Inclusion of young people in French wine cooperatives and wine merchants

Questions and/or research objectives: Youth inclusion in society is a growing concern, as young people face higher unemployment rates and lower wages compared to adults. This leads to significant societal impacts, as underemployed youth are more vulnerable to poverty and social exclusion (OECD, 2021). In the workforce, 33% of individuals under 35 experience discrimination, with women under 35 feeling particularly underrepresented in decision-making (OECD, 2021). However, the inclusion of young people in corporate governance is not only a matter of diversity but a strategic necessity to improve transparency, environmental performance, and quality practices. Policy incentives, such as the "Plan France Relance" in 2020, aim to address these issues by supporting youth and people with disabilities in the workforce, balancing ecology, competitiveness, and social cohesion. Agriculture is at the heart of this issue, and consequently, the transition of agricultural enterprises toward sustainability is central to the challenge. This study focuses on the agricultural sector, specifically the wine industry, where generational renewal is a major concern. In 2020, 51% of wine-growing farms were managed by individuals aged 55 or older, raising issues for the future of the industry (Agreste, 2022). This is particularly relevant for wine cooperatives, which represent 60% of winegrowers and 40% of French production. Their governance is crucial for ensuring economic and financial performance (Saïsset, 2014). We aim to address the following questions: How does the inclusion of young people in the governing bodies of wine-growing companies – cooperatives and capitalistic businesses -, under the principles of quality and sustainability, influence their performance and sustainability? Specifically, what is the relationship between youth inclusion and financial, quality, and sustainable performance in these companies? Does the inclusion of youth vary by type of business—cooperatives versus capital-based enterprises (merchants)? Conceptual approach From a theoretical perspective, youth inclusion in corporate governance has been studied in economics and management literature, focusing on the effect of diversity in decision-making structures on organizational performance (Ferrary & Déo, 2023; Galia & Zenou, 2014). In particular, youth inclusion is seen as crucial for the sustainability of organizations due to the creativity and competitive advantage young executives bring. Young board members are also instrumental in influencing environmental decisions within companies. Previous studies, such as Wardhani et al. (2022), have shown that youth positively impact environmental performance. Similarly, research in the financial sector indicates that young board members are more likely to prioritize environmental protection (Cosma et al., 2021). Only a few studies and empirical evidence show that the inclusion of young members in cooperative governance may have positive effects on the performance, especially with regard to the adoption of environmentally sustainable practices (Diakité et al., 2021). So, we observe that, although youth representation has been explored in many sectors, it has not been thoroughly examined in the context of wine-growing enterprises. This gap in the literature warrants further investigation to understand how the inclusion of young people in governance can influence the performance and sustainability of these companies. Method for exploring the issue The study uses both quantitative and qualitative methods. A database was created that includes wine cooperatives and wine merchants, focusing on the quality labels (e.g., IPG, AOP) and certifications related to social, economic, and environmental sustainability (e.g., CSR, ISO 14001, HVE, Organic) displayed on company websites. Financial statements, corporate governance data, and information about youth inclusion and business performance were also incorporated using external databases. The sample consists of 1,066 companies. Econometric methods were employed to test the relationship between youth inclusion in governance bodies and sustainability efforts. The dependent variables considered were financial performance (EBITDA profitability), as well as environmental, social, and quality performance as signaled by the enterprises. The independent variables included age and the type of position held on the board. Control variables included company type, region, and size, while the interaction variable considered was gender and age. Results The analysis reveals a low level of youth inclusion across the 1,066 companies in the sample. Cooperative companies show a higher level of youth inclusion compared to capital-based companies. The companies in the study are committed to quality and environmental sustainability, as evidenced by various certifications and labels. Trading companies are more engaged with quality indicators, while cooperatives focus more on sustainability. The econometric analysis indicates that the presence of young people in governance bodies does not significantly affect performance indicators—financial, quality, or sustainability—except in capital-based companies. In these companies, the presence of youth is associated with better quality performance, particularly in AOP/AOC-certified products. Additionally, when young people occupy support or management functions, their presence is linked to improved sustainability performance in both types of companies. These results pave the way for future and more detailed researches, namely on wine cooperatives where the involvement of young members in governance bodies decrease, as other agricultural cooperatives.