Bridging Generations: Inclusion of young people in sustainable and quality wine enterprises. Differences between wine merchants and wine cooperatives

Youth inclusion 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 is more vulnerable to poverty and social exclusion (OECD, 2020). Inclusion of young people in corporate governance is strategic to improve transparency and environmental performance. Agricultural enterprises, where generational renewal is crucial, are at the heart of this issue, and their transition toward sustainability is central to the challenge. This study focuses on the wine industry and namely wine cooperatives, representing 40% of French production. Their governance is crucial for ensuring financial performance (Saïsset, 2020). Our research questions are: How does the inclusion of young people in the governing bodies of wine-growing companies - cooperatives and capitalistic businesses - influence their performance and sustainability? What is the relationship between youth inclusion and financial, quality, and sustainable performance? Does the inclusion of youth vary by type of business, cooperatives versus merchants? From a theoretical perspective, youth inclusion in corporate governance focused on the effect of diversity in decision-making structures on organizational performance (Ferrary & Déo, 2023). Youth inclusion is crucial for the sustainability: young executives bring creativity and competitive advantage. Young directors are also instrumental in influencing environmental decisions. Previous studies have shown that youth positively impact environmental performance. (Cosma et al., 2021; Wardhani et al., 2022). Apart from the approach of Miner & Novkovic (2020), only a few studies have demonstrated that the inclusion of young members in cooperative governance may have positive effects on performance, especially environmentally sustainable practices (Diakité et al., 2021). Youth representation has not been thoroughly examined in wine-growing enterprises. The study uses quantitative and qualitative methods. A database was created including wine cooperatives and wine merchants, focusing on the quality labels (e.g., PGI, PDO) and certifications related to social, economic, and environmental sustainability (e.g., CSR, ISO 14001, Organic) displayed on company websites. Financial statements, corporate governance data, and information about youth inclusion were incorporated. The sample consists of 1,066 companies. Econometric methods were employed to test the relationship between youth inclusion in governance and sustainability. The dependent variables were financial, environmental, social, and quality performance. The independent variables included age and the type of position on the board. Control variables included company type and size, while the interaction variable considered was gender and age. We observe a low level of youth inclusion. Cooperatives have a higher level compared to capital-based companies. The studied companies are committed to quality and environmental sustainability (various certifications and labels). Trading companies are more engaged with quality indicators, cooperatives focusing on sustainability. The econometric analysis shows that youth inclusion in governance has limited overall effects. It is negatively associated with some quality indicators (notably PGIs) but positively linked to environmental and social sustainability. Moreover, its impact on financial performance appears only in companies with average and above-average results, suggesting that young directors contribute more effectively where firms already perform well.