B Corps and Benefit Corporations: Redefining Business Success

In today’s business landscape, success is often solely measured by financial gain and stock market performance. However, there is a growing movement of companies that are redefining what it means to be successful in business. B Corps and benefit corporations are two emerging models that prioritize not only profit, but also social and environmental impact. These businesses are challenging the traditional notion of success and proving that doing good can also be good for business.

What are B Corps and Benefit Corporations?

B Corps, short for “Benefit Corporations,” are a type of business structure that places equal importance on social and environmental impact as on financial performance. B Corps must meet rigorous standards set by the non-profit organization, B Lab, which assess a company’s impact on its employees, community, and the environment. B Corps are legally required to consider the interests of all stakeholders, not just shareholders, in their decision making process.

Benefit Corporations, on the other hand, are a legal status available in certain states in the United States. This structure is similar to B Corps in that it requires a company to consider the impact on all stakeholders, but it may not be held to the same standards and assessment process as B Corps.

The Business Case for Being a B Corp or Benefit Corporation

While the primary goal of B Corps and Benefit Corporations is to have a positive impact on society and the environment, there are also tangible benefits for businesses that choose these models. Studies have shown that consumers are increasingly seeking out and willing to pay more for products and services from socially responsible companies. In fact, the 2017 Cone Communications CSR Study revealed that 87% of consumers would purchase a product because a company advocated for an issue they cared about. This means that adopting a B Corp or Benefit Corporation model can not only attract more customers, but also increase customer loyalty and enhance brand reputation.

In addition, B Corps and Benefit Corporations often have a competitive edge when it comes to attracting top talent. In today’s job market, employees want to work for companies that align with their values and have a positive impact on the world. B Corps and Benefit Corporations not only attract socially conscious employees, but also have higher retention rates compared to traditional businesses.

Redefining Success in Business

The concept of success in business has traditionally been equated with financial gain. However, B Corps and Benefit Corporations are challenging this narrow definition and proving that there are other measures of success. These companies are redefining business success by showing that it is possible to have a profitable business while also making a positive impact on society and the environment.

As more and more companies adopt this model, the definition of success in business is shifting to include considerations of purpose, people, and planet. This is not only beneficial for the greater good, but also for the long-term sustainability and success of businesses.

In Conclusion

B Corps and Benefit Corporations are redefining what it means to be a successful business in today’s society. By prioritizing social and environmental impact alongside profit, these companies are not only making a positive difference in the world, but also attracting customers and top talent. As more businesses adopt this model, we can expect to see a fundamental shift in the way success is measured in the business world.

If you are a business owner, consider incorporating socially responsible practices into your business or even becoming a B Corp or Benefit Corporation. And as consumers, let’s support and advocate for these businesses that are redefining business success and making a positive impact on our world.