In recent years, a quiet revolution has been taking place in the business world. The rise of Certified B Corps and Benefit Corporations, championed by the non-profit B Lab, is reshaping how we think about the role of business in society. This “For Good Movement” isn’t just changing individual companies; it’s building market momentum for a new economic paradigm that aligns closely with the principles of design economics.
Let’s explore how B Corps and Benefit Corporations embody the three tenets of design economics:
1. Acknowledging the Evolution of Human Cultural Systems
The B Corp movement recognizes that our economic systems must evolve to address contemporary challenges. Traditional corporate structures, focused solely on maximizing extremely short-term shareholder value, are increasingly seen as inadequate for sustaining social and environmental capital.
B Corps and Benefit Corporations represent an evolution in business models. They legally and voluntarily commit to considering the impact of their decisions on workers, customers, suppliers, community, and the environment. This shift acknowledges that businesses operate within broader social and environmental contexts, and that these contexts are constantly changing.
For instance, Patagonia, a well-known B Corp, has made environmental sustainability central to its business model. Its “Worn Wear” program, which repairs and resells used Patagonia gear, is a direct response to the growing awareness of the environmental impact of fast fashion.
2. Embracing Inclusive, Interdisciplinary Approaches
The B Corp certification process embodies an inclusive, interdisciplinary approach. To become certified, companies must undergo a rigorous assessment that examines their entire operation, from supply chain practices to employee benefits, community engagement to environmental impact.
This holistic evaluation encourages businesses to think beyond traditional financial metrics and consider a broader range of stakeholders. It requires companies to draw insights from various disciplines, including environmental science, sociology, and ethics.
Take Seventh Generation, a B Corp that produces household and personal care products. Their approach to product development integrates chemistry, environmental science, and consumer behavior research to create effective, eco-friendly products that meet real consumer needs.
3. Promoting Economic Literacy
B Lab, the organization behind B Corps and Benefit Corporations, plays a crucial role in promoting economic literacy. They provide resources and tools that help businesses and consumers understand the impact of their economic decisions.
The B Impact Assessment, freely available online, allows any company to measure its social and environmental impact. This tool not only helps businesses improve their practices but also educates stakeholders about the various ways companies can create positive impact.
Moreover, the transparency required of B Corps – they must publish their impact reports – contributes to public understanding of business practices and their consequences. This increased economic literacy empowers consumers to make more informed choices and drives public discourse about the role of business in society.
Building Market Momentum
The B Corp and Benefit Corporation movement is rapidly gaining traction. As of 2023, there are over 6,000 Certified B Corps across 80 countries and 150 industries. Major companies like Ben & Jerry’s, Danone North America, and The Body Shop have joined the movement, signaling its growing mainstream acceptance.
This momentum is creating a virtuous cycle. As more companies adopt these practices, it becomes increasingly difficult for others to ignore their social and environmental responsibilities. Consumers, especially younger generations, are showing a preference for brands that align with their values, further driving the shift.
The “For Good Movement” represented by B Corps and Benefit Corporations is more than just a trend; it’s a reimagining of the purpose of business. By aligning closely with the tenets of design economics, this movement is helping to create a more adaptive, inclusive, and sustainable economic system.
As we face the complex challenges of the 21st century, movements like this offer hope. They demonstrate that it’s possible to do well by doing good, and that by designing our economic systems thoughtfully, we can create a world that works better for all.
Prompt: Vinny Tafuro | Composed: Claude 3.5 Sonnet | Edited: Vinny Tafuro
Photo by Irina Iriser on Unsplash