B Corps – A Movement to Redefine Success in Business

Written by Lucy Soto and Janece Shaffer Wednesday, February 08 2012

There is growing momentum around a new kind of business model that taps into the growing consciousness in the for-profit sector and will expand our idea of “good business.” The B Corp vision is simple yet ambitious: to create a new sector of the economy that uses the power of business to solve social and environmental problems.

“Governments and nonprofits are necessary but insufficient to solve today’s most pressing problems,” says Jay Coen Gilbert, who co-founded the nonprofit B Lab with Andrew Kassoy and Bart Houlahan in 2007. Gilbert continues, ”Business is the most powerful force on the planet and can be a positive instrument for change.”

B Lab is the Philadelphia-based nonprofit that gives its stamp of approval to socially and environmentally-focused businesses the same way TransFair certifies Fair Trade coffee or the U.S. Green Building Council certifies LEED buildings. Thus far B Lab has given its Certified B Corporation stamp of approval to more than 500 companies - corporations and LLCs - that boast $2.9 billion in revenue and span some 60 industries covering everything from catering and jewelry makers to insurance companies and construction firms.

“I hope that five years from now, 10 years from now, we’ll look back and say this was the start of the revolution. The existing paradigm isn’t working anymore — this is the future,” says Yvon Chouinard, founder and CEO of outdoor clothing company Patagonia, a B Corp.

In addition to growing a community of like-minded businesses, legislation is a key B Lab objective. So far, seven states have recognized benefit corporations as a new legal structure, including Maryland, Vermont, New Jersey, Virginia, California, Hawaii and New York. The hope is that continued momentum will make B Corporations a new legally recognized corporate form, like a C Corp or an S Corp.

Andrew Kassoy adds, “Benefit Corporation legislation represents a critical innovation in corporate form that both brings us back to the original concept of the corporation in the United States – limited liability in return for public benefit - and pushes us forward to market-based solutions that support investors and entrepreneurs who want to make money and make a difference.”

Like any other type of corporation, a B Corp does focus on its financial returns, but unlike traditional businesses, it also focuses on making a positive difference in the world around it. B Corps acknowledge a responsibility to multiple stakeholders - not only their employees, suppliers and consumers but also the broader community and the environment.

To gain B Corporation status companies must participate in a rigorous standardized assessment process. They submit to an interview and take an extensive survey. Answers are graded on a point system, and companies that score better than 80 out of a possible 200 can become certified B Corporations.

Another benefit of the B Corp certification is that it allows consumers and investors to better distinguish "good companies" from "good marketing" and support organizations that are genuinely committed to greater economic and social opportunity and achieving positive environmental outcomes.

There is growing interest in B Corporations from many sectors, including higher education. Emory University’s Goizueta Business School will host two days of roundtables and focus sessions on Feb. 7 and 8 called “The Promise of the B Corporation in Georgia.” It will feature a keynote speech by B Lab co-founder Jay Coen Gilbert.

There are currently five companies in Georgia that are certified B Corps and the most recent to earn the certification is Womenetics. Each certified B Corp is working to “move the needle” on a social or environmental issue, and Womenetics is committed to the advancement of women in business.

Womenetics Founder and CEO Elisabeth Marchant explains, “Gender equality is the economic issue of the 21st century. Having women in the top ranks of business leadership is not about a big group hug for women, but it is an economic imperative for a better bottom line for all of us.”

She continues, “Women’s full engagement is critical for economic prosperity and positive change. The ripple effect promises to be tremendous if we make concerted progress toward that goal.”

In terms of B Corporation legislation in Georgia, Stites Harbison attorney Jeff Woodward is working on a draft he hopes will be introduced in the 2013 Georgia General Assembly. He says having a law would make Georgia more competitive and place it as a leader in innovation.

“The sustainable business movement, impact investment market and the social enterprise sector are all growing out West and in the Northeast,” says Woodward, who represents many social venture companies.

“Georgia is the natural leader in the South. We are already home to one of the largest and storied social ventures - Better World Books, which is also a founding B Corporation. Gray Ghost Ventures, led by Atlanta visionary Bob Pattillo, is one of the world’s leaders in international micro-finance and a B Corporation,” says Woodward.

Setting up a legal and legislative framework to address the needs of entrepreneurs, their investors and, Woodward says, the public, will bolster current companies and encourage the creation of new ones.

“This will bring jobs and much needed second-stage funding to Georgia companies, which are otherwise leaving in great numbers to seek more friendly business environments,” says Woodward.

For some, B Lab’s effort to incorporate CSR strategies directly into business strategy may seem new but for many, like Marchant at Womenetics, “These are things we have been doing since the beginning because it was part of our DNA.”

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Lucy Soto worked as a reporter for the Atlanta Journal Constitution for nearly a decade. Before that she worked for the Associated Press. Born in Medellin, Colombia, she grew up in Greenville, S.C., and now chases after her four children in Atlanta.





Janece Shaffer, senior editor of Womenetics, is also an award-winning, professionally produced playwright. Her plays have been produced in theatres across the country including the Asolo Repertory Theatre, Alliance Theatre, and Taproot Theatre. She also has more than two decades of experience in the communications field and has held communications positions at Emory University, The NAMES Project Foundation/AIDS Memorial Quilt and the Alliance Theatre. Shaffer holds a bachelor’s degree in journalism from the University of Georgia and a master’s degree in communications from Georgia State University.