The Certified B Corporation

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Nickolas Elliott
6 years ago
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1 The Certified B Corporation Building and Scaling Solutions for Change

The Vision Building a new sector of the economy Creates economic opportunity Strengthens communities Restores environment Alleviates poverty Legal Clean Tech Food Hospitality Private Equity Wealth

2 The Vision Building a new sector of the economy Creates economic opportunity Strengthens communities Restores environment Alleviates poverty Legal Clean Tech Food Hospitality Private Equity Wealth Managemt Home Apparel Education Building Industry Retail Architecture Restaurant Arts Telecom Media PR Comm Consulting Developing World Banks Real Estate Footwear Marketing Renewable Energy IT Biotechnology Personal Care Pharmaceuticals B2B B2C

3 The Trend 60 million conscious consumers $2.7 trillion available from socially responsible investors 100,000+ social entrepreneurs and sustainable businesses The Problem Current corporate law works against sustainability and social impact No standards to distinguish good companies from good marketing The Opportunity 20 th Century 21 st Century Shareholder corporation Stakeholder Corporations (maximizes shareholder value) (creates social and shareholder value) The Need Support high-impact entrepreneurs

4 What is B Lab doing? B Lab is a nonprofit organization that supports the world s leading entrepreneurs using business to solve social problems Shine a Light on the Entrepreneur (Certified B Corporations) Remove legal impediments for the Entrepreneur (Benefit Corporation) Drive capital to the Entrepreneur (Impact Investing/GIIRS)

5 What is a Certified B Corporation? Meet independent, comprehensive and transparent standards of social and environmental performance Meet higher standards of transparency Meet higher legal standards of accountability

6 Certified B Corp Performance Standards B Impact Assessment is a comprehensive assessment of overall social and environmental performance Workers Job Growth Compensation & Benefits Work Environment Employee Ownership + Social Enterprise Business Models Beneficial Products/Services Targeting Underserved Communities Beneficial Supply Chain Community Suppliers Local Diversity Charity/Volunteerism Environment Energy Use Facilities Supply Chain Manufacturing Must earn 80 of 200 available points Must be verified w/ random on site audit Must retake assessment bianually

7 Certified B Corp Performance Standards 1) Free online tool 2) Changes based on type and size of company 3) Comparable impact reports 4) Recognition for impact areaspecific certifications (ex. Cradle to Cradle) 5) Includes benchmarking and improvement tools 6) Over 6000 current users

8 Certified B Corp Transparency Standards Must make B Impact Report public on

9 Certified B Corps Accountability Standards Certified B Corps amend their bylaws giving shareholders additional rights requiring directors to: consider the impact of decisions not only on shareholders, but on all stakeholders

10 Who are the B Corporations? 600+ companies across 60 industries in 40 states and 5 countries

11 Who are the B Corporations? A growing community in renewable energy

12 What is the value of being a B Corp? Differentiate brand Maintain mission Save money Generate press Lead a Movement Build business Improve and benchmark performance

13 Benefits of B: Differentiate Your Company To Consumers: Set Yourself Apart 73% of consumers are looking at the company behind the product <1% of consumers trust what companies say about themselves B Corporation Certification closes the trust gap

14 Benefits of B: Differentiate Your Company To Consumers: Set Yourself Apart A Different Kind of Company

15 Benefits of B: Differentiate Your Company To Consumers: B Corp Collaborative Brand Campaign Partners: Ogden Publications (Mother Earth News, Natural Home, Herb Companion, Utne Reader) Care2.com, Sustainable Industries

16 Benefits of B: Generate Press To the Media 467 press hits in 2012 YTD 189 B Corps mentioned

money through certification Current partners include Salesforce.

17 Benefits of B: Save Money $57K annually est. The Business Case 50+ B Corps saving combined $1,100,000 annually through 40 Service Partners 25% make money through certification Current partners include Salesforce.com, Intuit, NetSuite, Yale SOM, Nexternal, etc. $60K savings/donations est. $17K sales/500k new leads Trust Provider Free Banner Ads Social Entrepreneur Winner Webinar: Green Consumer Facilitated network Recruiting *

18 Benefits of B: Collaborate with Aligned Peers Through hundreds of B2B introductions every year....and our annual national gathering. 2010: Long Branch, NJ 2011: Philadelphia, PA 2012: Marin County, CA Over 130 members of B Corp leadership gathered in Philadelphia, PA for the annual Champions Retreat

19 What is the value of being a B Corp? Differentiate brand Maintain mission Save money Generate press Lead a Movement Build business Improve and benchmark performance

20 What is B Lab doing? B Lab is a nonprofit organization that supports the world s leading entrepreneurs using business to solve social problems Shine a Light on the Entrepreneur (Certified B Corporations) Remove legal impediments for the Entrepreneur (Benefit Corporation) Drive capital to the Entrepreneur (Impact Investing/GIIRS)

21 Initiative 2: New Corporate Form We won t have a new economy without a new kind of corporation to do business a different way 20 th Century 21 st Century Shareholder capitalism Stakeholder capitalism Maximize shareholder value exclusively Create social and shareholder value simultaneously

22 Initiative 2: Benefit Corporation Legislation Key Provisions: Purpose The most original, constructive thought in corporate governance in 25 years. Former President, American Bar Association to create material positive impact on society and the environment Accountability directors and officers shall consider effect of decisions on stakeholders Transparency publish annual report in accordance with a third party standard

23 Initiative 2: Benefit Corporations Eleven Enacted (CA, HI, IL, LA, MA, MD, NJ, NY, SC, VT, VA) Two Almost there! (DC, PA) More in Queue Floor Votes: In Support: 1518 In Opposition: 137 Why? 100% voluntary No regulations No cost Market-based

24 What is B Lab doing? B Lab is a nonprofit organization that supports the world s leading entrepreneurs using business to solve social problems Shine a Light on the Entrepreneur (Certified B Corporations) Remove legal impediments for the Entrepreneur (Benefit Corporation) Drive capital to the Entrepreneur (Impact Investing/GIIRS)

25 Initiative 3:GIIRS A Big Opportunity with Big Challenges All Investing $61.9 Trillion Impact Investments seek and measure impact as well as financial return SRI Investing $2.7 Trillion Barriers to growth Lack of standards & data High transaction costs Impact Investing in 10 years $1 Trillion Lack of compelling product Source: J.P. Morgan

26 GIIRS: Driving Capital to Impact Morningstar and Capital IQ for impact 50 Pioneer Funds; 300 Pioneer Companies; 30 countries More than 20 Pioneer Investors declare investment preference $3 billion marketplace

27 The Vision Continued Support a global movement of entrepreneurs, investors, and consumers with one unifying goal... Redefine success in business

28 The Vision Continued Best in for the world

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29 Thank you For your time Questions? Learn more:

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