Using the Power of Business to Solve Social and Environmental Problems
Introductions
• Background– – Scaled from inception to $250 MM– Sold business in 2005
• What’s Next?– New Company– Fund– Infrastructure Play: B Lab
Infrastructure Play
• Three elements missing preventing market acceleration:
– Standards
– Legal Framework
– Collective Voice
We need a new sector of the economy . . .
- Govt/nonprofit sectors necessary, but insufficient - Business drives everything (77% US GDP)- Business can solve problems at scale with speed
- C Corps, S Corps . . . B Corps
• Procurement/Supply Chain preferences
• Investment preferences
• Tax incentives
• Social stock exchanges
. . . as large as the nonprofit sector today
Why does this matter?
B Corporations:
• Meet high performance and legal standards
• Differentiation for: consumers employees investors policy makers
• Build collective voice for “good companies”
What’s a B Corp?
Some examples?
Standards
• B Ratings System– Comprehensive Assessment Tool
• Transparent • Rigorous yet User-Friendly
– Tools & Best Practices• Improve Performance• Management Tool
– B Report• Comparable• Defines what’s good enough
– Version 1.0• Dynamic• Industry Specificity
Legal Framework
• Shareholder to Stakeholder Business– Legal Structure for Beneficial Businesses
• Works within current corporate law• Expands the responsibilities of the corporation to
include the interests of stakeholders
– Functionality• Permission and Protection for Directors• Expands the rights of shareholders
– Built to Last• New Management• New Investors• New Owners: IPO / Acquisition
Collective Voice
• Unifying Ingredient Brand– Unites social enterprise and
sustainability movement• Manifestation of the same intent
– Makes good easy• Consumers• Investors• Employees• Suppliers
– Significant market with minimal presence
• Influence the market beyond the success
of your individual company
• Save money (i.e. 75% off Salesforce)
• Maintain mission post-sale/succession
• Differentiation via third-party validation
But, what’s in it for me?
New Sector of the Economy
• Capital Markets
• Supply Chain Initiatives
• Policy
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