What is B Corp and Why The B Corp Movement Matters

Whether you are out shopping or browsing through the internet, you’ve probably stumbled across a little B with a circle around it. Have you ever wondered what this symbol stood for?

What is B Corp?

Well the “B” stands for B Corp, meaning the item you saw this on was produced or delivered by a certified B Corp! In order to attain this certification, businesses and organizations undergo a rigorous review process to ensure they've enacted socially and environmentally progressive measures and are acting in the interests of the greater good. Buying from a B Corp is the equivalent of putting cash in the hands of companies that are working to fight for climate action, racial justice or local economies. So, when you purchase a product or service from a certified B Corp it's a symbol that you are committed to supporting those that use their business as a force for good!  

This is where the B Corp certification comes in - to ensure for-profit companies are meeting the highest social and environmental standards and are committed to public transparency. Certified B Corporations are legally required to consider the impact of their decisions on their stakeholders. These thought leaders are driving a global movement of building trust and creating a wave of true environmental and social impacts by going through this certification process!

Why The B Corp Movement Matters

The B Corp movement is all about using business as a force for good. It's about using business to create positive social and environmental change, rather than just focusing on profit. Social enterprises are all working together to build a better world. They're all using their businesses to make positive impacts. Here are the 5 benefits of joining the B Corp movement:

1. A community of shared beliefs

With a community of over 5344 B Corps around the world, you're not embarking on this social and environmental impact journey alone. CEOs have the opportunity to engage in meaningful conversations with other like-minded individuals to strategize ways they can create a better future by integrating sustainable practices into their business model. Becoming a B Corp gives you access to a powerful network unlike any other. They host networking opportunities to help you connect with new clients, investors, suppliers, and potential collaborators. The opportunities this community can bring are limitless!

Take it from one of our Getting to 80 participants:

"I've always tried to do the right thing in my career, but it can sometimes feel like I'm swimming upstream. In this community, I'm with business leaders who feel the same way. I'm not alone." You won't be navigating this new industry alone. You have a whole team of thought-leaders to help you along the way.

2. Path to accountability

The B Corp certification is not only a rigorous certification, it's a detailed guide to continuous improvement. The B Corp certification is underpinned by the “B Impact Assessment”, a tool and questionnaire to measure your impact across 5 key areas:

• Community

• Customers

• Workers

• Environment

• Governance

We see the assessment as a list of best practices - a guidebook to follow on your quest to become a more impact-aligned company. Let's be real. You're not going to be spectacular in every single area from day one. The B Impact Assessment is a strengths-based assessment, allowing you to identify, and grow your key strengths (while also flagging areas where you might wish to consider in the future). The process enables you to be accountable for the practices you care about. And with re-certification occurring every three years, this accountability continues over time.

Take a look at these findings from the B Lab Research that showcases what B Corps had to say about their certification.

3. Attracting top talent

One of the greatest benefits of becoming a certified B Corp is being able to attract the right kind of people to your corporation. By broadcasting and verifying your stance on social issues and the intention to create community impact, you are likely to attract engaged, purposeful, and passionate employees. They are committed to doing better and seek to be a part of a community that subscribes to this movement of using your business as a force for good. The certification helps connect employees with responsible companies that have a mission they align with, ultimately creating an engaged work culture. In fact, the incoming workforce considers a company's social and environmental components during their job search and purpose-aligned employees experience an increase in their productivity level. (Check out this Harvard Business Review article for more details!) This goes to show that purpose pays and as a result, your retention rates soar!

4. Added credibility

Several studies have shown that global consumers are willing to pay more for brands that have demonstrated a commitment to sustainability. However, one thing to look out for is that consumers are no longer accepting a brand's social and environmental claims at face value. Consumers are perceptible to greenwashing and can generate skepticism towards all products that promote green credentials. 

Given the rigorous certification process, the standards that B Corps need to adhere to in order to maintain their status are of the gold standard. Certification shows your consumers, investors, and community that you are actively making a positive impact. The certification is a badge of honor you can wear to prove your corporate social responsibility efforts and helps build trust with stakeholders. They cut through the noise and provide third-party verification of your impact claims.

5. Future-Proofing

Conscious consumerism is on the rise! As more consumers become aware of the harsh realities of ‘business as usual' (for workers, communities, and the environment they rely on), they are increasingly holding companies accountable for their actions. (Give a look to this Zeno 2020 Strength of Purpose study.) In fact, 94% of global consumers state it is important for the companies they engage with have a strong sense of purpose. Consumers in the US were projected to spend $150 billion on sustainable products by 2021. Building on this movement, more and more businesses are piquing interest in getting B Corp certified as they search for ways they can do better.

Conscious consumerism and conscious capitalism demand a higher standard of social and environmental performance in an uncertain world. We need to build a new, inclusive economy that creates value for all and reduces the negative impact businesses have traditionally been associated with. The process of moving through the B Impact Assessment prepares entrepreneurs to vision how their company can leave a positive mark on the world. B Corp certified companies are better prepared to mitigate the risks their companies may encounter due to the climate crisis, supply chain disruptions, and social justice issues.

B Corp Certification Support

To put it in simple terms, becoming B Corp certified helps your company transition from a profit-driven to a purpose-driven business. Why not take the next step in enhancing your credibility and unlocking your company’s true potential! It’s rewarding to be recognized for all the contributions you’ve made to improve the lives of those around you and the B Corp certification does exactly that.

If you’re ready to receive B Crop certification support and unleash impact in your company, join us for our Getting to 80 program! For more details refer here.