Certifying businesses that take on social and environmental problems
More and more entrepreneurs are going into business and growing their enterprises with a broader focus than building shareholder returns. Instead, these purpose-driven leaders see the potential for a much broader impact, one that includes society and the environment.
“Increasingly there are businesses that want to create value for all their stakeholders, not just their shareholders. These companies are competing not just to be best in the world, but best for the world.” B Lab Founder Andrew Kassoy
Certified B Corporations are leading a global movement to redefine success in business. Companies that achieve B Corp certification have agreed to voluntarily meet higher standards of transparency, accountability, and performance. They know that they can stand out in a cluttered marketplace through their higher purpose and a shared vision that businesses can create benefits for all stakeholders; not just shareholders.
What’s driving business owners to invest in the certification process? There is growing acceptance of brands doing well by doing good. Across the globe, 75% of consumers believe it is acceptable for brands to support causes and make money at the same time (up 33% since 2008). A full 80% of consumers feel it is important for companies to share their efforts to address societal issues. Edelman goodpurpose Study“These companies are competing not just to be best in the world, but best for the world.” B Lab… Click To Tweet
How do companies earn B Corp certification
Starting with an online impact assessment, business owners can complete a questionnaire that summarizes their business as it relates to four categories: Workers, Governance, Community and the Environment.
Just the exercise of tackling 174 questions in the four categories above is time well spent by any organization. As a business grows, questions like these below can shape the future of the company:
- What percent of non-executive, full-time employees participated in the company’s bonus plan in the last fiscal year?
- What practices apply when evaluating the social and environmental performance of your suppliers?
- Has your company gone through an environmental review or audit in the last 12 months?
- Are there key performance indicators or metrics that your company tracks on at least an annual basis to determine if you are meeting or social or environmental objectives?
Some organizations may not be able to achieve the minimum 80 points required to earn the certification, but the impact assessment tool is an ideal way to focus resources toward next steps. Learn more about my journey toward certification.
A growing NETWORK with many benefits
Companies aiming for a passing grade have done the math for the business case and understand the ABCs of joining this fast-growing group of certified companies:
A – Affiliation: A B Corporation will join a community of like-minded businesses that want to change the status quo. Fellow businesses in related or complementary industries have a network of entrepreneurs they can rely on to help manage business challenges.
B – Baseline: Rather than re-inventing the framework, the impact assessment can shape a company’s commitment towards: Workers, Governance, Community and the Environment. There are ample opportunities to learn form other B Corporations on how they raised the bar in each category.
C – Credibility: Since the assessments are conducted by a third party, this helps ensure there’s no greenwashing or trying to look good with slick marketing. It is unbiased and based on a consistent approach that helps owners measure what matters and ultimately, build a better business.
About 150 businesses in Canada are currently certified, along with over 1,600 companies in 48 countries. BC-based Persephone, Salt Spring Coffee, Lunapads and Fairware are in good company with global brands like Patagonia, Ben & Jerry’s and Method. This movement is growing fast and Certified BCorps achieve brand lift from their affiliation, which also helps to attract employees, earn publicity an gain competitive advantages in their sector.
Ready to measure what matters and understand your company’s impact in the world? We work with conscious brands that are ready to “B the change”. Let’s talk about how to build and share your stories.