BlackRock, B Corps and baloney

I am quite cynical about the idea of businesses breathlessly announcing to the world that they’re in it for social good.

Because it’s bloody hard to do.

For example, having members of the day-to-day workforce as part of the management board rather than just shareholders has a positive impact on corporate governance and productivity. The problem is that they ask questions and disrupt the zombie like march to bigger profits. There is a cost to the decision to bring these workers to the boardroom table.

Today, the world’s largest investor, BlackRock, has announced that it expects the companies it invests in to do social good. Those that don’t, risk being ignored by an organisation that manages more money than God.

But what does it mean to do social good? It’s the lack of real definition that raises an eyebrow from me.

Interestingly, there is a useful model and charter that can help guide an organisation towards that wonderful nirvana where profits flow along with social betterment. There’s even a name for the businesses that embark on this noble quest, B-Corps.

We’re talking about social good. Here’s a lovely nondescript picture to symbolise the environment. Courtesy of Eberhard Grossgasteiger.

Organisations such as Patagonia and Ben and Jerry’s are certified B-Corps. They have to adhere to rules and regulations that ensure everything from environmental impact to corporate governance and community activism are scrutinised and steps are taken to move them towards social good.

But here’s the kicker, the huge international brands that have taken this step to becoming B-Corps are the exception. Most of the companies are smaller and already quite heavily rooted in sustainability and social good. From vegan food services to renewable energy firms.

It’s just too hard to do if you’re a major international business.

So what to organisations do instead? They B Wash. They chuck social good in as an ingredient into the marketing mix and hope that not too many questions are asked of the end product. Communications firms are ‘briefed’ on this new, almost evangelical, belief that a company that was selling the tears of orphans an hour ago is now at the heart of the social good movement. Worst of all, they the comms teams execute the sinister requests.

Here’s what communications teams can do. Nothing.

Don’t entertain the idea of going live with something that feels thin and disingenuous. Don’t write the press release. Scrap the hashtag.

If there’s no skin in the game from the company, i.e. if there’s not a central cost (rather than a marketing spend), its probably a very nice facade and that’s not good enough anymore.

Say no. Have the conversation around what an honest, feasible investment into social good looks like for the business and try and engineer change within that organisation.

BlackRock has just handed everyone the business case for doing social good. Now let’s ensure that CMOs, CCOs and CEOs do it properly.

We have a role to play in this.

And that’s exciting.