What is a B Corp and Why Should You Care?

Do you believe that businesses can be a force for good? That’s the mission of B Corps.

What Are B Corps?

Definition: B Corps, with "B" standing for "Benefit for all," are companies that meet high standards of social and environmental performance, accountability, and transparency. These businesses prioritize creating positive impacts on society and the environment alongside generating profit.

While B Corps and Benefit Corporations are related, they are not the same. Benefit Corporations are a legal structure that allows companies to consider their social and environmental impact in addition to financial returns. However, not all states, including Michigan, allow the formation of Benefit Corporations. On the other hand, B Corps are certified by a third-party organization, B Lab, and can operate in any state.

Challenging Shareholder Primacy: Traditionally, corporations operate under the principle of shareholder primacy, where maximizing shareholder value is the primary goal. B Corps challenge this by integrating social and environmental responsibilities into their core business strategies.

Examples: Well-known brands like Patagonia, Ben & Jerry's, and Allbirds are B Corps, dedicated to making a positive impact on the world. They are part of a growing movement—there are now over 8,000 certified B Corps in more than 100 countries, all striving to do business in a way that benefits everyone.

Why B Corps Matter

Social and Environmental Impact: B Corps are committed to balancing profit with purpose. They focus on the well-being of the planet, their workers, and their communities. Their business practices often include initiatives like reducing carbon emissions, ensuring ethical supply chains, and paying fair wages.

Research indicates that B Corps are twice as likely to be carbon-neutral and to pay all employees a living wage compared to traditional companies. Additionally, the average pay ratio within B Corps is 7:1—meaning that the highest-paid employee earns seven times what the lowest-paid employee does, compared to a typical ratio of 25:1 in non-B Corp companies. This equitable distribution of income underscores their commitment to fairness and social responsibility.

Consumer Influence: As consumers, we have the power to drive positive change in business practices worldwide. By supporting B Corps, you’re not just purchasing a product—you’re endorsing a company’s commitment to doing good.

How You Can Support B Corps

Buy from B Corps: Look for the B Corp certification label when shopping. Your purchase supports businesses making a positive difference, whether it’s in clothing, food, or household products.

Spread the Word: Share your favorite B Corps on social media or with friends. Word of mouth is a powerful tool in raising awareness and encouraging others to make conscious choices in their purchases.

Invest with Purpose: If you’re an investor, consider supporting B Corps or funds that prioritize social responsibility. Aligning your investments with your values helps foster the growth and success of companies dedicated to making a positive impact.

Let’s support companies that care about more than just profits. Together, we can make a significant difference.