Companies are urged to have a positive environmental impact so as to enable people emulate them. Most companies say that they’re doing the best for the environment, but they are simultaneously engaging in business practices that are immoral, illegal and unethical. However, there are businesses that are actively involved in addressing the many environmental and social issues that affect the consumers. These kinds of businesses are known as B Corp or Benefit Corporations and they place doing good to be as important as making money.
B Corp is a mission-driven business that has been built to offer social and environmental impact to the society. B Corps businesses are redefining what it means to use a business as a force for good and they focus on creating sustainable success for workers, communities and the environment. They have B Corporation certification to show that they are operating in a sustainable and ethical way. They work under Conscious Capitalism where businesses reflect the current state of the world and the potential of a business to make a positive impact on it.
Conscious capitalism is a non-profit organization that acknowledges that the most powerful system or human progress and social operation are free market capitalism but they can aspire to even more. It doesn’t shun away the pursuit of profit, but emphasizes on doing so in a manner that integrates interest of all major stakeholders in a business. Conscious capitalism will build on the core foundation of capitalism such as entrepreneurship, voluntary exchange, freedom to trade, rule of law, trust collaboration, compassion, and value creation.
Being part of the B Corps movement means that you are dedicated to creating a more conscious and just economy that will work for all. You acknowledge that you are obligated to serve not only your shareholders, but the people and the world as well. Members support each other’s community and financially by refereeing businesses to one another. Certification is voluntary and can be changed at any time by the business owner and when a certified Corps pay the membership fees which is based on the annual revenues, the money goes to support nonprofit activities of B Lab. In return for membership fees, the B Corp business receives membership benefits.
For businesses to measure their consciousness conscious capitalism has a tool that is called Impact assessment and the tools are designed to give business owners a baseline for the current environmental and social performance and also give specifications that will help them improve their practices. The tool grades businesses on 17 social and environmental topics and it gauges how businesses are doing in regard to sustainability measures and it can also help your business to focus attention on these dimensions hence getting better each year.
There are many B Corps located in various countries in the world and they hold various gatherings in the world, including an annual retreat, support each other’s businesses by providing opportunities and impacting legislation and policies throughout the country and the world. Their aim is to make money while making the society a better place to live in. The B Corp movement has been lauded by Bill Clinton, David Brooks and Robert Reich amongst others.