As we navigate the complexities of this ever-changing world the conversation around business success is evolving. Profitability alone no longer defines business success; there is a growing movement which emphasises the equal importance of social and environmental responsibility as markers of achievement for businesses.
At the forefront of this movement are B-Corporations. B-Corps are redefining what it means to be successful in the modern business industry. As we celebrate B-Corp Month, it's an opportune time to explore the significance of these companies and the impact they're making on our society and planet.
In this blog we will explore:
- What are B-Corps
- The requirements needed to become one
- Why B-Corp month matters
- The business benefits of becoming a B-Corp
What are B-Corps?
B-Corps is short for “benefit corporations”. They represent a new wave of businesses that are committed to balancing their profits with purpose. They are businesses certified by the non-profit B-Lab, meaning they have passed a series of rigorous social and environmental tests.
So what are the requirements a business needs to meet to get the certification?
- They must showcase strong social and environmental performance by attaining an Impact Assessment score of 80 or higher and successfully passing our risk review. Multinational corporations are additionally required to meet foundational standards.
- Make a legal commitment by adjusting their corporate governance structure to ensure accountability to all stakeholders, not solely shareholders, and attain benefit corporation status if applicable within their jurisdiction.
- Demonstrate transparency by making performance information, evaluated against B-Lab’s standards, publicly accessible on their B-Corp profile on B-Lab’s website.
It is not an easy task to become a Certified B-Corp and businesses that can reach this level should be highly commended. B Corps span diverse industries and sizes, from small startups to multinational corporations, united by a common commitment to using business as a force for good.
What are the business benefits of becoming a B-Corp?
B-Corps are pioneers in sustainable business practices, leading the way in areas such as ethical sourcing, renewable energy, fair labour practices, and community engagement. However, alongside the environmental and social benefits of B-Corps, there are also substantial business benefits to receiving this certification.
According to the official B-Corp Website, recent research has found that B-Corps outperform their peers on several different levels due to these factors;
An increase in customer loyalty and expanded market opportunities
It provides a competitive advantage as the certification distinguishes the company as one committed to both social and environmental responsibility, appealing to an increasingly conscious consumer base.
Committed and motivated employees
Employees are often drawn to companies which align with their values and are committed to making a positive impact, this ensures that all the employees are committed and motivated. This will inevitably improve the business's productivity and efficiency which contributes dramatically to long-term profitability.
An increase in investors
Businesses with strong social and environmental values attract interest from a growing number of investors who are interested in sustainability and making a positive impact. The transparency that comes with the B Corp Certification increases a company's credibility and as such investors with ethical values in mind will be attracted to this.
Overall, being a B-Corp not only aligns with the evolving expectations of consumers and employees but also contributes to long-term profitability and resilience in an increasingly socially and environmentally conscious marketplace.
Why does B-Corp month matter?
Every year in March the B-Corp community joins together to show the world the positive impact their work is having on the world. However, is it more than just a celebration, it's a call to action. It's a reminder that businesses have the power to drive positive change and address pressing global challenges.
By highlighting the achievements of B-Corps and raising awareness about their mission, B-Corp Month encourages consumers, investors, and other businesses to support companies that prioritize purpose alongside profit. It's an opportunity for reflection and inspiration, inspiring individuals and organizations alike to align their values with their actions.
At SkootEco we prioritied getting the B-Corp Certification, even winning the “Best For The World” award for exceptional positive impact in 2022, ranking us in the Top 5% for all B-Corps in transparency and governance.
We recognise the importance of prioritizing ethical social and environmental practices and it is at the core of the business. During B-Corp month we will be celebrating the work of our fellow B-Corp Community focusing on our common goal:
“Building an inclusive, equitable, and regenerative economic system.”
