In recent years, the global business landscape has shifted toward socially and environmentally responsible practices, led by “Benefit-For-All” Corporations or B Corps. These for-profit companies meet high standards of performance, accountability and transparency.
The movement began in 2006 with the founding of B Lab, a nonprofit institution that developed the “B Impact Assessment” to evaluate an organization’s social and environmental impact. To become B Corp certified, companies must score at least 80 out of 200 points and adhere to standards across governance, employees, community, environment and customer relations.
Related: How to Make Sustainable Practices Make Sense for Your Business
B Corps must also amend their legal documents to require the board to balance profit and purpose. Since its inception, the B Corp movement has grown exponentially, with more than 8,900 certified businesses in more than 101 countries, spanning 162 industries from retail and manufacturing to finance and technology.
Recently, two well-known B Corp companies, Cotopaxi, which produces outdoor gear and apparel, and Intrepid Travel, a small-group travel company, collaborated on a trip to Ecuador to showcase how their shared missions of “gear for good” and “travel for good” can drive a new kind of brand success focused on purpose, responsible tourism and local impact. Sara King, general manager of purpose at Intrepid Travel, and Annie Agle, vice president of sustainability and impact at Cotopaxi, shared insights on what it means to be a B Corp and how this status has transformed each of their businesses and industry presence.
Why B Corps?
“Our founders were focused on a company that was going to produce sustainable outdoor gear that allowed people to travel and get outside in an experiential fashion, but wanted to ensure that the business was providing a sustainable means for alleviating global poverty,” Agle says. “And they believe that B Corp is the most meaningful, rigid, holistic certification that a business can go through that aims to prove that you are having a net positive impact on society.”
King seconds this, adding that as part of a global movement of people using business as a force for good, B Corps like Intrepid Travel guarantee their current (and future) customers a commitment to benefiting people and the planet.
“Furthermore, to stay a B Corp, you need to recertify every three years, so it is about continuously striving to improve your performance and impact numbers,” she adds.
Related: Why Arka Packaging is the Go-to Brand for Demand Based Replenishment
This is especially important as greenwashing strategies become increasingly sophisticated. Many marketplace markers and titles claim sustainability but are often purely for vanity. However, B Corp certification stands out as one of the most rigorous and respected, offering customers across industries a trustworthy standard. “Even just the impact assessment alone provides an excellent road map for holistic improvement in conscious capitalism,” says Agle.
The B Corp assessment
While the initial workup is extensive, King outlines the five areas that the B Corp assessment addresses—governance, customer, workers, community and environment. “Everything is rigorously audited: I’m talking from our CEO to office supplies and where our energy comes from,” she stresses.
- Governance is about the board of directors, policies and procedures, and the way business is executed.
- Workers cover the wages paid, working conditions, promotion opportunities and the diversity of staff.
- Community tackles supply chain—from raw materials to partner companies along the production process.
- Customers are people who use the products and services.
- Environment measures the footprint of the entire business—the materials used, transportation, energy the business consumes, how far supplies need to travel, how much waste is produced and what is done with it.
Benefits of B Corps
Companies that achieve B Corp certification reap numerous benefits. “It forces you to internalize processes that consider society and the planet at every turn in a formal manner,” explains Agle. This corporate discipline enhances brand reputation and builds trust with consumers who increasingly value ethical practices.
Recent surveys, including those conducted by IBM with NRF and the Baker Retailing Center at the University of Pennsylvania, found between half to two-thirds of consumers said they will pay more for sustainable products, highlighting the importance of certification in attracting and, more importantly, retaining customers.
B Corps also often experience improved employee engagement and retention. By prioritizing social and environmental goals, they create a positive work environment that attracts mission-driven citizen employees who are looking for meaningful employment.
Related: Lia Neumann: Paving a Way for Environmental Change
Additionally, B Corps gain access to a supportive community of like-minded businesses. This network provides opportunities for leadership, collaboration, learning, growth and collective problem-solving. “And I think that gets you into a peer class with other brands who are taking topics like sustainability, inclusion and conscientious business seriously,” says Agle. For example, Intrepid leads the B Corp Climate Collective and is the lead for the Asia Pacific B-Tourism Group.
Finally, B Corps can achieve long-term financial performance and sustainability. Companies that integrate social and environmental goals into their business models are better equipped to navigate market fluctuations and regulatory changes. Agle says that they are, in turn, more attractive to potential investors who use the certification to hold portfolio companies accountable, particularly if they’re in high-risk sectors like textiles and manufacturing.
The impact of B Corps on society
B Corps have a profound impact on society by promoting sustainable and ethical business practices and prioritizing social goals. For example, Intrepid launched a decarbonization toolkit, an open-source carbon measurement guide and a carbon label guide to proactively track their impact on climate change. “We also provide active staff time and financial support to community campaigns, such as Australia’s ‘YES23’ for Indigenous parliamentary representation, Climate Change Makers’ ‘Hour of Action’ in New York and Canada’s Climate Justice March to end burning fossil fuels,” adds King.
Socially, B Corps foster inclusive and equitable workplaces, supporting fair labor practices and community development. For example, Cotopaxi currently pays 94% of its employees a living wage, which is often higher than minimum wage. “This has become important to us and started showing up in a very prominent fashion in the last update to the impact assessment—and we felt strongly that this is a topic that we need to plant our flag around because we are in support of poverty alleviation,” says Agle.
Related: How Rachel Ceruti Is Curbing Environmental Waste By Upcycling Clothes
With increasing awareness and demand for responsible business, B Corps like Intrepid Travel and Cotopaxi look to address global challenges like climate change, inequality and social injustice.
As sustainability becomes a priority, the number of B Corps is steadily growing. Legislative changes may further support this model by recognizing and incentivizing socially responsible businesses. By demonstrating that profit and purpose can coexist, B Corps are driving positive change worldwide.
Photo courtesy of Peopleimages.com – Yuri A/Shutterstock
