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To B Corp or not to B Corp: Reading the signs in a changing business landscape
The 1987 movie Wall Street had the titular character enunciate the words “greed is good” as a credo for a corporate world where profit reigns supreme.
However, in today’s business landscape, a new breed of companies has emerged – ones that prioritise purpose alongside profit.
These companies, known as B Corporations or B Corps, are challenging the traditional notion of success by redefining what it means to be a responsible and sustainable business.
As a centre of business and entrepreneurial excellence, Bristol has been at the forefront of the B Corp movement.
One of the city’s pioneering B Corps was Pukka Herbs. The organic tea and herbs company became one of the first businesses in the UK to achieve B Corp certification in 2015, setting an example for others in Bristol and beyond.
“Our most challenging problems cannot be solved by governments and nonprofits alone. By harnessing the power of business, B Corps commit to positively impact all stakeholders” – Andy Hawkins – photo: Business On Purpose
With the B Corp movement celebrated throughout March, Bristol24/7 spoke to Andy Hawkins, the co-chair of the Bristol & Bath B Local, which consists of 116 B Corps in the Bristol area.
Hawkins, who also runs Business On Purpose as its C-3PO (chief people, planet & purpose officer), says the most challenging problems facing the world can’t be solved by governments and non-profits alone.
“By harnessing the power of business, B Corps commit to positively impact all stakeholders – workers, communities, customers, and our planet,” Hawkins tells Bristol24/7.
“The month of March each year is celebrated as B Corp Month by the local B Corp community. It’s a bit like Fairtrade Fortnight, but has a focus on all the companies around the world who have been certified by B Corp as using their business as a force for good with an equal focus on people, planet as well as profit.”
Since 2020, Hawkins has helped over 380 clients and he is also the founder of Purposefest.
“In Bristol we joined together at Purposefest to learn, share, inspire, dance and sing together. There are now 116 B Corps in the Bristol & Bath B Local – all of them doing some great work. B Corp month is their opportunity to shine and collaborate together,” continues Hawkins.
“One of the great opportunities that we share together is the one to show how we do business differently through a set of shared values.”
What is a B Corporation?
The first B Corp certifications were awarded in 2007, marking the official launch of the B Corp movement. Since then, the movement has gained traction globally, with thousands of businesses across diverse industries becoming certified B Corporations.
The B Corp presence in Bristol began to take shape in the early 2010s when several socially conscious businesses in the city became interested in the B Corp certification process. These companies, driven by a shared commitment to sustainability and ethical business practices, saw B Corp certification as a way to formalise their dedication to social and environmental responsibility.
Unlike traditional business models that focus solely on maximising shareholder value, B Corps subscribe to the triple bottom line framework. This approach considers not only financial returns but also social and environmental outcomes. By integrating these three dimensions of performance, B Corps aim to create long-term value for all stakeholders, not just shareholders.
Throughout its brief history of B Corp, the city’s vibrant community of social enterprises, startups and established businesses contributed to Bristol’s reputation as a hub for socially responsible entrepreneurship. Organisations based in the city, such as Triodos Bank, known for its commitment to ethical banking, played a key role in promoting the values of the B Corp movement.
The rigorous process of B Corp has been imperative for businesses to proactively practice what they profess, as opposed to running cynical PR campaigns. Many businesses feel that they have a social responsibility for fairness and sustainability.
As awareness of the B Corp movement grew, more businesses in Bristol began to pursue B Corp certification. Companies across various sectors, including food and beverage, retail and technology, embraced the B Corp ethos and sought to align their operations with its principles.
Paul Handford, communications director at social impact property fund manager Resonance, said: “We are proud to be one of the 8,000+ B Corps across the world and be part of the fast growing community of purpose based organisations in the UK.
“We are proud to be one of the 8,000+ B Corps across the world and be part of the fast growing community of purpose based organisations in the UK,” says Paul Handford – photo: Resonance
“The B Corp certification made total sense to us, as it reflects the values that we have always held as a business since when we first launched back in 2002 that business should always be a force for good.”
Working for a B Corp often fosters a sense of purpose among employees. Knowing that their company is making a positive impact can boost morale and retention rates.
“You don’t just write some policy documents and get the certification. It takes long term commitment and cultural shift in your operations” – Johnny Palmer – photo: Milan Perera
Some investors specifically seek out B Corps for investment opportunities, recognising the potential for both financial and social returns. Additionally, B Corps may have access to impact investment funds that support their mission-driven initiatives.
On this subject, Bristol24/7 spoke to Johnny Palmer, who has PYTCH and Box7 under his leadership. It was recognition that the events industry in its traditional sense is not sustainable that prompted Palmer to explore the B Corp route.
“It makes us focus on our environment, our community, our supply chain and how sustainable we are for the future,” he explained.
Palmer reiterated that B Corp is not a policy document but something one has to live by.
He said: “Now, sustainability doesn’t just mean being environmentally sustainable. It means being sustainable as people and profits and the operations of the business.
“And the impact that has is it makes us think much more about our place in the world and, overall, makes it better business. For those companies out there thinking of becoming a B Corp, I’d recommend it but don’t see it as like an ISO certification. You have actually got to live it and breathe it. You don’t just write some policy documents and get the certification. It takes long term commitment and cultural shift in your operations.”
Victoria Matthews, Bristol head of Business West reiterated the need to “lead by example” – photo: Milan Perera
The regional umbrella organisation that represents the interests of business, Business West reiterated the need to “lead by example”.
Victoria Matthews, Bristol director of Business West, said: “Business West is a purpose-driven business leadership and support organisation. We champion responsible business and therefore need to lead by example. Our B Corp status demonstrates that we practice what we preach. The process of going through our re-certification has also highlighted the improvements we’ve made over the past three years.”
Tom Ball, the founder of DeskLodge says there are many people in Bristol who care about the ethics of a company – photo: DeskLodge
For some businesses, the B Corp path is a result of long reflection on social responsibility despite the inconvenience of a stack of paperwork.
Tom Ball, the founder of the Redcliffe-based hot-desking firm, DeskLodge, said: “Someone told me ‘a principle is something that costs you money, everything else is just a marketing preference’. We’ve always tried to do the right thing – even when it’s more expensive or more difficult. I’ve always believed there was much more to business than profit. That companies should act responsibly – and that where you work matters in every sense.
“The decision to formalise that and become a B Corp made a lot of sense. There’s a lot of paperwork involved in measuring and documenting everything. At first, I was resistant – as I’d rather have spent that time doing more rather than showing how much we’d done. But I realised you can’t have a standard without measuring things – and it helped us find more things we could do better.”
He added: “Bristol is an incredible city and it feels like there are a lot of people here who care about how they act – and that matters to the companies and people they work with.”
“Becoming the highest scoring B Corp period brand in the UK confirms and celebrates our commitment” – Fran Lucraft – photo: Owen Billcliffe
The Redland-based sustainable period product company Grace & Green was awarded the B Corp certification recently. Founder Fran Lucraft said: “Grace & Green is more than just ethical products, we work to tackle period poverty and stigma on a daily basis, advocating for free period products in all public spaces.
“The majority of the company is also owned by the people who make our vision a reality everyday. Becoming the highest scoring B Corp period brand in the UK confirms and celebrates this commitment.”
B Corp status provides legal protection for companies that prioritise stakeholder interests over shareholder primacy. This can shield them from lawsuits that might arise if decisions prioritise social or environmental goals over short-term profits.
B Corps are businesses that meet the highest standards of verified social and environmental performance, public transparency and legal accountability to balance profit and purpose. These companies undergo a rigorous assessment process conducted by the nonprofit B Lab, which evaluates their impact on workers, customers, community, and the environment.
While B Corps offer numerous benefits, they are not without challenges and criticisms. Some skeptics argue that the certification process is costly and time-consuming, making it inaccessible to smaller businesses. Others question whether B Corp status truly signifies meaningful impact or if it is merely a marketing tactic to attract conscious consumers.
In a world facing pressing social and environmental challenges, the role of business in driving positive change has never been more crucial.
B Corps represent a promising model for harnessing the power of capitalism to address these challenges while creating value for all stakeholders.
While the decision to become a B Corp involves significant commitment and effort, the potential rewards—both in terms of financial success and social impact—make it a compelling choice for forward-thinking businesses.
Main photo: Milan Perera
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