What exactly is a certified B Corporation?
That is a great question. One that, as the newly hired Manager of B Corporation and Social Impact Metrics at MaRS, I am all too eager to answer.
Certified B Corporations are “a new type of corporation which uses the power of business to solve social and environmental problems.” To receive certification, companies must meet high quality and independent standards of social and environmental performance including the following: Accountability, Employees, Consumers, Community and Environment. This certification, based on a points system, is provided through B Lab, a nonprofit dedicated to supporting this growing ecosystem of companies creating good.
This “new” type of corporation addresses the fact that while government and nonprofit services are necessary, they are not sufficient to tackle the overwhelming social and environmental issues we face. These values-based companies are striking a chord with conscious consumers and investors looking to make an impact with their capital. However, today, where the benefit of the doubt cannot simply be given, how can one be sure that a corporation has embedded such values into their culture as opposed to having just another heart-tugging marketing campaign?
A third party and reliable standard must exist. The B Corp certification provides the stamp that says, “this company considers its stakeholders in all its business and adheres to high social and environmental standards” just like a Fair Trade stamp says, “this product was made using fair practices”. Unlike the Fair Trade stamp, B Corp certification goes beyond a product or a practice; accounting for the entire company and it’s impacts.
As of this post, there are over 460 Certified B Corps in North America with $2.2 Billion in revenues. To see this certification in Canadian action, I draw you to two examples: Hypenotic and DIRTT.
Hypenotic is a Toronto based communications design firm with values driven clients. They focus on meaningful marketing by helping brands doing good things become relevant and useful. They scored high marks on Community, with their involvement with local stakeholders. This is demonstrated in their ownership, clients, suppliers, and employees. They also scored high in Accountability, specifically in the transparency of their company information and disclosure. I met them only last week and can already attest to their intense dedication to their mission.
On the western side of Canada is DIRTT Environment Solutions. They manufacture pre-engineered modular walls as an alternative to conventional stud and dry wall construction. This means less initial material waste, a shorter construction time and more efficient layouts to solve space issues without acquiring more real estate. They scored highest in the area of Accountability including being transparent with information as well as having an excellent governance structure. They also scored high marks for Environment specifically with their facilities which include the largest solar array in Calgary and the first corporate wind turbine.
As announced last week, MaRS will be launching a Centre for Impact Investing (CII). We are actively seeking to build a new Canadian economy of social businesses, mobilizing private capital for public good. We see B corps playing an essential role in building this economy and have formed a unique partnership with B Lab to create the Canadian B Corporation Hub right here at MaRS.
The aim of this Hub is to:
- support the current Canadian B Corporation community;
- advocate for relevant legislative change in the provinces starting with Ontario;
- support the growth and development of social impact metrics (ie. GIIRS).
What impact would a B Corp have on you? How would your company perform? Take the B Impact Assessment to find out.
For more information on how to become part of the Canada B Corp community you can visit www.bcorporation.net or email me at jsou@marsdd.com. I am extremely excited to be a part of this new team and greater community and look forward to continuing in some great dialogue with you all.
