurists, orienting them towards two main areas: corporate law and
non-profit law.
The latter area, created and handled by Xavier Delsol, founder of the journal “Juris-associations”,
provides daily counsel and accompanies numerous French and foreign non-profit organizations
through litigation processes.
The
ESSEC
Chair
in
Philanthropy
http://chair-philanthropy.essec.edu
Established in 2011 at ESSEC Business School, the ESSEC Chair in Philanthropy is a research chair
that seeks to produce and diffuse knowledge about philanthropy, combining French, European
and international perspectives.
The Chair is supported by BNP Paribas Wealth Management, Fondation de France, Fondation
Daniel & Nina Carasso, the Edmond de Rothschild Foundations and Fondation Caritas France. It is
also the recipient of support from three individual co-founders and other individual donors.
With the support of:
Mazars - http://www.mazars.fr
Mazars is an international, integrated and independent organization, specializing in audit,
accountancy, tax, legal and advisory services. The Group draws on the expertise of over 15,000
professionals to assist major international groups, SMEs, private investors and public bodies in the
73 countries that are part of its integrated partnership.