How B-Corporations are leading the economy of meaning
Reckless corporate behavior over the last decade with negative social and environmental consequences has led to the movement of B Corporations (B = Benefit). They are defined as a new kind of business that balances purpose and profit. They are legally required to consider the impact of their decisions on their employees, customers, suppliers, community, and the environment. They consider themselves a global community of leaders using business as a force for good. The community already counts 10,000 companies across 150 industries in over 65 countries - which is an impressive achievement.
Prominent examples are Patagonia, Ben & Jerry’s, Allbirds and Kickstarter.
Patagonia was the first California company to sign up for a B certification in 2012. It imposed an earth tax on itself and every year has been giving 100% of their Black Friday profits to grassroots organizations working to protect air, water, and soil quality for future generations. Patagonia is “in business to save our home planet”. Since 1985, the company has donated over $89 million to environmental work. In 2019 it was named a UN Champion of the Earth, a top environmental honor, for its entrepreneurial vision.
Ben & Jerry’s mission is “to make the best product they can, be economically sustainable, and at the same time, create positive social change – specifically to advance new models of economic justice that are both sustainable and replicable”. From a product perspective it only works with family farmers who do not treat their cows with the synthetic hormone rBGH. From a philosophical standpoint it aims to eliminate injustices in local, national and international communities and is supporting non-violent initiatives that seek to achieve peace.
Allbirds is dedicated to “making the most sustainable footwear they can - shoes people feel good in and good about - using the world’s best natural materials”. Their sneakers and loungers are made from moisture-wicking, temperature-regulating, odor-resistant merino wool that is ZQ-certified (meaning it meets stringent standards for sustainable farming and animal welfare) and uses 60% less energy than synthetics. It has recently released flip-flops made from the first carbon-negative EVA foam ever developed and has openly encouraged its competitors to adopt their materials.
Finally, Kickstarter is “focused on serving artists, creators, and audiences to help bring creative projects to life”. It is the world’s largest funding community for everything from films, games, restaurants, and music to art, design, and technology. Since its launch in 2009, 7.5 million people have pledged $1.5 billion, funding more than 75,000 efforts. Kickstarter believes that creative projects make for a better world, and is thrilled to help support new ones. They are also committed to donating 5% of their annual post-tax profits to arts education and organizations fighting inequality.
All the above brands have explored and re-evaluated their categories, business models, supply chains and marketing mixes to be more in line with their corporate values - coined by their founders. By becoming B Corporations they have committed to new standards of behavior and are fearlessly pursuing those every year to prove to themselves and all their stakeholders, not just shareholders, that they create public benefit.
They all believe that:
We must be the change we seek in the world.
All business ought to be conducted as if people and place mattered.
Through their products, practices, and profits, businesses should aspire to do no harm and benefit all.
To do so requires that we act with the understanding that we are each dependent upon another and thus responsible for each other and future generations.
They lead what we call the economy of meaning, a system of meaningful business behaviors and brand collaborations tapping into consumers, causes and creators as inspiration and drivers of positive change.