Mark Lusky05.26.22
There’s a worldwide movement for businesses committed to customer service excellence on steroids. It’s called B Corporation (B Corp) certification, and it’s starting to gain momentum across the globe.
In essence, B Corps have to meet high standards in responsibly treating all stakeholders, including customers/clients, employees, partners, and yes, the earth itself. Subject to a rigorous certification process, B Corp companies must achieve then maintain excellence across a wide variety of performance areas.
While product manufacturers may or may not have the capability to apply for actual B Corp certification, following their guidelines for high levels of service and continuous improvement can be excellent marks on the wall for companies wanting to enhance customer service, employee treatment, et al.
In turn, accomplishments can be reflected on product labels, either on the labels themselves or digital links/addresses to “read about our commitment to…” Properly done (and not overstated), documentable improvements can be powerful sales tools for consumers increasingly demanding and expecting more from the companies they patronize.
Just as customer service is the new marketing, as discussed in our previous column, B Corp moves the process forward substantially. With a strong commitment to sustainability and social excellence, the B Corp initiative ties in perfectly with product manufacturer commitments to do good for people using their products, as well as the planet.
Notably, being a B Corp certified company does not mean sacrificing bottom line growth. Quite the opposite, B Corp and capitalism can co-exist quite well. It’s just “capitalism with a conscience” versus laissez faire, bean-counter practices that are becoming much less attractive in today’s more conscientious world.
The certification program exists under the auspices of B Lab, described in its website as, “the nonprofit network transforming the global economy to benefit all people, communities and the planet. B Lab recognizes that high-quality social and environmental business standards demand continuous improvement in order to meet principles of inclusion, independence and credibility. Developed according to standard best practices – and informed by stakeholder input and research – our standards have continuously evolved since our founding in 2006.”
The website continues, “B Lab’s standards are multifaceted and include… ‘B Impact Assessment: A comprehensive tool to measure, manage, and improve a company’s positive impact performance for workers, communities, customers, suppliers and the environment’… We began in 2006 with the idea that a different kind of economy was not only possible, but necessary – and that business could lead the way towards a new, stakeholder-driven model. B Lab became known for certifying B Corporations, which are companies that meet high standards of social and environmental performance, accountability and transparency.”
Insider Magazine offered its B Corp perspective in a late 2021 article: “16 B Corps making products we love that you can feel good about buying...B Corps are businesses graded on their efforts to create an inclusive, sustainable economy...These companies treat ‘good business’ as an idea that includes both profit and purpose...We rounded up the B Corps we love shopping at most, including Patagonia, Allbirds, and Prose.”
Investors are jumping on the B Corp bandwagon in increasing numbers. A Spring 2022 Wall Street Journal article points out, “More investors are looking at environmental, social and governance factors when choosing investments for their portfolios. But with that focus comes a whole new language – one that may leave some investors baffled…So whether you call it ESG, sustainable, socially responsible or impact investing, here are some of the terms you need to know…B Corp: A certification provided by the nonprofit B Lab, indicating that a company meets high social and environmental criteria standards while exhibiting public transparency and committing to legal accountability. Companies go through a rigorous assessment process to be registered and then undergo a verification process every three years to be recertified.”
While the attraction of B Corp and other stakeholder-serving models is increasing, so are the pitfalls. Genuine aims abound, but so do opportunities to exploit. One of these is described in the Wall Street Journal article: “Greenwashing: When companies and investment funds give misleading claims about their ESG credentials or how environmentally friendly their products are. SEC chairman Gary Gensler recently said he has asked staff to consider recommendations about whether fund managers should disclose details about the criteria and underlying data they use to define their so-called ESG investments.”
The “When you say it, do it” smell test applies. Product manufacturers need to know that claims unmet are worse than no claims at all. A common customer service gaffe is the disconnect between a company’s glowing prose about how great they are that doesn’t align with actual product quality or service performance. Companies that continue to try to “blow smoke” without any substance increasingly will find themselves isolated and unprofitable.
More than ever, consumers demand and expect transparency and authenticity. It’s time to give it to them.
Mark Lusky is a marketing communications professional who has worked with Lightning Labels, an all-digital custom label printer in Denver, CO, USA, since 2008. Find Lightning Labels on Facebook for special offers and label printing news.
In essence, B Corps have to meet high standards in responsibly treating all stakeholders, including customers/clients, employees, partners, and yes, the earth itself. Subject to a rigorous certification process, B Corp companies must achieve then maintain excellence across a wide variety of performance areas.
While product manufacturers may or may not have the capability to apply for actual B Corp certification, following their guidelines for high levels of service and continuous improvement can be excellent marks on the wall for companies wanting to enhance customer service, employee treatment, et al.
In turn, accomplishments can be reflected on product labels, either on the labels themselves or digital links/addresses to “read about our commitment to…” Properly done (and not overstated), documentable improvements can be powerful sales tools for consumers increasingly demanding and expecting more from the companies they patronize.
Just as customer service is the new marketing, as discussed in our previous column, B Corp moves the process forward substantially. With a strong commitment to sustainability and social excellence, the B Corp initiative ties in perfectly with product manufacturer commitments to do good for people using their products, as well as the planet.
Notably, being a B Corp certified company does not mean sacrificing bottom line growth. Quite the opposite, B Corp and capitalism can co-exist quite well. It’s just “capitalism with a conscience” versus laissez faire, bean-counter practices that are becoming much less attractive in today’s more conscientious world.
The certification program exists under the auspices of B Lab, described in its website as, “the nonprofit network transforming the global economy to benefit all people, communities and the planet. B Lab recognizes that high-quality social and environmental business standards demand continuous improvement in order to meet principles of inclusion, independence and credibility. Developed according to standard best practices – and informed by stakeholder input and research – our standards have continuously evolved since our founding in 2006.”
The website continues, “B Lab’s standards are multifaceted and include… ‘B Impact Assessment: A comprehensive tool to measure, manage, and improve a company’s positive impact performance for workers, communities, customers, suppliers and the environment’… We began in 2006 with the idea that a different kind of economy was not only possible, but necessary – and that business could lead the way towards a new, stakeholder-driven model. B Lab became known for certifying B Corporations, which are companies that meet high standards of social and environmental performance, accountability and transparency.”
Insider Magazine offered its B Corp perspective in a late 2021 article: “16 B Corps making products we love that you can feel good about buying...B Corps are businesses graded on their efforts to create an inclusive, sustainable economy...These companies treat ‘good business’ as an idea that includes both profit and purpose...We rounded up the B Corps we love shopping at most, including Patagonia, Allbirds, and Prose.”
Investors are jumping on the B Corp bandwagon in increasing numbers. A Spring 2022 Wall Street Journal article points out, “More investors are looking at environmental, social and governance factors when choosing investments for their portfolios. But with that focus comes a whole new language – one that may leave some investors baffled…So whether you call it ESG, sustainable, socially responsible or impact investing, here are some of the terms you need to know…B Corp: A certification provided by the nonprofit B Lab, indicating that a company meets high social and environmental criteria standards while exhibiting public transparency and committing to legal accountability. Companies go through a rigorous assessment process to be registered and then undergo a verification process every three years to be recertified.”
While the attraction of B Corp and other stakeholder-serving models is increasing, so are the pitfalls. Genuine aims abound, but so do opportunities to exploit. One of these is described in the Wall Street Journal article: “Greenwashing: When companies and investment funds give misleading claims about their ESG credentials or how environmentally friendly their products are. SEC chairman Gary Gensler recently said he has asked staff to consider recommendations about whether fund managers should disclose details about the criteria and underlying data they use to define their so-called ESG investments.”
The “When you say it, do it” smell test applies. Product manufacturers need to know that claims unmet are worse than no claims at all. A common customer service gaffe is the disconnect between a company’s glowing prose about how great they are that doesn’t align with actual product quality or service performance. Companies that continue to try to “blow smoke” without any substance increasingly will find themselves isolated and unprofitable.
More than ever, consumers demand and expect transparency and authenticity. It’s time to give it to them.
Mark Lusky is a marketing communications professional who has worked with Lightning Labels, an all-digital custom label printer in Denver, CO, USA, since 2008. Find Lightning Labels on Facebook for special offers and label printing news.