Founders of mission-driven businesses are determined to have a positive impact on the world through their products or services and by the way they run their businesses and interact with their communities. But how can they ensure the detailed operational aspects of their business …
by Kerrie McDevitt, Senior Consultant, Impact Growth Partners
Founders of mission-driven businesses are determined to have a positive impact on the world through their products or services and by the way they run their businesses and interact with their communities. But how can they ensure the detailed operational aspects of their business are also informed by social and environmental goals? Because the early stages of establishing a company involve so many decisions, it can be overwhelming to consider all of this.
What if a roadmap existed to guide you more easily through the process and help you make the “right” decisions for the betterment of your company and ultimately the world at large? Well, there is one such map. It’s called the B Impact Assessment and it is sponsored by the nonprofit B Lab.
Companies in operation for more than one year can pursue B Corp Certification through this assessment. B Corp Certification is based on a company’s performance on the B Impact Assessment (BIA), which asks questions about a company’s past fiscal year. This means that companies with less than one year of operations are not yet eligible for full B Corp Certification. These startups, however, are able to pursue “Pending B Corp” status if they so choose. Early stage companies do not need to become Pending B Corps, however, in order to pursue B Corp Certification later.
As B Lab states: “Above all, startups hoping to become Certified B Corporations should focus on building a great business! Remember, the first rule of mission-driven business is ‘no margin, no mission.’
Acting with Stakeholders in Mind
Having a positive impact pathway is particularly important for startups launching now, when the world is carefully watching how they lead on any number of significant issues, from climate change to racial inequity to flexible worker policies. Startups may not know what operations or policies are proven to have the best and biggest impact, but the BIA is designed to help them identify options.
Making It Legal
This status is a clear signal to all stakeholders that the company is committed to social and environmental matters, and the legal requirement will ensure that this commitment is protected under the law. By pursuing Pending B Corp status early, a startup establishes itself with a legal commitment to take into consideration all stakeholders by registering as a benefit corporation or incorporating B Lab specified legal language into its corporate governing documents.
By joining the B Corp community from an early stage of development, a company joins a community of like-minded, mission-driven companies. On many levels, this support system can help a company during both thriving and trying times — something that all companies could use, especially now.