François Caron and the Principal-Agent-Problem: How a man’s identity shaped the Compagnie des Indes

François Caron and the Principal-Agent-Problem: How a man’s identity shaped the Compagnie des Indes

History

1600-1673

Joe Bates

2024

Guido Van Meersbergen (Supervisor)

This article seeks to understand the importance of identity in impacting the French East India Company by taking as its subject François Caron (1600-1673), a foreigner and one of the first directors of this fledgling company. Caron, as a protestant and former employee of the Dutch East India Company, provides a unique example as to how both religious and national identity permeated 17th century commerce and affected decisions both in Europe and Asia. In the case of the French East India Company, Caron provided some of the impetus within the company to hire a range of foreigners which contributed to a multi-confessional organisation. Identity, however, remained a key source of difference and in Caron’s case would lead to suspicions and accusations of impropriety from his French colleagues. This ties into the historiographical question of the principal-agent-problem and whether Caron acted in the company’s best interests as his loyalty came under scrutiny. Caron came to be heavily relied upon by both Jean-Baptiste Colbert and Louis XIV who invested Caron with an unquestionable authority that would have significant consequences for Caron’s climactic decision to establish a French presence on Ceylon in 1672.

Key Words: Francois Caron, French East India Company, Compagnie des Indes, Religious identity in the 17th century, French presence in India, Principal-Agent-Problem