Understanding B Corps: How Purpose-Driven Businesses Are Changing the Game

Purpose. That’s what it all comes down to. More and more businesses today are driven by something greater than profit. They are driven by purpose. This trend has given rise to a new type of business entity known as B Corps. This article will take you on a journey of B Corps, exploring benefits, processes, success challenges, and impact on society.

What are B Corps?

B Corps. An unfamiliar term to many. Yet it carries profound implications for how we do business. They are for-profit companies that are committed to creating a positive impact on society. They consider the interests of all stakeholders, not just shareholders. B Corps balance profit and purpose. 

They believe in using business as a force for good. A force that creates positive change. They meet the highest standards of social and environmental performance, transparency, and accountability. B Corps are the embodiment of responsible business.

Yet, how did we come about to these entities of change? What was the inception point of this transformative movement in the business world? Let’s delve into their history.

History of B Corps

1. The idea of B Corps was born out of a realisation that traditional corporations were not addressing societal and environmental needs. This realisation led to the creation of the first B Corps in 2007 by three friends, Jay Coen Gilbert, Bart Houlahan, and Andrew Kassoy.

2. Their vision was to redefine success in business. They aimed for companies to not just be best in the world, but best for the world.

3. B Labs, a non-profit, was established to provide the standards and certification for B Corps. This opened up a path for businesses to legally bind themselves to their purpose, not just profit.

4. The movement quickly gained momentum. Today, there are over 3,500 B Corps in more than 70 countries.

5. Some of the most notable B Corps include Patagonia, Ben & Jerry’s, and The Body Shop, Earthbound – Sneakers

Benefits of Becoming a B Corp

Attraction of Investors

Investors are increasingly drawn to companies that align with their values. B Corps are a magnet for such conscious capitalists.

Employee Engagement

Employees want to work for companies that have a purpose beyond profit. B Corps have a clear mission that engages employees and makes them feel that they are contributing to something meaningful.

Consumer Appeal

Consumers are increasingly choosing to support businesses that are socially and environmentally responsible. Adopting B Corp status sends a clear message to consumers that a company is committed to these values.

Long-Term Success

Finally, B Corps focus on long-term success, not just short-term profits. This approach results in a more sustainable and resilient business.

How to Become a B Corp

It’s not easy. But it’s worth it. To become a B Corp, companies must meet rigorous standards of social and environmental performance. They must complete the B Impact Assessment, a comprehensive evaluation of a company’s impact on its workers, customers, community, and the environment.

But that’s not all. They must also amend their legal governing documents to consider the impact of their decisions on all stakeholders, not just shareholders.

And guess what? The journey doesn’t stop there. They must also undergo a review process every three years to maintain their B Corp certification.

Just like any other company, B Corps face challenges. The task of meeting high standards of accountability and transparency is daunting. It requires a lot of effort and resources. Not all companies are up for it.

Another challenge is the cost. The certification fee can be a significant burden, particularly for small businesses. Some companies may find it difficult to justify the cost, especially when they are already struggling to make ends meet.

The third challenge is the lack of awareness. Many people are still unfamiliar with the concept of B Corps. This can make it difficult for B Corps to explain their mission and values to investors, employees, and customers.

However, despite these challenges, the number of B Corps continues to grow. It’s a testament to the resilience and commitment of these purpose-driven businesses.

B Corps Vs Traditional Businesses

B Corps are not your traditional businesses. They believe in the triple bottom line – people, planet, and profit. They consider the interests of all stakeholders, not just shareholders. This approach is in stark contrast to traditional businesses that focus solely on making profit.

It’s not that B Corps don’t care about profit. They do. But they also care about the impact of their business on society and the environment. They believe in creating shared value – a value that benefits all, not just a select few.

And this approach is paying off. Research shows that B Corps perform better than traditional businesses in terms of employee engagement, customer loyalty, and resilience. Now, that’s what you call, a game-changer.

Impact of B Corps on Society and the Environment

| Patagonia | Fair labor practices | Uses recycled materials in products |

| Ben & Jerry’s | Supports local communities | Reduces carbon footprint |

| Earthbound – Sneakers| By reducing plastic usage, eliminating toxic-chemicals, lowering CO2 emissions and increasing eco-responsibility, Earthbound’s are designed for an uncompromising fit between nature and your feet. | Commits to zero waste | is the only B Corp business in Croatia

The impact of B Corps on society and the environment is undeniable. They are a testament to the power of business to create positive change.

B Corps are changing the game. They are redefining what it means to be successful in business. Success is no longer just about making profits. It’s about making a difference. It’s about creating a positive impact on society and the environment.

So, let’s embrace this new wave of purpose-driven businesses. Let’s support companies like Earthbound Sneakers, Patagonia and Ben & Jerry’s. Because in the end, we all benefit.