Why companies are becoming B-Corporations
Growing concern with environment and social issues and thee pressure from citizens and consumers for Companies to step up to these challenges are leading to another interesting Trend – for companies to either be incorporated as B Corporation or, as an alternative, to be certified as a B Corporation. The first option implies having legislation in place (at it happens in US and UK), he second is “ready to go”, any Company can start the process to be certified.
A Benefit Corporation is an incorporating structure similar to any for profit Corporation, but unlike these other entities, however, a Benefit Corporation must consider the impact of its business decisions on all stakeholders—not just shareholders or members —while creating a material positive impact on society and the environment.
A certified B Corporation is a company must meet rigorous standards of social and environmental performance, accountability and transparency, and to be certified by the non-profit organization B Lab (https://bcorporation.net/). This is a global movement of people and companies “using business as a force for good”, with a fantastic claim: “in the future companies will be competing not only to be the best of the world, but to be the best for the world”.
In other words, this certification, for many companies, may be seen as strategic in the sense that will be another piece of the puzzle called “creating a sustainable competitive advantage”
To date, there are almost 3000 certified B Corps operating across 150 industries in 60 countries throughout the world. The rise of the B Corp on the global stage is a phenomenon that has the potential to redefine success in business and create a more social and environmentally beneficial economy.
As Rose Marcario, CEO Patagonia says ”The B Corp movement is one of the most important of our lifetime, built on the simple fact that business impacts and serves more than just shareholders -- it has an equal responsibility to the community and to the planet”.