The B Corp Movement People Using Business as a Force for Good One Question © 2016 B-Corporation

Capitalism is not designed to address society’s greatest challenges What can businesses do?

About the B Corp Movement https://www.youtube.com/watch?v=vkGBlclgwaE PBS Newshour on B-Corp The B-Corp Movement

TRIPLE BOTTOM LINE Economic Equity Environment (Profit) (People) Provide Jobs Produce Goods & Services Provide a Return on Investment Engage in Corporate Social Marketing (Changing Behavior) Offer Employee Ownership Options Invest in Good Causes (Corporate Philanthropy) Equity (People) Pay Fair Wages Provide Benefits Practice Non-Discrimination in Hiring and Promotion Adopt Family-Friendly Policies Promote Healthy Work Environment Consider Future Generations Environment (Planet) Prevent Pollution Reduce Waste Conserve Non-Renewable Resources Adopt Green Purchasing & Investment Policies Design Ecological Systems Promote Biodiversity   Elkington, J. (1997). Cannibals with Forks: the Triple Bottom Line of 21st Century Business.

Who Certifies B Corps? B Lab is a 501(c)3 nonprofit that serves a global movement People using Business as a Force for Good.

Consumers are Demanding Better 503 370

B Corp Speaks to Consumers 73% of conscious consumers care about the company, not just the product. (LOHAS) <1% of conscious consumers trust company ads or packaging statements when assessing whether a company does what it says BBMG Research, 2012 LOHAS estimates that there are over 60MM conscious consumers in the US. <1% of conscious consumers trust company advertisements or statements on packaging when assessing whether a product or company is or does what it says *Research conducted by BBMG

PR: The World is Taking Notice “B Corporations are a way to transcend the contradictions between the ineffective parts of the social sector and myopic capitalism.” “The B Corp movement is one of the most important of our lifetime, built on the simple fact that business impacts and serves more than just shareholders – it has an equal responsibility to the community and to the planet.” Patagonia CEO Rose Marcario. “B Corp certification gives social-impact businesses street cred among customers, employees, investors and business partners.” Companies with Benefits” August 2014, The New Yorker “The Creative Climate” July 2014, David Brooks “In the Unites States, we now have states passing laws authorizing the creation of a new kind of corporation, a benefit corporation…this company is a long term value company that also takes into account the interest of its employees, its customers, and the community of which it is a part.” President Bill Clinton “Becoming a B Corp raises the reputational cost of abandoning your social goals.” “

Meet Greyston Bakery Yonkers, New York Created a business that trains people with barriers to employment (ex-cons, homeless, drug history)

Meet Microgrid Energy Microgrid -Founded in the late 60s, 3rd generation, family owned business that makes vacuum filters and silencers. Traditional, industrial company that, after learning about Greyston Bakery in 2010, was inspired to begin journey of figuring out how they could use their business as a force for good. 20% of employees hired from underserved communities. Donates 23% of profits to charity. Overhauled design, manufacturing, and distribution processes to meet high standards of environmental performance and sustainability practices. Hired a LEED AP certified sustainability manager to ensure continuous improvement, working towards towards goal of 100% LEED manufacturing plants and processes. Currently over 50% energy derived from renewable Became B Corp in 2011, best for the world in 2014 +2015 More background: B Corp profile http://www.bcorporation.net/community/solberg-manufacturing-inc Company history: http://www.solbergmfg.com/ViewFeature.aspx?FeatureId=8 Company sustainability highlights: http://www.solbergmfg.com/ViewFeature.aspx?FeatureId=11 Microgrid

B Lab B Corporations fill that gap. It’s like fair trade, but for the whole company. B Corp certification provides proof that a company is living it’s values

What are Certified B Corps? Companies using business as a force for good. They meet verified higher levels of: 1. Social & Environmental Performance Min 80 pts on B Impact Assessment 2. Transparency B Impact Report Transparent 3. Accountability Expand fiduciary duties to consider interests of all stakeholders B Corporations fill that gap. It’s like fair trade, but for the whole company. B Corp certification provides proof that a company is living it’s values Patagonia First to register as a CA benefit corp

Certified B Corps as of 2015

1600+ Certified B Corps

1/3 of Certified B Corps are Global United Kingdom Canada Germany Mongolia USA India Mexico South Korea Nicaragua Kenya Colombia Brazil Australia Argentina Chile

Subsidiaries as Certified B Corps

The Value of B Corp Certification Differentiate your company through leadership in a global movement Support tangible commitment to mission & values as central to business Support trust among consumers/customers Generate positive media exposure Feature in regional & national ad campaigns Benchmark & report on performance Engage employees & recruit quality talent Benefit from services & discounts Build partnerships in a supportive, like minded B Corp community

Certified Companies, Assessment Scores are Transparent www Certified Companies, Assessment Scores are Transparent www.bcorporation.net meeting most rigorous transparency standards, building trust = brand equity Microgrid

31 States Passed Benefit Corp. Legislation New Hampshire and Minnesota are the two that passed and should be red. 1,600+ B Corporations 38 Countries 121 Industries 1 Unifying Goal

Your Purpose

The B Corp Movement People Using Business as a Force for Good

So that one day all companies compete to be Best for the World B Lab is serving a global movement of People Using Business as a Force for Good So that one day all companies compete to be Best for the World Why? Gov’t and np are necessary but insufficient. Business is most powerful tool; Purpose I most powerful motivator. And society enjoys a shared and durable prosperity.