In a tidal wave of green business, today’s educated consumer can deliver massive impact by supporting the right companies.
In the book, “Good Is the New Cool: Market Like You Give a Damn”, Afdhel Aziz and Bobby Jones show why corporations that are mission-driven, and guided by purpose, are often times the most dominant in their space.
Examples:
Good + Cool = Tesla, Patagonia, Warby Parker, Toms, Method, Honest…
The proof is in the pudding… or *Marmite*… in Unilever’s case
The success of Unilever’s 28 purpose-led brands is undeniable:
- In 2019, Unilever’s Sustainable Living Brands grew 69% faster than the rest of their business and delivered 75% of the company’s growth
- “Seven of Unilever’s top ten brands – Dove, Knorr, Omo/Persil, Rexona/Sure, Lipton, Hellmann’s and Wall’s ice cream – are all Sustainable Living Brands”
From the top-down, Unilever has been a long time champion of purpose-led and climate conscious business. As former Unilever CEO, Paul Polman, stated: “CEOs play a key role for tackling climate change and the entire sustainability agenda”.
#Trending
Nielsen studies show that today’s consumer is 55% more likely to support companies that are committed to positive environmental and social impact.
Feeling this rhythm like a Jamaican bobsled team, the corporate world is signaling terms like “ESG” and “CSR” as if they’re going out of style.
Break it down:
- Corporate social responsibility (CSR): A self-regulating business model that helps a company be accountable for its impacts: socially; economically; and environmentally.
- Environmental, social and governance (ESG): A set of standards for a company’s operations that socially conscious investors use to screen potential investments.
Key to note:
- CSR and ESG are mostly self-created and self-regulated principles within a company’s business model
- Oftentimes lack any kind of independent verification
So you’re “Verified”, huh?
A key principle within successful companies in “Good is The New Cool” is “Back up the promise with the proof”.
Following today’s social media hierarchy, if there’s no blue check mark, next to the name – then it’s not news. In an economy where “greenwashing” is unfortunately taking place, the conscious consumer must also be an educated consumer.
If these growing CSR claims are not verified, how does the consumer really know what they’re supporting?
Without delving into the absurdity behind the enshrinement of a little blue check mark, there is something to be said for having independent verification when it comes to ESG and CSR. This is certainly true for the consumer who wants to support a greater purpose. Especially when this support can often come at a premium.
Enter B Corporation… “B Corp”
When it comes to being certified as a positive impact business, the B Corp certification is… kind of a big deal…. like Ariana Grande’s IG verified status-big deal
Through B Corp’s intensive and holistic B Impact Assessment (BIA), they provide third-party verification of a company’s CSR and ESR initiatives. For the consumer, this B Corp “check-mark” is immensely important in today’s tidal wave of green business initiatives. When the consumer sees the B Corp stamp, they know that the product they’re holding comes from a business that meets “the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose.”
B Corp Breakdown:
What is it?
The only independent certification process that measures a company’s entire social and environmental performance.
Who’s in?
- 3,327 Companies
- 150 Industries
- 71 Countries
What’s the goal?
B Corporation allows companies to become independently verified as “accelerating a global culture shift to redefine success in business and build a more inclusive and sustainable economy”.
The B Impact Assessment evaluates a company’s:
- Operations and business models impact to; workers; community; environment; customers
- e.g., Even the amount of maternity / paternity leave offered to employees affects the BIA score
- Governance structure
- Holistic supply chain and input material analysis
- Charitable giving and employee benefits
What’s the cost?
- Tiered fee structure based on company’s annual sales: ranging from annual fee of $1,000 (<$150K sales) to $50,000 ($750MM-999.9M sales)
- Certified B Corporations are legally required to consider the impact of their decisions on all their stakeholders.
To Pass:
- Companies must score +80 points on BIA
- Sign legally commitment to ensure transparency and accountability for the companies social and environmental impacts; ensures that the mission can survive over time
Re-certification:
- Every 3 years
What does the B Corp Certification provide?
- Distinguishes the business from others in its field as meeting the highest standards of verified performance… i.e., “@ArianeGrande” status or …. “@Arianee_Grandee_14” status
- Offer collaborative resources for certified -and aspiring- B Corps to continue to improve upon their CSR practices and improve B Impact Assessment scores
- e.g., recommendations for improving supply chain efficiencies and social impacts.
- Expands opportunities to promote and advertise a company’s corporate responsibility as a competitive advantage to the increasingly conscious consumer.
As seen, these costs – time, energy and financial- are not cheap. However, companies are becoming increasingly aware that setting themselves apart -as a driver for good- is now a competitive advantage. As our economies continue to foster these sustainable businesses, it becomes more important for the customer to understand where our money is truly going.
We only visit the ballot box every four years, but our wallets vote every day. Seeing that B Corp label can make sure it counts.
Mintly Recs: To learn more about the B Corporation and the certification process, check out the B Corp Library. Here you’ll find a ton of great case studies that highlight the companies you know and love, and their B Corp journeys.