Business as a Force for Good

March is Certified B Corp month, so let’s talk about the ongoing paradigm shift in the business world and how the triple bottom line philosophy of “people, planet and profit” is here to stay. More and more companies are realizing that they can have a social and environmental impact while also leveraging business as a force for good.

In 1970, Milton Friedman proclaimed that the social responsibility of a business is to increase its profits, prioritizing profit over other considerations. He argued against unions and any legal requirements for businesses to treat workers, consumers and society fairly. Fifty years later, in 2020, Fortune Magazine proclaimed his doctrine dead.

A paradigm shift had been underway for more than a decade. While corporations had previously embraced Friedman’s philosophy, they were now witnessing its negative consequences. As climate change, income inequality, and social injustice became more obvious, business leaders recognized the need to adapt and redefine their role.

Early indicators of this new way of thinking became evident in the growing popularity of corporate social responsibility (CSR) initiatives, ethical business practices, and the adoption of sustainable development goals (SDGs).

In 2019, the Business Roundtable revised its corporate purpose statement, emphasizing responsibility to stakeholders as well as shareholders. This statement of purpose was already being promoted by leaders and organizations around the world who were challenging traditional practices of profit maximization at the expense of social and environmental concerns.
In fact, the nonprofit B Lab was founded in 2006 by three friends who shared a vision to make business a force for good. The first 82 Certified B Corps were certified in 2007.

So what exactly is B Lab? It’s a nonprofit network transforming the global economy to benefit all people, communities, and the planet through collective action. Any business, regardless of size, can participate with or without going through the assessment process.

Using a free online assessment tool, you can evaluate where your business stands and what the next steps are that you can take towards doing more good with your business.

I took that assessment back in 2015 and was so impressed with B Lab’s standards that I submitted Prosper for Purpose’s assessment to B Lab, and we became certified in 2016. Since then, we have been recertified two times.

B Lab states: “Building on B Lab standards and the assessment process, the B Lab network leads economic system change to support our collective vision of an inclusive, equitable, and regenerative economy. Our programs and tools help B Corps and non-B Corps plan for a resilient future — including multinationals looking to understand their social and environmental footprint — and our policy work pushes for meaningful legal change around corporate accountability and social impact.”

The concept of “business as a force for good” advocates for businesses to incorporate ethical practices, social responsibility and sustainable initiatives. Businesses have a profound impact on society when they prioritize purpose alongside profit, something I’ve witnessed firsthand through the work of my agency and our clients, many of whom are also B Corps.

If you’re wondering if prioritizing people and the planet alongside profit can actually grow a business, companies such as Patagonia, Ben & Jerry’s, Unilever, and the world’s largest B Corp, Natura, have demonstrated that profitability and positive impact are not mutually exclusive.

In fact, evidence suggests that businesses committed to social responsibility often outperform their counterparts. Consumers are more savvy and increasingly favor brands that align with their values. Likewise, employees seek purpose-driven workplaces. Businesses that implement ethical principles and practices benefit from higher brand loyalty and a more engaged and productive workforce.
Ethical business practices also contribute to long-term economic stability by mitigating risk. As more companies address issues such as climate impact and ethical supply chain management, they position themselves to prosper and lead in our changing world.

Businesses have a unique ability to use their skills and resources to impact their communities as well. Initiatives such as Microsoft’s Affordable Access Initiative and Google’s Grow with Google are big examples, but any business can have an impact. Think about your resources and how you could help your community. Look for other local businesses and offer to partner on an initiative.

B Lab stresses that businesses play an important role in mitigating environmental challenges, as they are major contributors to climate change and resource depletion. Embracing sustainable practices such as adopting renewable energy sources, reducing carbon emissions, and minimizing waste are steps each of us can take to minimize our negative impact on the planet.

Perhaps one of the most important practices we can focus on is ethical leadership. We all know that culture starts with the leader. By prioritizing integrity, transparency, and accountability, we can set an example for our employees and earn their loyalty in return.

Ethical leadership also enhances a company’s brand because your best ambassadors are your employees and your customers — but only one has the inside track.

I’ve talked about what B Corps are and how you can utilize the B impact assessment to see how you can use business as a force for good with or without becoming a certified B Corp. However, I want to acknowledge that this is not an easy path. Challenges persist.

B Lab has worked to address these challenges by making changes to the assessment every few years. The framework isn’t a fixed one, nor should it be.

But the paradigm shift towards “business as a force for good” reflects an acknowledgement that the success of a business relates to its impact on society and the environment. Ethical business practices, social responsibility, and environmental sustainability enhance a company’s brand, create a positive culture, and contribute to long-term success.

As more businesses embrace this new paradigm, we have the potential to become powerful forces for good, driving positive change on a global scale and promoting a more sustainable, equitable, and prosperous future for all.