Impact 101: B Corps
As the movement towards responsible business has gained momentum, many tools and frameworks have been developed to guide businesses through the process, measure their success and benchmark their results. Our mission at Impactful is to make these tools and frameworks accessible and actionable for every business.
One of the most trusted and accessible frameworks for small businesses is B Corps. We spoke to Paul Coverdale from purposeAMPLIFIED, a trained B Leader, who talked us through what a B Corp is and how it can be a great way to embed purpose and impact into the heart of your business. Sign up to our newsletter to get these directly into your inbox.
Could you tell us how the B Corp movement came to be?
In 2006 three friends in the US decided that there had to be a better way of supporting mission-led businesses. They wanted to created a framework that helps companies to measure their social and environmental impact and protect their mission and the idea for B Corp was born. There are now 3,500 B Corps in 70 countries around the world. The movement launched in the UK in 2015 with 42 founding companies and there are now 400 here in the UK (a figure that grows every week). It was B Lab UK’s 5th birthday earlier this month and to celebrate they’ve written their story so far.
What is the mission of B Corp?
B Lab, the non-profit behind B Corp certification, is transforming the global economy to benefit all people, communities, and the planet. It is shifting the perspective of business to consider all stakeholders, not just shareholders. Pioneering B Corps lead the way through their activities and business models to deliberately show that business can have a positive impact and be a force for good in the world.
What kind of businesses can become a B Corp?
Any business, of any size, of any legal form, in any sector is eligible to become a B Corp. The B Corp community includes everyone from solopreneurs to multinationals, well known brands, social enterprises, retail, professional services….there’s a really broad cross-section. In the UK it includes hero companies tackling a specific problem like Elvis and Kresse, and those with a strong purpose led ethos such as The Body Shop or Innocent Drinks. Notably, the Jamie Oliver Group and Guardian Media are amongst the new B Corps certifying this year.
What are the benefits of becoming a B Corp?
There are so many! The principal one is that simply through certifying, B Corps think about what they stand for — the ‘why’ of their business. They can clearly articulate that to the wider world, which makes them an attractive proposition to many groups. Investors are increasingly looking for sustainable, ethical businesses to fund. Those in the job market are making it clear they want to work for companies that will look after them and the things they care about. Being a B Corp not only helps you attract talent but retain it too — it is not surprising that B Corps often feature in ‘best companies to work for’ surveys. Consumers have an expectation that business should behave better and are seeking out those that can prove it, which the B Corp label makes it easy to do. Internally, you’ll incorporate environmental and social factors into your day-to-day decision making and practices, and be more resilient to future shocks — something we’ve all had to get used to in 2020.
Most importantly though, B Corps make a positive impact to the planet or society in some way through a combination of reducing or eliminating harmful practices and deliberately, proactively helping others. B Corps are very much part of an inclusive, supportive community and you get a real sense that your business is now part of something more important.
What does the process of becoming a B Corp look like?
There are three principles that guide the journey to becoming a B Corp: impact measurement, accountability and transparency.
The bulk of the process part of becoming a B Corp is the completion of what’s called the B Impact Assessment (BIA). It’s a tool that measures a company’s full operational impact across five areas: governance, workers, the environment, customers and community. You will be asked around 200 questions, tailored to your size and industry, about all aspects of your operations, policies, practices and business model. Even better, within the BIA is an SDG Action Manager that explicitly links your answers to the relevant UN Sustainable Development Goals. The BIA is positively scored so that you earn points for doing good things, which you’ll be expected to prove. For example, if you use renewable energy in your office you’ll accrue some points. If you don’t you’ll score zero for that question.
The other change that all B Corps undertake is to make a public, legally enforceable commitment to consider all stakeholders. This takes the form of amending a company’s articles of association (or equivalent legal documents). For some, this can be a big step and is one that requires careful consideration by directors and business owners. It’s a fundamental part of certification which satisfies the principles of accountability and transparency. B Corps have to produce an impact report after certifying and their BIA scores are publicly visible for everyone to see. Many choose to incorporate the framework into reports and declare their score themselves.
Once you’ve made the legal change and achieved an independently verified score of 80 points or higher on the BIA, you sign the B Lab Declaration of Interdependence, pay the fee (scaled to your revenue), and that’s it — you’re a B Corp. Congratulations!
What would you say are the major challenges of being a B Corp?
There is only one real challenge to becoming a B Corp, and if you address it properly the rest of the process becomes easier: really commit to it! It will require a shift in culture and thinking throughout the business, which will be small for some but greater for others. Measuring your impact takes time, and if everyone involved can see the greater purpose — rather than it just being a process driven, box-ticking exercise — the journey will be smoother and faster.
If I’m interested in becoming a B Corp, where should I start?
Although reaching 80 points on the BIA is (quite rightly) challenging and defining the purpose of your business might require some reflection, starting couldn’t be more straightforward in both cases. Here are two things you can do today:
- Register your company with B Lab by creating an account and start to explore the BIA. It’s free and confidential, and only takes a couple of minutes.
- Start a conversation with a colleague about the purpose of the company. Why does it do what it does? Then have another one with someone else. There are many ways these discussions could develop, but answering that question as a company is central to defining your purpose in legal terms.
You’re a trained B Leader, what does that mean and how could you help me?
I’ve been trained by B Lab in all aspects of B Corp certification from BIA registration through to celebrating your success at the end. I’m a huge advocate of the movement — more B Corps means more companies making a positive impact and creating systemic change. Whether you want to learn more about B Corp, need some guidance about making the legal change or more in depth help with the BIA to get to 80 points, then I’d be glad to help.
What would your advice be for business leaders looking to increase their positive social and environmental impact?
Start with working out the purpose of your business. From this all else flows and decision making becomes easier if you have that purpose in mind. You don’t have to save the world, just help the part that you really care about.
Where can business leaders learn more about B Corps and the work you do?
For all things B Corp, check out B Lab’s website which has lots of information and a handy directory of B Corps here in the UK.
My business is called purpose AMPLIFIED and I created it to help SMEs think about their purpose then act upon it to make the world a better place. The B Corp framework provides me with the tools to help. If that resonates with you I’d love to have a conversation — for which I will plant you a tree! Just drop me an email hello@purposeamplified.co.uk or connect with me on LinkedIn. Now is a perfect time to be that hero business.
Thanks Paul for sharing your knowledge with us! Our mission at Impactful is to make impact more accessible and actionable for every business and B Corps and B Leaders like Paul are brilliant collaborators. If you’d like to talk about your impact ambition and you’re not sure where to start we’d love to hear from you, hello@impactful.world. You’ll also find us on Twitter & our newsletter!
