VolunteerMatch Solutions BPN Webinar: Building Business to be the Best FOR the World

1 Confidential and Proprietary

B Corporations: Building Business to be the Best FOR the World

March 27, 2012

Vale Jokisch Director of Services, B Lab

How To Ask Questions


Type questions into the box on the right side of the your screen Submit via Twitter to @VM_Solutions using “#VMbpn” We will pose questions at the end of the presentation A copy of the sides will be circulated after the event

B Corporations - Public Policy - Impact Investing

Certified B Corporations

A New Kind of Company For a New Sector of the Economy

A webinar in collaboration with


The Trend • 60 million conscious consumers • $2.7 trillion available from socially responsible investors • 100,000+ social entrepreneurs and sustainable businesses

The Problem

• Current corporate law works against sustainability and social impact • No standards to distinguish good companies from good marketing

The Opportunity 20th Century 21st Century Shareholder corporation Stakeholder Corporations (maximizes shareholder value) (creates social and shareholder value) The Need

Standards to drive support


B Lab is nonprofit organization that supports the world’s leading entrepreneurs using business to solve social and environmental problems

Initiative 1: Shine a light on the

Entrepreneur Certified B Corporations

Initiative 2: Remove legal impediments

for the Entrepreneur Public Policies

Initiative 3: Drive capital to the

Entrepreneur Impact Investments

The Entrepreneur is the engine of change


Leading this movement are 500+ B Corps across 60 industries and 40 states

Building a movement (Initiative 1)


What is a B Corporation?

Certified B Corporations use the power of business to solve social and environmental problems Unlike traditional businesses, B Corps must:

• Meet comprehensive and transparent social and environmental performance standards

• Meet higher legal accountability standards • Build business constituency for public policies

that support sustainable business

http://bcorporation.net/why


Why do B Corps matter?

Certified B Corporations are leading a movement to redefine success in business and build a more inclusive, resilient and sustainable economy.

B Corps want to influence the market beyond the scope of their individual businesses. These entrepreneurs are striving to be, not just the best in the world, but the best for the world.


Who are the B Corps?

• Ventura, CA • 1300 Employees • Apparel and Outdoor Wear Company Pioneer in organic and PCR textiles Founded 1% for the Planet Leader in supply chain transparency

• Grand Rapids, MI • 1000 Employees • Sustainable manufacturing at scale Quality jobs in depressed economy Moving into renewables and BoP Vision for regional sustainable economic

development

B Corps are large products retailers and manufacturers…



• Yonkers, NY • 55 Employees • Baked Goods Open hiring policy = opportunities for

individuals with barriers to employment 100% profits to community development 100% facilities LEED Certified

• Waltham, MA • 11 Employees • Housewares & Personal Care 100% recycled inputs Return mailer recycling Preserve Gimme 5 Program to bring

leading brands together

B Corps are social and environmentally focused SMEs…



• Oakville, Ontario • 156 Employees • HR and Employee/Contract Placement Building connections to meaningful

opportunities for individuals New division focused on placing

executive leaders focused on stewardship through business

• San Francisco, CA • 5 Employees • Credit Card Processing & Merchant

Services 10% gross profits donated to

customer’s charity of choice Certified Green Business Local & Low-Income Suppliers

B Corps are in non-traditionally “green” or “social” industries


How does a company become certified?

To become certified a company must:

1.Earn a minimum score of 80 (out of 200 available points) on the B Impact Assessment

2.Adopt the B Corp Legal Framework to bake the mission of the company into its legal DNA

3.Sign the Declaration of Interpendence and B Corp term sheet


Performance Standards – The B Impact Assessment

The B Impact Assessment is a free and useful web-based tool to: 1. Assess a company’s impact on each of its stakeholders 2. Improve it’s social and environmental performance using tools and best

practices embedded in the assessment

Over 2,000 companies are using the survey to benchmark their impact



The B Impact Assessment is: • Comprehensive – evaluates impact in terms

of accountability, employees, consumers, community and environment

• Adaptable - metrics tailored to industry and company size

• Transparent – criteria and weightings made transparent

• Dynamic – new survey created every 2 years incorporating community feedback

• Independent – developed by third-party Standards Advisory Council


What does it measure? Workers Job Growth Compensation & Benefits Work Environment Employee Ownership Community Suppliers Local Diversity Charity/Volunteerism Environment Energy Use Facilities Supply Chain Manufacturing Governance Transparency Accountability

+ Social Enterprise Business Models Beneficial Products/Services Targeting Underserved Communities Beneficial Supply Chain

Must earn 80 of 200 available points Must be verified w/ random on site audit



How do B Corps stack up against other sustainable businesses?

B Corp 2012 Index Certified B Corps score 25% higher than other sustainable

businesses on the B Impact Assessment*

* Based on median score of 504 B Corps and of 1,941 other companies that have voluntarily completed the B Impact Assessment. For more: http://www.bcorporation.net/resources/bcorp/documents/BcorpAP2012_B-Corp-Index.pdf

Overall Certified B Corps Other Sustainable Businesses

Overall Score 105 84 Impact Areas % of points earned on B Impact Assessment

Workers 56% 48% Community 62% 45% Environment 59% 38% Governance 73% 57%

http://www.bcorporation.net/resources/bcorp/documents/BcorpAP2012_B-Corp-Index.pdf






What are B Corps doing to volunteer and serve their local communities?

~20% allow >20 hrs/year of paid time off for community service

32% donate >10% of profits or 1% of sales to charitable organizations

25 B Corps have over 75% of employees take paid time off to volunteer

100% employee owned 1075 volunteer hrs in 2010

>200 hrs of employee community service >5% net profits given to charity

>20hrs/year of paid time off for community service Employee committee create monthly volunteer opportunities

$10,285,931 raised for literacy & libraries Employees determine charitable donations


Legal Standards – The B Corp Legal Framework B Corps amend their Articles of Incorporation, requiring them to consider the impact of decisions not only on shareholders but also on stakeholders

What are the benefits?

• Gives legal permission and protection to officers and directors to consider all stakeholders, not just shareholders

• Creates additional rights for

shareholders to hold directors and officers accountable to these interests

• Limits these expanded rights to

shareholders exclusively -- non-shareholders are explicitly not empowered with a new right of action


What is the value of being a B Corp?

• Differentiate brand

• Maintain mission

• Save money

• Generate press

• Build Business

• Improve and benchmark performance


Want to learn more?

• Log onto bcorporation.net to take the free B Impact Assessment

• Read B Lab’s 2012 Annual Report for stories on B Corps

• Check out Certified B Corp Dogeared’s video on Being a B

http://www.bcorporation.net/

http://www.bcorporation.net/2012-Annual-Report

http://www.dogeared.com/bcorp.php


Questions?

Vale Jokisch – [email protected] Office: 610.296.8283 Cell: 267.227.0087

Thank you!

mailto:[email protected]

Stay Informed

Blog (new look!): www.VolunteeringIsCSR.org

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Upcoming BPN


Impact at Work: Driving Positive Change by Encouraging Intrapreneurship Guest Speaker: Britta Durtsche Senior Manager of Chapters Net Impact Register: https://www1.gotomeeting.com/register/698532408 Wednesday April 11, 2012 10-11 a.m. PT (1-2 p.m. ET)

https://www1.gotomeeting.com/register/698532408


Appendix


Certified B Corp vs. Benefit Corp: What’s the Difference?

Benefit corporations and Certified B Corps are often confused. Both are sometimes called B Corps by mistake or as shorthand. They share much in common and have few important differences.

Certification vs. Corporate Form

Certified B Corporation is a certification conferred by B Lab.

Benefit corporation is a legal status administered by the state. Benefit corporations do NOT need to be certified.


Certified B Corp vs. Benefit Corp: What’s the Difference?

What? Certified B Corporation Benefit Corporation Same or Different?

Accountability Directors required to consider effects of decisions on shareholders and stakeholders

Directors required to consider effects of decisions on shareholders and stakeholders

Same

Transparency Must publish a report assessing their overall social/environmental performance against a third party standard

Must publish publicly a report assessing their overall social/environmental performance against a third party standard

Same

Performance Must achieve a verified minimum score on the B Impact Assessment

Report is not required to be verified, certified or audited

Different

Support Can access portfolio of services and support from B Lab (marketing, raising money, etc.)

-- Different

Availability Available in all 50 states and around the world

Legally recognized by 7 states Different