GLOBAL CHALLENGES

B Corps: Wanna B One?

John Jainschigg | Date: 06-02-09 | Comments

Every organization should think about joining the B Corporation program�whose mission is to standardize a framework for socially beneficial companies.

B Corps are ... a lot of different things. For starters, the B Corporation program is an attempt to standardize, promulgate voluntarily and eventually have ratified a legal framework for socially beneficial companies�one that articulates a clearly defined environmental and social mission in addition to the mission to produce shareholder value.

In another sense, the program begins to elaborate a transparent reporting framework for talking about these "other" missions in concrete terms�acknowledging the value both of attempts to align core business direction with environmental and social virtue, and the value of understanding any business�s social and environmental footprint, and working to optimize it. The goal of such radical transparency is to keep score, reward authentic, consistent and integrated efforts, and push back against superficial "greenwashing."

In yet another sense, the B Corporation program is effectively a consortium of like-minded businesses, dedicated to one another�s success�a venerable concept, but no less utilitarian for all that.

Finally, the B functions as a seal of approval, issued (upon payment of sliding fees) to qualifying organizations by a private governing body that styles itself a laboratory ("B Lab"). At present, the functioning of B Lab is the most nebulous aspect of this young effort, though over time it may end up being the most important�not least because an entire category of business intelligence software and reams of best-practice are now coalescing around discovery, planning, governance, compliance, risk management and optimization of environmentally conscious and socially progressive business strategy (for example, as promulgated by Amit Chatterjee�s new company, Hara).

With over 128 members in 31 industries�including retail consumer talismans such as Seventh Generation, Method and King Arthur Flour�the B Corporation program is already off to a solid start. Whether or not you�re interested in forming or transforming your existing firm to work in the B mold, it�s instructive to go through the evaluation process, fill out the membership survey and use it as a way to start thinking about corporate responsibility in more pragmatic ways.