B Corporations (B Corps) are for-profit companies that break the traditions of most companies by going through a rigorous transparent assessment to measure the impact on their key stakeholders. Jessica Thomas, lecturer and director of the Business Sustainability Collaborative, said that stakeholders include employees, customers, communities and the environmental impact.
Thomas believes that B Corps will satisfy the needs of employees who want to work at impact-driven companies and consumers who want to support businesses with sustainable business models.
“Increasingly, stakeholders are struggling to identify those companies that have truly embedded social and environmental impact into their business models,” said Thomas.
Today, industries are seeing more companies expressing interest in acting like a B Corp and becoming B Corps. Thomas is the co-founder and president of B Academics, a global academic community that studies B Corps, which is looking to build and expand a B Economy that would include academics, corporations, investors and consumers together as a global economy.
“I think we will see other stakeholders get involved in the B Corp movement,” said Thomas. “Increasingly, we are seeing investors who are using the B Impact Assessment as a tool to measure and evaluate companies they are considering investing in.”
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This post was originally published in Poole College of Management News.