In recent times, the international business environment has increasingly embraced socially and ecologically conscientious practices, spearheaded by “Benefit-For-All” Corporations, also known as B Corps. These profit-oriented entities uphold exceptional standards of performance, accountability, and transparency.
This movement initiated in 2006 with the establishment of B Lab, a nonprofit organization that created the “B Impact Assessment” to measure a company’s social and environmental influence. To obtain B Corp certification, enterprises are required to achieve a minimum score of 80 out of 200 points and to comply with standards related to governance, employees, community, environment, and customer relationships.
B Corps are also obligated to modify their legal frameworks to mandate that the board of directors must consider both profit and purpose. Since the movement’s inception, B Corps have seen remarkable growth, with over 8,900 companies certified across more than 101 countries and representing 162 sectors, ranging from retail and manufacturing to finance and technology.
Recently, two prominent B Corp companies, Cotopaxi, known for its outdoor gear and apparel, and Intrepid Travel, specializing in small-group travel, partnered for a trip to Ecuador to demonstrate how their shared missions of “gear for good” and “travel for good” foster a new brand success centered 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, conveyed their experiences on being B Corps and how this designation has reshaped their businesses and industry presence.
Why Choose B Corps?
“Our founders envisioned a company committed to creating sustainable outdoor gear that enables experiential travel while ensuring the business contributes positively to alleviating global poverty,” Agle elaborates. “They believe that B Corp is the most impactful, comprehensive, and rigorous certification a business can attain to demonstrate a net positive societal impact.”
King concurs, adding that as part of a global initiative where business is utilized as a force for good, B Corps like Intrepid Travel assure their current and prospective customers of a steadfast commitment to benefiting both people and the planet.
“Additionally, maintaining B Corp status involves recertifying every three years, emphasizing the ongoing pursuit of enhancing performance and impact metrics,” she explains.
This aspect is particularly critical as techniques for greenwashing become ever more sophisticated. Many market players and labels claim sustainability, often purely for show. In contrast, B Corp certification is recognized as one of the most challenging and esteemed, granting customers across various sectors a reliable standard. “Even the impact assessment itself delivers an excellent framework for comprehensive advancement in conscious capitalism,” notes Agle.
The B Corp Evaluation
Though the initial assessment is thorough, King highlights the five key areas that the B Corp evaluation reviews—governance, customers, employees, community, and environment. “Every aspect is meticulously audited: everything from our CEO to the supplies we use and the sources of our energy,” she emphasizes.
- Governance delves into the board of directors, policies, procedures, and execution of business operations.
- Workers examines wages, working conditions, opportunities for advancement, and workforce diversity.
- Community addresses the supply chain—from raw materials to partner organizations throughout the production journey.
- Customers consist of individuals utilizing the products and services offered.
- Environment evaluates the overall ecological footprint of the business—the materials utilized, transportation methods, energy consumption, distance of supply transport, waste generation, and disposal processes.
Advantages of Being a B Corp
Organizations that attain B Corp certification enjoy a variety of advantages. “It compels you to formally integrate processes that consider societal and environmental aspects in every aspect of business,” states Agle. This corporate discipline enhances brand image and fosters trust among consumers who increasingly prefer ethical practices.
Recent studies, including those conducted by IBM in partnership with NRF and the Baker Retailing Center at the University of Pennsylvania, reveal that between 50% to 66% of consumers are willing to pay more for sustainable products, underscoring the importance of certification in attracting and retaining customers.
B Corps often witness enhanced employee satisfaction and retention. By emphasizing social and environmental objectives, they cultivate a supportive work atmosphere that draws in mission-oriented employees seeking meaningful roles.
Moreover, B Corps can tap into a nurturing community of businesses with similar values. This network offers avenues for leadership, collaboration, learning, growth, and collective problem-solving. “This network elevates you into a peer community with brands that are seriously addressing sustainability, inclusion, and conscientious business practices,” notes Agle. For instance, Intrepid leads the B Corp Climate Collective and heads the Asia Pacific B-Tourism Group.
Ultimately, B Corps can achieve sustainable long-term financial performance. Businesses that merge social and environmental objectives with their operational strategies are typically better at navigating market fluctuations and regulatory shifts. Agle points out that such companies become increasingly attractive to investors who use certification as a standard for holding portfolio companies responsible, particularly in high-risk industries like textiles and manufacturing.
The Societal Impact of B Corps
B Corps significantly influence society by endorsing sustainable and ethical business methods while prioritizing social goals. For instance, Intrepid has introduced a decarbonization toolkit, along with an open-source guide for carbon measurement and a carbon labeling system to actively monitor their climate change impact. “We also allocate staff time and financial support for community initiatives, such as Australia’s ‘YES23’ for Indigenous parliamentary representation, Climate Change Makers’ ‘Hour of Action’ in New York, and Canada’s Climate Justice March aimed at halting fossil fuel combustion,” adds King.
Socially, B Corps encourage inclusive and equitable workplaces, advocating for fair labor practices and community development. For example, Cotopaxi ensures that 94% of its workforce receives a living wage, often exceeding the minimum wage. “This commitment has become increasingly important to us and was prominently featured in our latest impact assessment update; we feel strongly that we need to take a stand for poverty alleviation,” states Agle.
As awareness and demand for responsible business practices rise, B Corps like Intrepid Travel and Cotopaxi are tackling global issues such as climate change, inequality, and social injustice.
With sustainability gaining traction, the population of B Corps continues to rise. Legislative changes may further bolster this model by recognizing and incentivizing businesses that prioritize social responsibility.
By illustrating that profit and purpose can coexist, B Corps are driving substantial global change.
