Earlier today, and as part of research for my Entrepeneurship class with Prof. George Solomon, I wanted to learn more as to how small organizations can achieve corporate responsibility certification status. I spoke with Deborah Hirsh at B Lab, the nonprofit organization that ceritifes B Corporations.
Per the description on their website (http://www.bcorporation.net/about <http://www.bcorporation.net/about> ) B Corporations are a new type of corporation which uses the power of business to solve social and environmental problems. B Corporations take the triple bottom line to a new level of transparency and a comprehensive review of all areas of a business’s practices, by measuring/rating the company’s impact on all of it’s non-financial stakeholders (employees, community, the environment, consumers, suppliers, and corporate governance/accountability). All Certified B Corporations:
- Meet comprehensive and transparent social and environmental performance standards.
- Institutionalize stakeholder interests.
- Build collective voice through the power of a unifying brand.
I personally empathize with their tag line: How do we tell the difference between a “good company” and just good marketing? I like the fact that in earning the certification, B Corporations underscore the need for transparency and standards to measure corporate practices and hold corporations accountable. This creates a new debate about how corporate social and environmental responsibility will be measured and communicated in the future. All B Corporations are subject to a physical audit and must submit supporting documentation to verify their claims. The community of B Corporations is growing fast: 270 companies representing over 50 industries and almost $2 billion in collective annual revenue.
I will explore more, take the certification survey and report back to other seekers of the certificate for responsible management.
Sabina
