GLOBAL HEROES
BY SARAH SHEARMAN
PURPOSE OVER PROFIT ARE B-CORPS THE FUTURE OF SUSTAINABLE BUSINESS?
From fashion to finance, thousands of businesses have opted to be certified as B Corporations - those that balance profit with purpose committing to meet high standards on issues from the treatment of staff to environmental impact. The concept, which began 14 years ago in the United States, is still small, but it is growing in popularity as business leaders move away from the long-held view that companies exist only to maximize profits for shareholders. Last year, the number of B Corps swelled by 25% as businesses, including the American shoe brand TOMs and the Guardian Media Group, owner of the British newspaper, signed up. Once largely made up of smaller businesses specifically set up to do good, the category now includes major global corporations such as yogurt giant Danone’s North America arm. Brazilian beauty brand Natura, which owns Britain’s Body Shop, was the first publicly listed company to achieve the certification in 2014, blazing a trail for others. “The achievement of certification was a proud moment for us,” said Luciana Villa Nova, Natura’s sustainability manager. “In many ways, being a B Corp is an indication that we are on the right path towards sustainable
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development while generating consciousness of what we can make for society to progress.” There are now 3,243 B Corps in 75 countries, from big multinationals such as French food and drinks giant Danone to smaller social enterprises like British coffee brand Cafédirect. B Lab, the U.S. non-profit behind the certification, aims to jolt businesses into action - one of its stated aims is to help people tell the difference between good business and good marketing. The relatively high cost and stringent requirements of becoming a B-Corp means it attracts companies with a genuine commitment, advocates say. But some experts argue the scheme has neither the reach nor the authority to bring about change on a meaningful scale. While the number of B Corps is growing, it is still a tiny proportion of the 27.5 million businesses in Europe, or about 5.9 million in the United States, according to government data. “B Corp, whilst ethical and trying to do a good thing, might attract low-hanging fruit - those already socially, environmentally responsible, or those seeking a short-cut,” said Michael O’Regan, an academic who is researching B Corps. It, therefore, is not the “force for radical change” required to tackle the world’s pressing problems, said O’Regan, senior lecturer at Bournemouth University.
© REUTERS-Andrew Winning
To B or not to B - a question ethicallyminded businesses around the world are increasingly asking themselves.
