March 28, 2021
Do you know of any companies that are certified B-corp? Have you ever bought an item from a company that was certified B-corp? If you answered yes to both questions you might see a rise in corporations who certified B-corp. In 70 countries in the past 5 years, the number of certified B-corp companies has tripled to 3,500. Certified b-corp is a certification a corporation can achieve through their approach to the Triple Bottom Line for people, planet, and prosperity for a socially responsible company. Studies have found that younger generations are demanding more of their companies. A survey found that 80% of their respondents say it is important for them to pick brands that align with social values. 57% are millennials and Gen Z with 31% as baby boomers. Companies are listening. Business and Society and intrinsically linked therefore stakeholder engagement is important, especially when employees and customers make up the largest percentage of the stakeholder’s direct impact on the company. Purpose-driven companies satisfy the employees, customers, and society. AERA, a luxury footwear companies claims that the mission is to make a positive impact to show how luxury shoes do not have to be compromised in the name of sustainability and ethics. B corp certification benefits the employee through communication.” The employees are part of the stakeholder approach and the way they interact with the customers and community can broaden the reach of a company’s mission and purpose.” Companies that are purpose-driven have amazing employee culture and commitment to working in the companies. Millennials and Gen Z employees look to work for companies that demonstrate business for a purpose beyond profits. Consumers want transparency and social purposes demonstrated. In the same survey, over 90% of Gen Z respondents believe companies must act on social and environmental issues. AREA has changed to be 110% responsible for giving back to the earth to provide scientific measurements to do so and transparency to share this information to the consumer. I believe that this change to B-corp certified is due to stakeholder engagement. Customers and employees want sustainability not only, environmentally, but socially and economically. I would want b-corp to be a requirement by law in the U.S. to which many disagree.