In this 2009 Sustainable Brands presentation, we learn about the power that "B's" in B Corporations. What they are, why every business should gear up to become one, and how they are set on shaping the future of new enterprise and public policies.
The B Corporation: A New Kind of Company for a New Sector of the Economy
1. The B Corporation
A New Kind of Company
For a New Sector of the
Economy
The Certified B Corporation
2. Quick Background
B Lab is a nonprofit started by 3 businesspeople with successful 15 year
careers as Entrepreneurs, Operators, Investors
MSD Capital, L.P.
$250 MM Brand $13B Private Equity
3. What is a B Corporation?
The B Corporation is a new kind of company which uses the power of
business to solve social and environmental problems
- Meets higher standards of social and environmental
performance, accountability, and transparency
- Amplifies voice for a diverse marketplace
through the power of the unifying B Corporation brand
4. B Corporation – Performance Standards
B Ratings System
• Tool for impact assessment & improvement
– Comprehensive, transparent, and comparable
– Dynamic
– Independent governance (Standards Board)
• Not just for certification (i.e. 4,000+ registered users)
• Version 2.0, including industry addendums, in beta testing
5. B Corporation – Legal Standards
B Corporation Legal Framework
• Amends Articles to redefine ‘best interests’ to include
consideration of the impact of decisions not only on shareholders, but
also stakeholders
• Benefits
- protection for Directors to consider non-financial interests
- accountability to shareholders to uphold new definition
- survives new management, capital and ownership
- no additional liability to non-shareholders
• Developed by Jones Day, Linklaters, and Drinker Biddle to work within
existing corporate law
6. Why B Corps Matter
Standards provide leverage to move markets
Give Me a Place to Stand
And I Will Move the Earth
7. Why B Corps Matter - Accountability
Expand corporate accountability through new legal framework
20th Century 21st Century
Shareholder capitalism Stakeholder capitalism
Maximize Create
shareholder value social and shareholder value
exclusively simultaneously
8. Why B Corps Matter - Impact
Drive social impact through third party standards
Consumers Certified sustainable businesses
Investors Emerging asset class: Impact Investments
Policymakers Sustainable procurement/tax incentives
Companies Sustainable supply chains
9. Significant Momentum - Companies
Companies Diverse and growing community of leaders
Financial Services Consumer Products Business Services Outside U.S.
10. Significant Momentum - Marketplace
Marketplace emerging around standards
Companies Standards Partners
195 B Corps, 31 industries Salesforce, BALLE, BASE,
$1B revs, $6B assets WorldofGood/Ebay
Standards
Policymakers Media
State, Local, Federal PR + GOOD Business, Sust Ind, Care2
new corp form + incentives
Investors Due diligence, investment preferences,
social stock exchanges, GIIRS
11. Historic Opportunity
To create social impact through business and transform
corporate accountability
- Chorus of prominent voices
- Gates, Creative Capitalism
- Yunus, Social Business
- Blood&Gore, Friedman, Sustainable Economy
- Financial crisis
-
12. Seizing the Opportunity
B Lab builds infrastructure; B Corps define a marketplace.
Today Leading companies
3-5 Years Vibrant marketplace
In a generation New sector of the economy
13. Why become a B Corporation?
Influence public policy and capital markets
• Create a new corporate form
• Establish tax and procurement preferences
• Drive capital from SRI to Impact Investing
Support your business
• Save money ($600k in annual recurring savings)
• Maintain mission post capital raise, liquidity event, or succession
• Differentiate through third party certification
• Be in the company of recognized leaders
14. Thank you
‘What the outstanding person does, other will try to do.
The example he sets, will be followed by the whole world.’
- Gita
Notas do Editor
to drive public policy, capital and consumer markets
Salesforce, Net Suite, and Inspire Commerce along with 20 other service partners. Standards provide leverage to move markets. ‘What the outstanding person does, other try to do. The example he sets will be followed by the whole world’. - Bhagavad Gita