The B Corp

Don’t know what a B Corp is?  Not to worry, most people don’t… yet.

In simple terms, “B Corps are a new type of corporation which uses the power of business to solve social and environmental problems.” – B Labs.  

There are currently 631 certified B Corps generating over $4.2 billion in revenues in 60 industries and 15 countries.  Certification for B Corps comes from a nonprofit called B Labs. They have a great site with lots of information about B Corp history, purpose, process and plans. Here’s the link.

The certification process covers four key areas – Governance, Workers, Community and Environment.  Organizations must demonstrate their commitment and track record in each of these areas to obtain and maintain certification.  This means that B Corps are committed to to governing themselves in a manner that leads to positive impact, treating their team members well, supporting their community and protecting the environment. B Corps go so far as to sign a Declaration of Interdependence that states they will “harness the power of private enterprise to create public benefit.”

Wondering if you do business with a B Corp and don’t know it?  Here are a few examples with B Labs descriptions and links to their assessments:

• Patagonia – Patagonia grew out of a small company that made tools for climbers. Alpinism remains at the heart of a worldwide business that still makes clothes for climbing – as well as for skiing, snowboarding, surfing, fly fishing, paddling and trail running.
• Etsy – Etsy is the marketplace we make together. We enable people anywhere to easily build and directly exchange with independent, creative businesses.
• Care2 – With more than 12 million members, Care2 is the largest online community of people making a difference in healthy and green living, human rights and animal welfare.

Want to learn more?  GOOD has a great info graphic that tells the B Corp story and progress.  You can check it out here.  You will see that there has been steady growth in the number of certified B Corps, states supporting legal B Corp status and businesses using the B Impact Assessment.  Philanthropegie also has information about B Corps on our site.

Wondering about growth?  Last week I learned that B Lab announced its commitment to certify 100 B Corporations outside the U.S. in 2013, responding to demand from entrepreneurs around the world to join the B Corp movement.  This announcement was made at the CGI 2012 (Clinton Global Initiative Annual Meeting)  PR Newswire (http://s.tt/1ojqS)

Most of us are used to a more black & white view of organizations.  They either exist to make money (for-profit) or to make the world a better place (nonprofit).  With B Corps, we see the lines blurring into a very interesting shade of gray.  These are organizations who are as committed to social and environmental good as they are to profits.  And, with a for-profit business model, the positive impact these organizations have is not dependent on donations, grants and volunteers.

This is a different paradigm.  One that Philanthropegie is excited about.  I hope you are too.