Using business as a force for good

Every year in March, since 2017, the global B Corporation community has joined forces to highlight the importance of using business as a force for good. CLIVE READ (pictured), head of Birmingham at law firm Shakespeare Martineau – part of legal and professional services group Ampa, which recently became a certified B Corporation – discusses the movement

It is difficult to overstate the importance of purpose in business. Profit may enable a business, but purpose is what drives it.

Historically, a business’ purpose has been to maximise shareholder value. However, the world is changing and more corporate governances are highlighting the importance of non-shareholding stakeholders, such as their people, local communities and the environment.

B Corporations are a product of this shift in values – redefining what it means to be successful in business and using their company as a force for good.

Organisations with certified B Corporation status are legally required to consider the impact of business decisions on their people, customers, suppliers, communities and the environment – ultimately ensuring a balance between purpose and profit.

Since its launch in 2007, more than 6,400 companies working in 161 industries across the globe have achieved the certification and as more leaders recognise that businesses need to play their role in driving societal and environmental change, the number of companies actively seeking B Corporation status is growing.

This rise is reflective of a sea change in society, and a focus on climate change and social good, with consumers demanding purpose-led businesses and employees wanting to work for companies with clear values.

We feel strongly about changing business for good by unlocking potential and, in January this year, we gained our B Corporation certification, which is a huge achievement for us and demonstrates our commitment to using business as a force for good for our people, planet, communities and clients.

Why become a B Corporation?

B Corporation is a high standard to achieve and a reflection on businesses truly balancing purpose and profit.

With recognition growing rapidly, more companies are looking to either become one or work with one, while conscious consumers are keen to support them. Furthermore it builds trust. Certification signals a commitment to transparency through publically publishing results. It shows clients and customers that the highest verified standards of social and environmental performance, public transparency and legal accountability have been met.

The younger workforce is increasingly demanding that business should improve society and B Corporation status is a shorthand indicator of intent. With the war on talent raging on, the accreditation will set businesses apart when it comes to attracting applicants who want more meaning in their careers. This will, in turn, help businesses to build a strong culture, improve employee engagement and retain top talent.

Part of the B Corporation certification process is identifying and shedding light on hidden areas that are in need of improvement when compared to peers. Benchmarking performance in this way can help to accelerate change.

The conventional wisdom when it comes to business is that there is a choice to be made between making money and doing ‘good’. This is, however, a false dichotomy. It is a misconception to say B Corporations have to stop being as profitable. Not only is it the right thing to do, but it forms part of a sustainable hardcore business strategy.

Our clients, people, stakeholders and communities are all asking questions surrounding social and environmental performance, transparency and accountability. B Corporation is a good way of making sure you are living up to society’s increasing standards, while also ensuring your business understands the impact its decisions and behaviours have on the planet, your people and the communities within which you work.

Becoming a B Corporation

To become a certified B Corporation, businesses must prove their sustainability credentials and demonstrate responsible attitudes to employees, suppliers, local communities, the environment, and governance.

The benchmarks to achieving accreditation are incredibly high and the auditing process is rigorous, with non-profit B-Lab independently scoring companies across governance, workers, community, environment and customers to determine the business’ social and environmental performance.

It is quite a daunting application process – businesses are required to score at least 80 out of 200 in an online, comprehensive questionnaire that explores every aspect of the organisation. Supporting documentation must also be submitted and companies also attend an interview with a local B-Lab to discuss and present evidence to reflect their business impact assessment results.

There are lots of certifications out there, but B Corporation is in a completely different league. In our experience, becoming a B Corporation isn’t about simply getting the accreditation – it is about testing yourself, holding yourself to account, and living and breathing being a true responsible business.

It is an intensive process and businesses that aren’t serious about becoming a B Corporation would find it a huge administrative burden.

We have found efficiencies by building B Corporation into the core of our business, and embedding B Corporation values within our commercial growth strategy and ensuring they are fully supported from the top-down.

For example, we have changed the way our reporting and data is recorded so it is aligned with the accreditation process. That way, when the time comes to recertify, it is in an easily accessible and retrievable format.

B Corporation has also been built into our decision-making process and we now consider what positive impact each choice will have on our environment, people and communities, alongside the financials.

It is easy to bring those tests in – if you take a merger, for example, you could argue that bringing a regional brand into our group supports the local community, having a larger house of brands saves on our carbon footprint because we can invest in more technology, and gives our people access to wider career development opportunities.

Looking ahead

The current number of B Corporation-certified businesses has no doubt grown drastically from the original 82 that were first designated in 2007. However, it is fair to say that despite its importance, the profile of the initiative isn’t as high as it should be outside of those in the know.

Take the Fairtrade logo as an example – most people would see this in their local supermarket and know growers are getting paid decently for their labours. But would the same knowledge apply when it comes to evidence of B Corporation registration?

Hence the dedication of March as B Corp month, which showcases that B Corporation is a fantastic way to get behind the global movement that aims to create an inclusive, equitable, and regenerative economy and society.

For us as a business, we also take great pride in using our experience of the process to help our clients achieve their sustainability goals and support them in securing their accreditation.

The pandemic has taught us the excuses of our previous paradigms are no longer valid. We must each create ripples to join into a wave of much-needed change – highlighting that good business can be both purposeful and profitable.

Ampa is a group of legal and professional services companies with a shared purpose – to unlock potential. Current brands within the group include full-service law firms for life and businesses Shakespeare Martineau and Mayo Wynne Baxter, consumer champion law firm Lime Solicitors, planning consultancy Marrons Planning, uninsured loss recovery experts Corclaim, cyber security consultancy CSS Assure, and strategic advisory consultancy Coadax.