“Registering as a B corp can save your company money in the long run. You’ll have access to B corp community data, which provides you access to learn the most cost-effective means to be sustainable. Plus, the certification process helps companies identify needless and wasteful spending.”
Companies are increasingly recognizing the importance of integrating social and environmental priorities into their profit-driven mission. The B Corp certification process allows companies to assess their operations and create internal changes that benefit their stakeholders, community, employees, and the environment. With over 6,000 certified companies in +80 countries, the B Corp movement is growing fast across the globe. If you aren’t considering it, you should and here’s why:
Cost-savings: Becoming a B Corp increases savings in the long run while mitigating costs associated with risks. These cost savings can amount to 51-81% on your company's bottom line over a 3-5 year period while preventing a potential erosion of profits that might otherwise result in a loss of 16-36% . Additionally, as a part of certification, a company will find cost savings in operational efficiencies, decreased waste, and attracting long-term employees (less turnover).
Attract Investors: Investors are increasingly looking to invest in companies committed to delivering long-term value. While B Corps focus on social and environmental impact, they also consistently demonstrate strong financial performance. The B- Corp certification allows for sustainable long-term growth and doing ESG well, providing a well-rounded investment. Investors may also be attracted to B Corps for having a strong competitive advantage.
Competitive Advantage: Industry recognition of the B Corp certification allows companies to claim their identity and credibility as a purpose-driven organization, differentiating themselves from the competition. Becoming certified shows customers that companies have put in the due diligence to embed sustainability principles throughout their operations. Walking the talk in terms of sustainability is currently a strong strategic move in a policy landscape that is increasingly changing.
Attract values-aligned customers: Customers increasingly want to buy from companies that share their values. The B Corp certification makes companies stand-out and increase trust and brand loyalty amongst consumers who are weary of green-washing.
Improving Operations: The stringent process of certification requires companies to make tangible operational changes that have concrete long-term impact in the following 5 areas: governance, workers, community, customers, and environment. B Corp continuously collects the best practices in these areas and provides resources to companies as templates and best practice guides.
Attract impact-driven employees: People increasingly want to work for organizations that do good in the world. B Corp companies offer employees meaningful work that goes beyond financial profit. They tend to attract talent and have been shown to have longer employee retention.
Risk Mitigation: Future economic policy will increasingly align with sustainability goals. B Corp companies will be better equipped in this changing policy landscape. B Corp certification requires integrating sustainable practices into supply chains which will be more resilient with climate change and ecological degradation.
Improved relations with suppliers: As a part of certification, B Corps will require their suppliers to measure their impact and pursue continual improvements. By requiring suppliers to factor environmental or social benefits into their decisions, both parties will align with a common mission, building comradery to advance the stakeholder economy. Strong supplier relations increase resilience in times of change.
Increased Control: While a traditional company has a purpose to solely serve shareholders, B Corps have a responsibility to commit to goals other than profit. This allows managers to focus on the broader purpose of the company. B Corp allows for pivoting in times of change and being nimble in reaching goals.
Legacy Planning: The B Corp certification becomes legally bound into a company’s policies, practices, and procedures. It cannot be changed under new directions of leadership. The commitment to social and environmental sustainability therefore becomes irreversible.
B Corp companies show that they are concerned with both shareholder and stakeholder success. Certification is a great option for companies who are looking to demonstrate that they are a values-based organization. Companies who become certified consistently have strong financial performance, along with increased customer loyalty, resiliency, and employee well-being. Additionally, they get to become a part of a global community of change-making companies!
“Our employees love to work here. In our most recent employee survey, a top area was ‘my work is satisfying to me.’ This explains our ability to attract millennial talent and maintain a 98% employee retention rate.”