B-Corps and the Future of Capitalism

B-Corps and the Future of Capitalism

Capitalism is coming under increased scrutiny in the United States, particularly in the context of Covid-19 and the ongoing protests surrounding racial justice issues, to say nothing of climate change | Learn more on Commonshare |. There is a growing consensus that corporations must do more than meet the needs of shareholders: they must also answer to stakeholders, including employees, customers, and the communities in which they operate.
——————————–
B Lab and Stakeholder Capitalism
——————————–
In keeping with this change toward stakeholder capitalism, global nonprofit B Lab announced an important step in the transition: six publicly-traded global multinational companies are committing to work together to more deeply embed stakeholder | Learn more on Commonshare | governance and accountability into their business models.
These firms, however, are all European or South American, not U.S. firms.
————————-
B Corps and Certification
————————-
B Corps are companies that are certified for environmental | Learn more on Commonshare | and social performance. To date there are about 3,500 of these in existence, in over 70 countries and 150 industries. Most of these are small- to mid-sized firms, including Patagonia, Seventh Generation, and Ben & Jerry’s.
B Lab recently created a certification process for large companies, but the organizational and financial complexity of these entities makes certification particularly challenging for them.
——————————
The B Movement Builder Program
——————————
This is where the B Movement Builder program comes in. It provides a pathway for these companies to make step-by-step changes, introducing more social and environmental programs into their operations. This can help them to make progress over time in ways that are more feasible for them.
The movement is also designed to help companies identify goals that are connected to the UN Sustainable Development Goals (SDGs). The program is designed to create a network of peers that collectively work together to achieve common goals and help each other learn to be more sustainable.
The First Cohort
—————-
The B Movement Builder’s first cohort of firms includes Bonduelle, a vegetable processing company based in France, as well as Givaudan, a flavors and fragrance company based in Switzerland, and retailer Magalu and steelmaker Gerdau, based in Brazil. The cohort also includes food products company Danone, based in France, which has committed to become a B Corp by 2025. Finally, it includes beauty company Natura, which is a publicly traded B Corp.
In all, these companies have between them revenues of $60 billion and 250,000 employees.

Leave a Reply

Your email address will not be published. Required fields are marked *