September 6, 2024
Why B Corp?
A few months ago we held a webinar with one of Profit Impact’s most recent graduates, Arif Hussein of Klyk. During this, we realised that it’d be incredibly useful to give a breakdown of some of the B Corp facts that business leaders need to know before taking the leap themselves.
If you’d like to watch the recording of the webinar, it can be found HERE, but let's go over what you need to know.
What is B Corp?
B Lab was founded in 2006 in the United States by three friends who shared a vision of a global economy that uses business as a force for good.
This economy is comprised of a new type of corporation, The B Corporation, which is purpose-driven and creates benefit for all stakeholders, not just shareholders.
As Certified B Corps and leaders of this emerging economy, they believe;
- That we must be the change we seek in the world.
- That all business ought to be conducted as if people and place mattered.
- That, through their products, practices and profits, businesses should aspire to do no harm and benefit all.
- To do so requires that we act with the understanding that we are each dependent upon another and thus responsible for each other and future generations.
There are now over 700 B Corps in the UK, across 56 industries with over 41,300 employees.
Companies include Waitrose, Boots, Ocado, Emma Bridgewater and Who Gives a Crap to name a few.
What are the qualifying criteria?
One thing that everyone asks is about the qualifying criteria. Well, contrary to popular belief, B Corp is actually open to every commercial business but…
- Your company must be a for-profit business - this is for commercial businesses.
- Your company must have been in business for at least 12 months for the full certification.
- While all for-profit companies of all shapes and sizes can certify as B Corps, the path to get there can vary greatly.
B Corp is a framework that we work through together to become part of the fabric of your business, with that it will:
- Align with your profit goals.
- Will give you a larger impact.
- Will feel very “right”.
Whether you are at the start of your B Corp journey or are halfway through or waiting for certification, we can be your help and guide and have the support you need.
The B Corp assessment is comprehensive and rigorous and requires us as business leaders to take a close look at how we run our business, and a poorly-managed company simply won’t pass.
Certification requires a minimum verified total score of 80 across all impact areas out of a possible 200.
The questions on your company’s B Impact Assessment are determined by company size, sector, and market which keeps the whole process relevant, real and relatable to your business.
It is not a one-off event, it is a progressive journey as is the global goal.
What are the impact areas?
As a comprehensive impact management tool, the B Impact Assessment is categorised into five sustainability pillars that represent the Governance of the business, and four key stakeholder groups including Workers, Community, Environment and Customers.
B Corp businesses can be summarised as having the following key attributes:
- Strong Impact Business Models from one or more of the five sustainability pillars (Governance, Employees, Community, Environment, Customers).
- A commitment to your community. Diversity within your teams and supply chains, supporting local people and business, screening of your suppliers and contributing to the success of charitable organisations
- Commitment to net-zero. With the government enacting new legislation to mandate net-zero targets by 2050, B Corp service businesses are typically quick to get on board and put the building blocks in place to achieve net-zero.
- Managed risk. A B Corp certified business would positively encourage anyone who has serious concerns about any aspect of work to come forward and voice those worries or concerns. Including a commitment to training employees in relation to whistleblowing.
- High employee satisfaction is the level of happiness or contentment an employee feels for his/her job and is grounded in whether the goals and objectives of the business align with them on a personal level. Whether that be through financial compensation and reward, to believing in the actions towards the likes of political movements or environmental ethics.
Conclusion
Becoming a B Corp has tremendous appeal and will deliver the right growth, greater recruitment and retention, investor appeal, access to specialist grants and cost savings.
However, we also recognise and believe that not all businesses need to explicitly certify as a B Corp to reap the benefits that the framework has to offer.
Get in touch today and we can guide you on your sustainable future and be the driving force that our planet and people need.
Soon, these features will become non-negotiables within most businesses because customers and society will start to weave out the businesses that do not reflect their impacts.
Let’s get you ahead of the curve.
