B Corps: Business for the Better

“Benefit corporations and Certified B Corporations are both leaders of a global movement to use business as a force for good.” – B Lab

In 2006 three friends left their careers in business and finance and became committed to positively impacting the world. They initially wanted to start a company to achieve this, but instead started a movement that would encourage other businesses around the world to use their business for a higher purpose (Just R). When I learned about B Corps in my Corporate Social Responsibility class taught by Professor Cathy Moran, I fell in love with them. I felt like there was hope for the world. Benefit Corporations bridge together the two things that I enjoy learning the most about, business and the environment. I hope that through this article I can be informative of why B Corps are great for the world and encourage people to support them!  

B Corps are for-profit companies with modified obligations to regular companies that enable them to commit to a mission-based life post-initial public offering. The main difference between a B corp and a regular corporation is that regular corporations have a focus on shareholder primacy aka they want to maximize financial returns to their shareholders. B corps focus on stakeholder governance which therefore enables them to focus on their societal and environmental goals. 

B Corporations are verified through B Lab which is a non-profit company that measures a company’s social and environmental performance based on the B Impact Assessment. This assessment focuses on five conditions: accountability, transparency, performance, availability, and cost. Companies must get at least 80 points to qualify as a B Corp and once they become a verified B corp, they must publish their assessment score on their websites, creating transparency and trust for their corporation.

Being a certified B Corp can be beneficial for businesses because they may attract and engage employees, earn press, earn trust, and gain a competitive advantage. Many people are inclined to invest in them because of their transparency and because of the positive impact that they are making on the world. 

Examples of B Corps

Ben and Jerry’s

Ben and Jerry’s has a societal mission to not only produce the best product, but also to eliminate injustices in local, national, and international communities. They support nonviolent initiatives that seek peace. 

Patagonia

Patagonia works to identify problems and act on them. Whether it be from lighting their stores, how they dye shirts or producing recyclable materials and products, they work to improve their business practices and share their findings. Overall they hope to use business to protect nature and not only do less harm, but more good. 

Allbirds

Allbirds is committed to creating the most sustainable yet comfortable and practical shoe by using the world’s best natural resources. 

What you can do! 

1. Invest in a B Corp!
2. Support B Corps by buying their products and services
3. Work for a B Corp
4. Become a B Corp?? 

I hope that I may have inspired some people to support or even become a B Corp, or at the very least taught you something new! 

Sources

“B Lab U.S. & Canada.” B Lab U.S. & Canada, usca.bcorporation.net/. Accessed 6 Aug. 2023.

Bell, Michael. “What Is a Certified B Corporation?: Harvard Business Services, Inc..” The HBS Blog, 9 June 2023, www.delawareinc.com/blog/what-is-a-certified-b-corporation/.

Daugherty, Greg. “B Corp: Definition, Advantages, Disadvantages, and Examples.” Investopedia, 7 June 2023, www.investopedia.com/b-corp-7488828.

justR. “10 Facts about B Corporations.” Just R, 3 May 2023, www.just-r.com/insights/10-facts-about-b-corporations/.