The event was part of an ongoing transatlantic series designed to promote collaboration and explore innovative governance models. The discussion highlighted the ALI’s and ELI’s work in the field as well as how enterprise foundations – business owned by foundations – can align corporate strategy with societal and environmental goals while ensuring long-term sustainability.
Pascal Pichonnaz (ELI President; Professor, University of Fribourg) chaired the event, introducing the topic as a critical component of ELI’s mission to foster sustainable governance. He emphasised that enterprise foundations offer a unique approach to reconciling business success with broader societal responsibilities. By separating ownership from short-term profit incentives, these structures allow companies to focus on long-term, sustainable objectives.
Steen Thomsen (Project Co-Reporter; Professor, Copenhagen Business School), and Anne Sanders (Project Co-Reporter; Chair for Civil Law, Company Law, the Law of Family Businesses and Comparative Judicial Studies, University of Bielefeld) jointly explored the governance and legal frameworks of enterprise foundations. Thomsen discussed how enterprise foundations which own companies instead of merely funding them, drive sustainability by prioritising long-term goals over short-term profits. He demonstrated their effectiveness with successful European examples, such as Carlsberg, which supports sustainable management while delivering economic and social benefits. Sanders complemented this by examining the legal structures underpinning enterprise foundations, emphasising the need to balance flexibility with mandatory governance rules. She highlighted how robust accountability mechanisms help mitigate risks and ensure the foundations fulfill their long-term goals. Sanders also addressed the diversity of legal traditions across Europe and the challenges of creating adaptable yet effective regulations for these entities.
Edward Rock (Reporter on ALI’s ongoing project – Restatement of the Law, Corporate Governance; Director of NYU Law School's Institute for Corporate Governance & Finance) provided a US perspective. He noted the relative scarcity of enterprise foundations in the United States and highlighted the legal and cultural barriers to their adoption. Rock contrasted this with the traditional corporate governance model in the US, emphasising that enterprise foundations offer an intriguing alternative for embedding purpose-driven principles into business operations.
Anne Birgitte Gammeljord (First ELI Vice-President, Chair of Augustinus foundation), shared practical insights from her experience managing a Danish enterprise foundation. She highlighted how these structures promote stability by enabling long-term ownership and responsible investment in businesses. Gammeljord explained how foundations like Augustinus balance the needs of multiple stakeholders while contributing significantly to society through philanthropic initiatives.
Greg Curtis (Executive Director of Holdfast Collective, Patagonia's non-profit shareholder, Patagonia Foundation) presented Patagonia’s innovative ownership model. He described how Patagonia transitioned to a structure where 100% of its voting stock is held by a purpose trust, and 98% of its economic interest is owned by a non-profit dedicated to funding environmental initiatives. Curtis explained how this model ensures that Patagonia remains committed to its mission of environmental stewardship while reinvesting profits to create meaningful global impact.
The interventions were followed by further reflections from Reporters Thomsen and Sanders and lively discussions.
More information about the ELI Project is available here.
The recording is available below.
