Eco-friendly, green and biodegradable are terms commonly used in business strategies, marketing and communication tactics. The market is noisy with sustainability claims, which begs the question of how businesses can adopt a model that demonstrates a real commitment to social and environmental responsibility.
While there are many avenues leaders can take to navigate and show the sustainability pillar of their business, there is a growing trend toward an external, third-party assessment known as becoming B Corp certified.
Not only can this certification provide a framework for positive impact and change, but it can be an incredible driver in helping businesses to differentiate themselves from their competitors, attract socially conscious customers and win over top talent to help propel a business forward.
What is B Corp certification?
The B Corp movement has been pioneering a new way of doing business, which requires increased stewardship and a real shift in priorities.
B Corp certification is a designation that a business is meeting high standards of verified performance, accountability and transparency on factors ranging from employee benefits and charitable giving to supply chain practices and input materials.
In order to achieve certification, a company must pass a series of assessments and audits and undergo this verification process every three years in order to re-certify, fostering the notion of continuous improvement and long-term resiliency.
More than ever, businesses need to be transparent in sharing their values and purpose to attract the right people for the job.
While this may seem somewhat arduous, several studies, such as Nielsen’s ‘The Sustainability Imperative’, suggest that global consumers will pay more for sustainable consumer brands. This also showed that the sales of consumer goods with a demonstrated commitment to sustainability have grown by more than four percent globally, while those without grew less than one percent.
And in the wake of the Great Resignation and other trends such as quiet quitting and rage applying, we can see that there is a growing disconnect between many employers and employees. What this indicates is that, more than ever, businesses need to be transparent in sharing their values and purpose to attract the right people for the job.
With this in mind, here are a few reasons why becoming a B Corp is good for business.
Cultivating a purpose-driven culture
The first reason centers around the growth of a purpose-driven culture, one that is fueled by ambition for doing good and a true connection. A B Corp certified company is required to consider the impact of its decisions on its workers, customers, suppliers, community and the environment.
Not only does a purpose-driven culture drive stronger employee engagement, it can also instill heightened loyalty and a greater willingness to recommend the company to others.
As a result, there is a strong sense of purpose, with many top talents seeking to work with companies that have a mission beyond profit. This is especially true with younger generations who are eager to make a positive impact and help drive solutions to combat climate change and issues that will greatly impact their future.
And, according to a recent study by McKinsey & Company, many workers no longer want to just do work. They want to do good. With 70 percent of respondents saying they define their sense of purpose through work and, in particular, are looking for opportunities in their work to contribute to what they believe in.
Not only does a purpose-driven culture drive stronger employee engagement, it can also instill heightened loyalty and a greater willingness to recommend the company to others, all incredible benefits to a business, its credibility and reputation.
Adopting the triple bottom line
Becoming a B Corp can also help leaders start to work toward a triple bottom line framework, a phrase coined in the mid-1990s by serial entrepreneur and Volans Co-Founder John Elkington as he sought to measure the emerging concept of sustainability performance in corporate America.
The triple bottom line approach, which emphasizes the importance of considering social, environmental and financial factors in business decision-making, has significant benefits for a business and, in particular, attracting the right talent.
Employees are more likely to feel engaged and committed to their work when they feel that their employer values their health, safety and happiness, as well as the welfare of the wider community and environment.
Employees are more likely to feel engaged and committed to their work when they feel that their employer values their health, safety and happiness, as well as the welfare of the wider community and environment.
By prioritizing the wellbeing of people and the planet alongside profits, companies can create a more sustainable and ethical work environment, improve positioning to conscious consumers and futureproof the company’s reputation.
Incorporating the triple bottom line – the people, planet, profit paradigm – into business DNA is an indisputable competitive advantage in an established industry by creating a more sustainable and ethical business model that promotes long-term success and positive impact.
Increasing the competitive edge
Becoming a B Corp can also be a powerful way for businesses to differentiate themselves from competitors while also making a positive impact in the world. This competitive advantage is especially highlighted in a market that cares more and has a long-term commitment and focus on its ESG.
In a world rife with misleading information, claims and promises, this type of certification can provide long-term benefits and opportunities to help a company stand out, attract and retain the right talent and ultimately work toward a better way of doing business.
This notion of a competitive edge also stems from a networking and resource capability. In particular, joining a global community of like-minded businesses that are committed to using business as a force for good. This network can provide opportunities for collaboration, learning and sharing best practices. In particular, this acquisition of knowledge has tremendous benefits for both employees and leadership alike as we continue to uncover better ways of working.
Becoming a B Corp is by no means an easy feat. But in a world rife with misleading information, claims and promises, this type of certification can provide long-term benefits and opportunities to help a company stand out, attract and retain the right talent and ultimately work toward a better way of doing business that puts the planet first.
Gary Smith is the CEO of BioPak, a B Corp and award-winning, global leader in compostable single-use packaging that provides innovative, plant-based alternatives to foodservice plastics and helps businesses work towards a circular economy.
