Described as the business organization for the 21st century with the “M.O.” of using business as a force of good, there has never been a better time than now for a startup to incorporate as a B Corp. Companies like Patagonia, Method, Warby Parker, and Good Worldwide are just a few businesses leading the pack as B Corps, some of which are already revolutionary for being the first to incorporate as this entity in their states.
As Rose Marcario, CEO of Patagonia, so succinctly puts it, the B Corp movement matters because business is more than just serving shareholders. “[Business] has an equal responsibility to the community and to the planet.”
However, despite the fact that more than 30,000 businesses are certified B Corps and over 20 states have passed benefit corporation legislation, the buzz around B Corps is still more underground than your average legal entity. The stakes are also higher as B Corps are held to a higher standard—you need to meet a performance requirement in order to file as one—which can easily intimidate entrepreneurs.
But don’t let this scare you away! With so many successful companies committed to doing good, let’s take a page from their books to see how established brands are redefining small business success as B Corps.
They make good on their commitment to community.
Ever wonder what happens with the “one-for-one” business model where making a purchase from a socially conscious company means a donation of that item will be made to a person in need? Free Enterprise conducted a study that revealed this model is actually a booming success. B Corps like Warby Parker have donated 2 million pairs of glasses, and Better World Books has provided children throughout the world with more than 20 million books to read and enjoy.
While these are exceptionally high numbers, remember that none of this happened overnight. The commitment that B Corps have towards changing the world, though mighty, is more often than not made in small steps. Committing to giving back remains the heart and soul of a B Corp and it is that attitude that allows B Corps to thrive passionately.
Being bigger than themselves attracts investors and talent.
Anyone who works for a small business can tell you that a positive attitude and willingness to wear lots of different hats will take you far. Who wouldn’t want to work for a company dedicated to creating a positive social impact? This same attitude also attracts investors.
As B Corporation explains, social investors are looking to invest in companies that achieve a high social impact, command higher valuations, and are structured to maintain their mission after the next financing or IPO. In turn, B Corp entrepreneurs seeking mission-aligned capital also want to achieve a greater impact, command higher valuations (which comes fairly easily since they are so trusted by consumers), and build companies with integrity.
While this pairing seems like a win-win all around, the acquisition of any business, even a mission-driven one, means the brand equity remains at risk. Everyone involved, from consumers to employees, will wonder how much a B Corp will remain true to its mission after the sale. Luckily, as B Corporation notes, a B Corp that opts to become certified and maintains its certification after the transaction helps to minimize any brand risk.
Igniting the flames of purpose-driven marketing.
Do we really need the many things we are told we should buy? For decades, marketing and advertising campaigns have driven purchasing decisions by encouraging consumers to buy what is “cool” or “new” right now, but kept details such as where the item is made and what it is made out of under wraps. As consumers have become more conscious of their spending habits, they are choosing to buy what will better their lives—the perfect time for a B Corp to shine!
One B Corp at a time, the marketing conversation is being revamped for the better. Anne Boyle, Partner and Director of Strategy at RoundPeg, shared in The Huffington Post that ever since her company became a certified B Corp, it has strengthened its commitment to the world and has also inspired its own team. Knowledge is power and marketing is moving away from encouraging a superficial society. Or, as Boyle puts it, “… [it’s] the exact tool needed to make the good choice the easy choice.”
When B Corps succeed, every business succeeds.
Ultimately, as more states pass legislation, more businesses choose to file as this entity, and more positive word of mouth grows, the less the B Corp movement stops being a novelty and becomes the norm in society. The beauty of the B Corp is that there are no sacrifices in forming one. You get to run the business of your dreams, earn a profit, and better the world along the way.
If you’re still asking yourself, “Why B Corp?” you might already know the answer.
The post How B Corps Are Redefining Small Business Success appeared first on AllBusiness.com
The post How B Corps Are Redefining Small Business Success appeared first on AllBusiness.com. Click for more information about Deborah Sweeney.
Sig Nordal 