In today’s economy, businesses are expected to do more than just generate profit. The rise of B Corps demonstrates that entrepreneurship can also drive social and environmental impact. But what exactly sets a B Corp apart from a traditional business? And how has this movement evolved into a global force for change? In this blog, we explore the differences and the inspiring history of the B Corp movement.
What is a B Corp?
A B Corp, or Benefit Corporation, is an organization that prioritizes social and environmental responsibility alongside profit. To achieve B Corp certification, a company must meet rigorous standards in areas like transparency, sustainability, and societal impact. This includes reducing CO₂ emissions, providing fair working conditions, and supporting local communities.
In contrast, traditional businesses often focus primarily on maximizing profits for shareholders. While some may voluntarily engage in sustainability or social initiatives, they typically lack the structured, measurable approach of a B Corp.
Key Differences Between B Corps and Traditional Businesses
1. Mission-Driven vs. Profit-Driven
Traditional businesses typically have a primary goal of generating profits for shareholders. B Corps, however, pursue a broader mission: balancing profit with people and the planet.
2. Accountability and Transparency
B Corps are annually assessed by B Lab, the organization behind the certification, to evaluate their social and environmental impact. Traditional businesses are less frequently held accountable for their impact beyond financial performance.
3. Long-Term Thinking
While traditional companies are often driven by quarterly earnings, B Corps focus on sustainable growth and lasting impact.
4. Stakeholder Focus
Traditional businesses often prioritize shareholder interests. B Corps, on the other hand, consider all stakeholders—including employees, customers, communities, and the environment—in their decision-making processes.
The History of the B Corp Movement: From Vision to Global Impact
The B Corp movement began in 2006, when the nonprofit organization B Lab was founded in the United States. Its founders, Jay Coen Gilbert, Bart Houlahan, and Andrew Kassoy, recognized how traditional business models often prioritized profit at the expense of people and the planet. They sought to create a system where businesses could contribute positively to society.
The first B Corp certification was awarded in 2007, and the movement has grown steadily ever since. Today, there are more than 6,000 B Corps across 80+ countries and in diverse industries ranging from food production to technology. Well-known companies like Patagonia, Ben & Jerry’s, and Tony’s Chocolonely demonstrate how businesses can make a powerful impact within the B Corp model.
This growth reflects not only the urgency of societal challenges but also a shift in expectations from consumers, employees, and investors. These groups are demanding greater transparency, sustainability, and accountability from the companies they engage with.
Why the Difference Matters
The rise of B Corps has sparked an important conversation about the role of businesses in society. While traditional businesses are often viewed as contributors to problems like inequality and environmental degradation, B Corps prove that companies can also be part of the solution.
Through rigorous certification and ongoing evaluation, B Corps ensure that their impact is measurable and credible. This builds trust with consumers and stakeholders, while encouraging traditional businesses to take steps toward greater responsibility.
Share Council and the B Corp Movement
At Share Council, we are proud to be part of the B Corp movement. Our mission goes beyond helping businesses become sustainable; we aim to transform them into organizations that share ownership and responsibility. By enabling employees to become co-owners, we work toward a fairer and more inclusive business model that aligns with the values of a B Corp.
The history of the B Corp movement shows that meaningful change is possible when businesses take responsibility for their impact. At Share Council, we believe every company can be a positive force in the world.
