A New Suit for World Changers:
This is what it looks like to mix and match making a profit and being about a purpose
Superhero fans know… it’s not a bird… it’s not a plane… it is, in fact, Superman.
Try this one:
It’s not a nonprofit… It’s not a business. It is, in fact, both!
It’s a B Corporation, which is a hybrid approach to doing business that is beginning to get recognition.
Business owners ask, “What if there was another way to do good in the world and still be about the business of making a profit? What if my organization could change the world and still be profitable?”
Look behind the scenes into the world of a certified B Corp. It’s a world that tilts in the balance of both making profit and being about a purpose. It is possible to be both.
Compared to a normal business, the differences include:
· How the business is conducted.
· How the team is treated.
· How it lives in harmony with the environment.
Specifically, B-Corps are this, “They are a subset of for-profits that have made strict commitments to social causes. They voluntarily adopt rigorous standards of social and environmental performance, accountability and transparency. Their goal goes beyond profit, aiming, too, to treat their workers and the planet well.” https://frojeostern.com/advantages-and-disadvantages-of-b-corporation
What does the B represent? It’s not Business. It’s not Basic. It is, in fact, Beneficial. A B Corp means that it brings benefits because of the required standard for transparency, accountability, sustainability and performance. https://www.youtube.com/watch?v=wvXX5h6VaHw
Sounds perfect, right? And it may be for you and your company. But first, the process to become a certified B-Corp is a steep one requiring months of researching, writing and submitting paperwork. And it also includes a high price tag: annual certification fees cost $1,000 to $2,000 for companies with annual sales under $5 million, and more for bigger corporations. The reality is that only one and three companies succeed in receiving the certification.
With every innovative approach, there is always a learning curve and time for it to prove itself. The first B Corps were introduced and approved for business in 2007. That means, 15 years later, they are still making a splash and a name for themselves. But there are many questions yet to be addressed and answered.
Yet, the advantages seem to be worth the work. Funders, employees and suppliers for your business receive these messages when they see B Corp attached to your business:
· It brings commercial benefits.
· Top talent works for you because of the high bar for the treatment of staff.
· They know that you and your team behave ethically. They want to see this high standard from the companies that profit from their spending.
https://www.forbes.com/sites/katejacksonk/2020/02/18/why-be-a-b-corp/?sh=719d7d2a6ea1
As we are all well aware, COVID-19 changed so many things in our lives. One of those was the approach to how to be a responsible global citizen. B Corps were just finding its place in the world when everything changed in 2020. During that year, the things that were most important in life rose to the top. One of those highlights was that people embraced the idea of businesses using their profit for global good. They also supported businesses being a voice for good in global warming issues. And, also important, was supporting businesses that treated their employees well. Listened to them. Treated them like family. Supported their choices.
Imagine working for a company like that. Those companies would be in the position of attracting some of the most talented people who also want to change the world for good.
According to Andrew Davies, CEO of B Labs Australia, “the businesses that tend to become B-Corps are the ones that have a lot of passion. You don’t wake up one day and think I need to do a bit better so I’m going to become a B-Corp. Because becoming a certified B-Corp is enormously challenging and often takes years and huge amounts of resources to get there, so it’s not something that you do lightly”. https://medium.com/airtree-venture/b-corps-a-guide-for-startups-c5789413a4d0
Before you start the process, be sure you are aware of the challenges including:
· A mountain of paperwork, not just during the application and approval process, but also ongoing annual reports.
· The cost of high transparency includes random audits. If standards aren’t maintained, your business can lose its B Corp status.
· No corporate tax benefits.
· The high stakes and consequences. When making company decisions, directors must always be mindful of the impact on shareholders, employees, suppliers, customers, and the community at large.
· Ongoing costs including legal and administrative costs.
Some big-name companies were ready for those challenges. Names you recognize like Hootsuite, Warby Parker; Patagonia, and AllBirds. Joining them are thousands of smaller organizations that all agree on one primary benefit: They believe that business has a responsibility to the community and the planet, as well as shareholders.
Does this sound like a place in the world where your business belongs? If so, what are the next steps for you?
1. Be aware of how long the process takes. It could involve six to 12 months of your time.
2. Make sure you have the resources and finances to follow through once the process is started.
3. Do your research and get your business ready for the process.
4. When you’re ready, you can start here for more tools and initiate the assessment process: https://www.bcorporation.net/en-us/certification/ On the B Lab site, you will see how they intend to make business a force for good.
Now it’s your turn. Describe what you are leading. What suit are you wearing?
I’m a Nonprofit… I’m a Business… I am, in fact, a B Corp.
Regardless of your answer, decide now to be a World Changer for good. That’s the right look for everyone.