A new and more sustainable company genre is arising in the ever-shifting landscape of modern business. Benefit Corporations, known as B-Corps, are the new category of companies committed to blending purpose with profit. These businesses operate differently - there's a sense of responsibility to the environment and society, and they do so by keeping their operations transparent and accountable. B-Crops are reshaping the narrative of commerce, showing that being socially responsible and financially successful are not mutually exclusive.
Defining Benefit Corporations
B-Corps balance profit and purpose. To maintain a B-Corps status, these companies are legally required to consider how their decisions impact society, the environment, and stakeholders. This triple-bottom-line approach (social, environmental, and economic) sets these companies apart. To attain a B-Corp status, a company voluntarily undergoes an intense third-party assessment to review its transparency, accountability, and ethical practices.
What is the Triple Bottom Line Approach?
The Triple Bottom Line approach is a holistic assessment of the company's success beyond just looking at numbers. Three factors are considered: people, planet, and profit.
People
The social impact of an organization includes the well-being of employees, customers, suppliers, and the larger community. Key elements include fair labor practices, workplace diversity, community engagement, and employee satisfaction.
Planet
This assesses an organization's environmental impact, evaluating a company's carbon emissions, resource sourcing and conservation, waste management, and initiatives to alleviate any potential environmental harm.
Profit
This refers to the financial profitability and performance of a company and incorporates revenue, expenses, net income, and return on investment.
The Triple Bottom Line approach balances these three key aspects and promotes the idea that financial profitability is truly not the only measure of success.
The B-Corp Certification Process
The certification process is a fifteen-step process. It includes extensive paperwork, assessments, documentation, and verifications. Then, once certified, recertification must happen every three years, which follows the same certification process. The recertification ensures that these B-Corps are still following the agreed upon guidelines, as well as any additional mandates that have been put into place.
Benefits of being a B-Corp
Being a B-Corp comes with several benefits:
Positive Reputation
Considering the well-being of employees, communities, and the planet, all while generating a profit to keep people employed, can elevate a company's reputation.
Networking
The B-Corps community provides networking and collaboration opportunities to unite like-minded people to share their resources and knowledge to broaden the impact in addressing global challenges.
Legal Protection
Companies must balance profit and purpose to maintain a B-Corps status. This commitment is built into their business structure and bylaws, thus protecting them from any shareholder lawsuits resulting from a decision to place social or environmental goals over financial profit.
Long-Term Goals
Companies that consider the planet and people over profit set themselves up to be adaptable as the world and its needs change over time.
Unique in the Market
Being a B-Corp sets a business apart from its peers in a competitive and saturated market and is a unique selling point to customers eager to do good in the world.
Inspiring B-Corps to Follow
The number of B-Corps is growing! Here are some inspiring companies to follow.
Ben & Jerry's
The iconic ice cream company is dedicated to social justice, environmental sustainability, and fair-trade practices. Ben & Jerry's advocates for social causes, climate action, and racial justice.
Allbirds
This company produces mainly footwear and some apparel. It has environmentally friendly products with materials like merino wool and eucalyptus. They aim to reduce their carbon footprint and maintain transparency in their supply chain
King Arthur Baking Company
This B-Corp, known for high-quality backing products, is employee-owned and committed to sustainable agriculture, ethical sourcing, and supporting local communities.
Warby Parker
This company provides affordable and sustainable eyewear while donating glasses to needy people and is a leading example in the "buy one, give one" model.
Solgaard
This B-Corp's mission is to leave the planet a better place than when they found it. And they are doing so by using ocean-bound plastics to create a whole ecosystem of travel and lifestyle gear.
These inspiring B-Corps are just a few of the growing number of businesses. A more extensive list can be found on the official B-Corps website.
Long Story Short...
B-Corps are the new breed of companies leading an exciting wave of change, positively and sustainably transforming the business world!
Written by Andrea Jeschke
