B Corporations have a simple yet ambitious mission of ?creating a new sector of the economy which uses the power of business to solve social and environmental problems.? This definitely sounds ambitious, and far from simple.? The idea is that this sector will consist entirely of a new type of corporation: the ?B-Corporation? (B Corp) which must meet rigorous and independent standards of social and environmental performance, accountability, and transparency.
Businesses have the opportunity to make choices on every level that can positively or negatively affect the community and the environment.? For example, businesses can choose to pay factory workers fair wages, or use foreign sweat shops to obtain the cheapest labor possible.? They can choose to recycle or produce large amounts of waste that will end up in landfills.?? They can be fully transparent with consumers about all business practices or they can launch advertising campaigns that stretch the truth in the name of enticing consumers.? Unfortunately, far too often current legal standards in the corporate world make it too easy for businesses to make the wrong choices.
B Corps understand that these choices matter.? Therefore, B Corps are structured in a way that makes the impact on the environment, treatment of employees, and giving back to the community just as important as pleasing shareholders through large profits.? This new sector of businesses will have a smaller impact on the environment, provide more people with meaningful jobs, and create better relationships between businesses and their communities.?? Clearly differentiating B Corps from traditional businesses also gives consumers the opportunity make informed decisions about what kind of businesses they want their purchases support.
Good Companies vs. Good Marketing
In today?s world of media, it is often hard for consumers to know the difference between a company doing real good in the world and a company just doing good marketing.? ?Going green? has recently become a trendy move to attract more business for traditional corporations.? Businesses are criticized for ?greenwashing? their images.? This means telling consumers they are green without taking the necessary actions to back up these claims.? For example, hotels often put cards or pamphlets in rooms talking about the steps they are taking to reduce energy and water usage.? They may also use recycling symbols and phrases like ?we?ve gone green? in their newsletters.? But who is actually holding them accountable for conducting business in an environmentally responsible way?? Traditional businesses with large marketing budgets can pay to tell consumers just about anything including how ?green? their business is whether or not they are truly reducing water usage or recycling.
On the other hand, when a company earns B Corps standing it acts as a way of letting consumers know that a third party has thoroughly assessed and confirmed both the environmental impact of business and the truth of the messaging the company releases to consumers.? No amount of marketing should be able to shadow a truly responsible business.
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This video helps explain greenwashing by poking fun at companies who use this tactic:
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More on B-Corporations
Visit B Corporations?? website to see if the businesses you support are in the B-Corp Directory, ?read B Corps? Blog, or read about other socially and environmentally responsible businesses that recently became certified B Corps: Hopstop, Elements Natural, Open Neighborhoods, and Better World Books.? At BAO, we just completed our USDA organic certification and are on to becoming a certified B Corp.
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