Two drivers–mission and profit–set these companies apart.
The philosophy behind B Corps is that the company can do well by doing good. It’s an ideal shared by over 8,000 B-Corp certified business around the globe, including over two dozen in Michigan. But what’s a B Corp and why would a company want to be one? Let’s take a look.
What it means to be a B-Corp
A B Corp company is required to consider the social and environmental impact of their business. They care about people, profit and the planet in equal measure, according to B Lab Global, the non-profit organization that issues certification.
How a company gets certification
Expect the certification process to take about 12 months, reports the U.S. Chamber of Commerce. And, before applying for certification a business must be in operation for at least one year.
The Chamber outlines four steps to get B Corp certification:
- Implement a B Corp legal framework. The framework will vary depending on company location, size and status.
- Begin the online B Impact Assessment. This survey looks at the effects of a business’s practice on various stakeholders.
- Submit the completed assessment with a $150 fee. The assessment will be reviewed by a B Lab member for verification.
- When verified, sign a B Corp agreement and submit your B Impact Report to be listed in the B Corp Directory.
The B Impact Assessment is a comprehensive survey that delves into five categories of business practices: customers, community, workers, governance and environment.
The Value of becoming a B Corp
Many consumers are interested not just in buying things but buying from a company that shares their values. For these folks, B Corp status demonstrates shared values and a commitment to customers, employees and the environment.
“Younger generations pay attention to the B Corp label,” says Ecolytics, “and believe that a product must meet high standards to earn B Corp’s endorsement.”
Another tangible value of B Corp status is its ability to help attract talent. Many people want to work for a company that reflects their individual values. A B Corp, with its transparency and publicly stated mission, helps make an employer more attractive. Plus, 26% of B Corps give employees an opportunity to own a piece of their company, helping contribute to their financial well-being.
A B Corp may also increase investment value. People First reports, “Investment professionals pay a 10% median premium to acquire a company with a positive record for environmental, social, and governmental issues.”
Additionally, “Companies that track their social, environmental, and economic impacts are 63% more likely to survive a recession …[and] have greater revenue growth and higher employee satisfaction.”
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