Oct. 17, 2019 — With millennials populating the work force in greater numbers, corporate America is realizing that the “maximize profits” business model may need an overhaul.
Values held by the next generation of workers may be part of why there is a growing global movement toward a what’s known as a “B Corp” — a certification for businesses that strive to operate in a sustainable and responsible way, and to make a positive social impact.
“More than at any time, there is a wide discussion about the goal of business being beyond shareholders and profit maximization,” said Assistant Professor of Management Maria Ballesteros-Sola, who specializes in B Corps and social enterprises. “It’s no longer ‘I don’t care about carbon emissions as long as we keep creating wealth for the shareholders.’”
Ventura and Santa Barbara County businesses and entrepreneurs appear to mirror this trend as RSVPs to a “B Corp Roundtable” on Wednesday, Oct. 23 at CSU Channel Islands (CSUCI) are coming in quickly. For those interested in learning more about the B Corp certification first hand from local B Corp leaders, the roundtable will be held from 12:30 to 2:30 p.m. in the Petit Salon on campus. The event is free and open to the public.
Ballesteros-Sola credits local interest with a general shift in values worldwide, especially among the younger work force.
The 2019 Deloitte Global Millennial survey shows millennials and Gen Zs, in general, will patronize and support companies that align with their values. Climate and environment are both generations’ top concerns and they will not hesitate to lessen or end a consumer relationship when they disagree with a company’s business practices, values or political leanings.
“A lot of businesses tell me that becoming a B Corp is serving them as a recruitment tool as millennials want to work for companies with values,” Ballesteros-Sola said. “They are also using the B Corp certification as a road map to strengthening sustainable practices already in place in their companies’”
After a chance for guests to network, five B Corp leaders will introduce themselves, give short presentations, and then invite questions from the moderator and the audience.
Panelists will include Eric Cardenas from LOACOM, a Santa Barbara consulting company; Michelle Stevens of The Refill Shoppe in Ventura, which offers refillable products in order to cut down on plastic waste; Merlin Clarke of Do Good Bus & Dogeared, which arranges team-building bus trips to do volunteer work (Dogeared is a brand of jewelry); Manny Barragan from Beneficial State Bank: and Andrea Chase of Way to B & B Local LA, a collaboration of B Corp team leaders from the Los Angeles area.
To be a certified B Corp, a company must be scrupulous about adhering to a list of social and environmental standards developed by B Lab, a nonprofit founded in 2006 in Philadelphia, Pennsylvania.
According to Ballesteros-Sola, there are more than 3,000 certified B Corp companies across the world, but only a few in Ventura and Santa Barbara counties. Ballesteros-Sola, who also holds a leadership position in the global network of B Academics has long envisioned a thriving B Corp movement in our region. This event is part of a bigger plan to make that vision a reality.
“Think Patagonia, Method, Seventh Generation, Danone, TOMS Shoes… these are all certified B Corps,” Ballesteros-Sola said.
B Corp companies are different from nonprofits as they are for-profit, but they hold the highest social and environmental standards.
“It involves decisions about how to responsibly deal with workers, suppliers, customers, the environment and how they engage with the community,” Ballesteros-Sola explained. “For example, when they look for a new supplier, they might favor suppliers that are majority owned by women or individuals from underrepresented populations.”
B Corp companies’ policies are employee- and family-friendly and may include employee ownership opportunities, job flexibility, on-site child care or paid time off to volunteer, for example. The company works to ensure their impact on the environment is minimal by seeking sustainable solutions for their supply chain.
“Each business applying for the B Corp certification will answer a questionnaire called the B Impact Assessment and must obtain a minimum score of 80, submit supporting documentation, and pay the fees in order to get certified for three years” Ballesteros-Sola said. “This is a global movement that its proving to the world that business can be a force for good. I would like to invite everyone in our community to learn more about it.”
To RSVP, visit: go.csuci.edu/BCorp.