B Corp Explained 6 October 2020 A little bit about you What is a - - PowerPoint PPT Presentation

FDF Webinar: B Corp Explained

6 October 2020

Welcome…

A little bit about you

The B Impact Assessment tool is a holistic assessment of the whole business, promoting the highest standards of social and environmental performance

What is a B Corp?

B Corps legally commit to considering the impact of their decisions on all their stakeholders, not just shareholders. B Corp is a global movement of businesses supporting each

• ther to improve and drive

global change

Comprehensive

Impact Analysis Mission Lock A Global Movement

Join a movement

Be part of something bigger, help to drive change and redefine the role of business

Protect mission Amplify voice Global community Attract talent Improve impact, resilience & performance

The B Corp legal framework helps protect a business’ mission through leadership changes The credibility associated with certification helps B Corps stand

• ut from the crowd

Access to shared ideas and practices through a vibrant community of like-minded businesses Appeal to employees who are increasingly looking for purpose at work ; engage them around a shared vision Help set goals for improvement and track performance over time; leading to greater resilience and higher performance .

Why do companies certify?

Why responsible business and B Corps are so relevant now

The Winds

• f Change

Global landscape for business is changing

Rapidly worsening social and economic inequality Increasing levels of citizen and employee activism Investors increasingly recognising ESG performance Currently ‘way off track’ to limit global warming to 1.5C Decline of shareholder primacy Greater expectations of business

A steep rise in the businesses certifying

3500+ in over 71 countries 400+ in the UK

Just some of the 3500+ companies who are certified

The Certification Process James Ghaffari

Director of B Corp Certification, B Lab UK

is underway to harness the power

• f business to help address

society’s greatest challenges and to build a more inclusive economy.

A historic global culture shift

B Lab UK Poll 2020

believe that business should have a legal responsibility to the planet and people, alongside maximising profits. believe capitalism isn’t working well or is harmful to the UK economy. believe business have a responsibility to protect the natural environment.

76% 76%

Shareholder Value

20th Century

Stakeholder Value

21st Century

Certified B Corporations meet high standards of verified social and environmental performance. They are legally committed to consider the impact of their decisions on all their stakeholders, not just shareholders.

Building the B Economy

3,500+

CERTIFIED B CORPS 65 COUNTRIES

150

INDUSTRIES

1

UNIFYING GOAL

The B Corp Community

Duplication?

B Corps and MNCs

Parent Companies Subsidiaries that are Certified B Corps

How to become a Certified B Corp

Pass the assessment Make the legal change

B Corps must achieve a verified score of at least 80 points on the B Impact Assessment. The BIA assesses the impact of an entire company. B Corps amend their articles of association committing to consider the impact of their decisions not just on shareholders but all stakeholders.

What is the B Impact Assessment?

What questions are asked?

PRACTICES

QUANTITATIVE INDICATORS

What questions are asked?

DIRECTIVES/RULES

EFFECTS/OUTCOMES

Key Components

Comprehensive & Positive

Focuses on proactive management and positive impact Considers all stakeholders and all aspects of the business.

Standardized & Adaptive

Dozens of tracks developed according to sector and size.

Objective & Dynamic

The questions are:

• Verifiable
• Stakeholder-oriented
• Independently governed

Updated every three years V6 published in January 2019

Inspiring & Educational

Intentionally difficult and challenging. Improvement tools and good practice guides.

How to become a Certified B Corp

1

Pass the performance test Meet the legal requirement

3

Make your status official

4

Pay the certification fee

Score 80+ on the B Impact Assessment and complete Disclosure Questionnaire to submit. Amend your company’s constitution to reflect stakeholder objectives – checkout the online legal tool for requirements in your country Sign the Term Sheet and B Corp declaration of interdependence to show your commitment Depending on annual revenue, the certification fee ranges from £500 to £50,000+

2

Get Verified

Complete your Standards verification.

5

Demystifying the legal change

What is the Legal Test?

Commitment to the triple bottom line Uses Companies Act Article 172 as legal basis to ensure a B Corp enshrines commitment to:

• creating a material positive impact on society and the environment through its business and
• perations
• considering ‘stakeholder interests’ – including shareholders, employees, suppliers, society and

the environment

5

hello

Roz Davis Head of Sustainability & Nutrition

Why B Corp for innocent

and

What impact has it had in our business

Why B Corp for innocent

innocent has always believed you can do business in a different way

help the world’s hungry

But since we set our purpose, a lot has changed…

Our world is in crisis, and as a food business, we feel that impact every day

we are the first generation of leaders that can’t say we didn’t know

Opportunity for leadership

and the last generation

• f leaders that can do

anything about it

Source: Volans

Opportunity for innovation aka think about things differently

Opportunity for impact through collaboration

So, in 2018 we joined the global movement and became a certified B Corp

Our overarching driver? to join with like-minded businesses to be faster and louder on

inspiring wider change

We had other drivers for becoming a B Corp

Internal talent & engagement Challenge ourselves to be an even better business A natural extension of our DNA Credibility that what we say we do, we actually do

We liked the fact that B Corp challenged every area of our business

Capitalism V1.0

Profit

Planet People

B Corp fits with what we have always believed – business has to show the way

The traditional view of business

Profit Planet People

Business as a force for good

There is a relevance for our drinkers, as B Corp taps into a key consumer trend

Good Products Good Companies

“90% say that companies must not

• nly say a product or service is

beneficial, but they need to prove it.” “73% of consumers care about the company, not just the product when making a purchasing decision.”

What impact has it had in

• ur business

We’ve had more positive impact being part of a like-minded community

It’s helped us to think about our impact more in the round

It’s enabled everyone in the business to get involved in force for good…

…which has helped engagement and also provided opportunities for people to stretch and grow

It’s helped us set out a roadmap of where we can continuously improve

And frankly, it’s made us braver as a business

What legacy do we choose to leave in business?

The nursing home test

when

Your questions

Sally McCombie sally@mccombieconsulting.co.uk B Lab: certification@bcorporation.uk innocent: rozanne.davis@innocentdrinks.co.uk

Thank you for attending

To find out more about what FDF membership can

• ffer you email us at Members.Enquiries@fdf.org.uk

https://www.fdf.org.uk/whyjoinfdf.aspx 6 October 2020