How Investment Companies With Purpose Bylaws Reframe Governance to Leverage Multiple Accountability Mechanisms for Systemic Impact

ABSTRACT Our research focuses on a French legal framework for corporate purpose that came into force with the 2019 Plan for Business Growth and Transformation law. The main differences with benefit corporations are that French law requires companies to be accountable by defining statutory environmental and social objectives, to take responsibility for achieving them through a mission committee, and to accept possible sanctions by an independent third‐party body. However, the operationality, implementation, and governance mechanisms surrounding corporate purpose remain puzzling. To resolve this issue, we collected data and conducted semi‐structured interviews with 20 investment companies. These companies play a central role in shaping corporate strategies through capital allocation and governance influence. Our findings enabled us to identify a governance model that aligns stakeholders around a purpose and leverages multiple accountability mechanisms for systemic impact.