A Purpose-Driven Business Model Is the Way of the Future
According to Certified B Corporation, B Corps (B for Benefit) “are businesses that meet the highest standards of verified social and environmental performance, public transparency and legal accountability to balance profit and purpose.” Businesses are assessed in the B Lab, based on how they impact every person–on a social and environmental level–by their operations and not just their shareholders.
Increasingly, companies are recognizing the value of being driven by both mission and profit. In the article “The B Corp Movement Goes Big” of the Fall 2020 Stanford SOCIAL INNOVATION Review, it is stated that “more than 3,000 companies across 71 countries have been certified as B Corps.” Take TOMS, for example–an essential component of their business model is to donate a pair of shoes to a needy child, for every one sold. They have expanded that to include eyeglasses, too.
This model has been so successful–for their profit margins as well as their give-back mission–that their BOGO (Buy One Give One) model has been adopted by other companies including Bixbee (backpacks) and Bombas (socks). We too are considering a similar model to help more underserved and underrepresented entrepreneurs access our SUMMi7 Business Scaling Method course.
It’s this type of purpose-driven philosophy that is at the core of a B Corp.
Becoming a B Corp is a good way a company can hold itself accountable and committed to making an impact. If you are considering achieving B Corp status, there are definitely some benefits, from potential cost savings to encouraged social responsibility. But, even if B Corp status isn’t your goal, here are 5 reasons you should think like a B Corp:
Customers Expect It – With many options to choose from and as purpose-driven companies become the norm, more and more people will choose products (and companies) that are sustainable, add purpose and value, and are inclusive in their mission.
Employees Seek It – In an attempt to align themselves with companies that share their values, employees desire to work for companies with purpose, who create a positive contribution to society. This can also foster morale within the ranks.
Communities Need It – B Corps help companies focus on local impact and community engagement. When companies make a commitment to be purpose-driven, the impact extends beyond shareholders to the entire community that reep the rewards of a socially or environmentally conscious company.
Create Longevity – In making decisions and growing your company based on a purpose-driven philosophy, it will help to balance short-term pressure with long-term outcomes.
Increase Innovation – When you foster a culture of transparency and employee development, encourage engagement and incorporate customer feedback into your business processes and decision making, you will create a more innovative environment.
To learn more about B Corps, visit bcorporation.net.