Tag Archive for: B Corp

Bolly’s a B Corp, darling

Patsy and Edina’s favourite tipple is now a B Corp, darling.

That’s right Sweetie, Bollinger is the latest bottle of posh bubbly vino to get certified as a B Corp business. Which gives us all cause to utter those immortal words from Ab Fab’s Patsy, ‘crack open the Bolly, darling’. Followed quickly by ‘top up, darling?’ ‘Just a smidge…’

Although, to be fair, Patsy probably wouldn’t care that La Maison Bollinger has formalised its ongoing commitment to its land, its people and its roots. Her only concern would be that they keep making the stuff. 

She doesn’t have anything to worry about there. Now with B Corp certification under its belt, Bollinger has cemented its intention to stay in business by shifting to a model that values planet and people, as much as profit. Champagne Bollinger is the second Champagne business to get its B Corp certification. The achievement sees it join Piper-Heidsieck, Charles Heidsieck and Rare Champagne, all part of EPI Group, as B Corp-certified companies.

So what’s B Corp? It’s essentially a third-party, independent verification of a company’s social and environmental performance. It’s also a global movement that’s working to transform the world’s economy by building a community of businesses that are committed to being a force for good.

What does that look like for La Maison Bollinger? It means formally committing to creating a better future for its employees, for the Earth and for its local ecosystem. More specifically, it means ensuring the wellbeing of its workers, reducing the company’s carbon footprint, preserving vineyard biodiversity, developing a circular economy, and more.

To that we say, cheers, sweetie darling.

 

Become a B Corp

Has Bolly inspired you? Would you like to join the B Corp companies using business as a force for good? Here at Grow Good, we exist to coach people through the process of becoming B Corp certified.

The B Corp Impact Assessment framework  is free to access and provides dozens of useful insights and opportunities for any business but it can be confusing and overwhelming.

We are consultants who have completed the official training provided by B Lab, the organisation that runs the B Corp certification programme. We live, breathe and sleep B Corp. We are your friendly B Corp buddies. We make it easier. We translate the questions into plain English and give you a host of template policies and example documents so you don’t have to start everything from scratch or reinvent the wheel. We show you how to unlock the big point scoring areas most relevant to your business.

Are you ready to go B Corp? It’s completely your decision but if you are, and if you think it would be helpful to have a guiding hand through the process, we’re here to help. Drop us a line or jump straight in and book a free call here – https://bit.ly/BookGGCall

Yours in purpose,

Kia kaha,

Tamara

tamara@growgood.co

First South East Asian B Corp gets S$2m investment

Want another example of how the B Corp movement is redefining success in business?

Let’s look to Singapore for a moment, where speciality coffee business, Bettr Group, has just won investment of S$2 million from the Asia Impact First Fund (AIFF) to fund the next stage of its expansion such as growing its roastery, and funding its programmes that help marginalised communities.

Back in 2015, Bettr was the first company in South-east Asia to receive the B Corp certification. It’s still just one of six Singaporean B Corps. In a challenging climate for securing growth investment funding, this announcement shows that sustainability and B Corp certification can give businesses a major advantage. AIFF aims to provide growth capital to 10 to 15 social enterprises across Asia that have been proven to be financially sustainable and profitable. The AIFF fund is backed by impact investment platform Heritas Capital and DBS Foundation.

Founded in 2011, Bettr offers professional beverage education and owns a roastery that also sells coffee supplies. It also currently operates retail coffee bars in two businesses. The new funding round will enable the opening of retail coffee bars in more businesses, as well as fuel a venture into the business-to-consumer space to enhance its brand visibility in Singapore. With this expansion, Bettr will be able to hire more people from marginalised communities. Currently, 26 per cent of Bettr’s 50 employees are from marginalised backgrounds and comprise mostly graduates from its social programmes.

As an impact fund, the AIFF is not only interested in how much money Bettr makes. A key metric of how the fund will measure the impact of its investment in Bettr is to see the number of lives that have benefitted. A metric that aligns with the ethos of the B Corp impact assessment, where more points are awarded for evidence of positive impact. To date, 242 students have benefitted from Bettr’s social programmes, and 248 students have picked up coffee and emotional literacy skills via its early intervention programmes.

Certification as a B Corp is given by non-profit B Lab to for-profit companies that meet its standards of verified social and environmental performance, accountability and transparency.

Become a B Corp

Here at Grow Good, we exist to coach people through the process of becoming B Corp certified.

The B Corp Impact Assessment framework  is free to access and provides dozens of useful insights and opportunities for any business but it can be confusing and overwhelming.

We are consultants who have completed the official training provided by B Lab, the organisation that runs the B Corp certification programme. We live, breathe and sleep B Corp. We are your friendly B Corp buddies. We make it easier. We translate the questions into plain English and give you a host of template policies and example documents so you don’t have to start everything from scratch or reinvent the wheel. We show you how to unlock the big point scoring areas most relevant to your business.

Are you ready to go B Corp? It’s completely your decision but if you are, and if you think it would be helpful to have a guiding hand through the process, we’re here to help. Drop us a line or jump straight in and book a free call here – https://bit.ly/BookGGCall

Yours in purpose,

Ngā manaakitanga,

Tamara

tamara@growgood.co

 

Five actionable tips for getting B Corp certified

Okay, in the name of full transparency, we didn’t come up with the title of this blog. We were, um, ‘inspired’ by a Forbes article with a similar name. However! As full time B Corp consultants here at Grow Good, we’ve got a ton of experience and know-how in the area of getting a business B Corp certified so we are going to add to the conversation started by Forbes.

The five top tips outlined in the Forbes article are:

  1. Put sustainability practises in writing
  2. Use data to demonstrate performance
  3. Decide where to make a meaningful difference
  4. Give the team a voice in the decisions
  5. Don’t approach the application as a tick-box exercise

All excellent points! Perhaps though, in the wrong order. I think there’s a better way to navigate your B Corp journey. Jumping straight into writing documents is gonna break anyone’s spirit so this is why at Grow Good, we would recommend the following five steps.

  1. Get all your team engaged and excited: First, you’ve got to get everyone on the team up to speed and excited. It’s in line with the theory of getting everyone in the boat rowing in the same direction. This is why we start a new client off with what we call a ‘kick off session’, this is an hour’s workshop online or in person for your whole team, where we go through the what, why and how of the whole B Corp movement. By the end of it, everyone on your team understands what B Corp is and why you’re doing it. Most of all, they’re excited about being part of a global movement that’s actively driving transformation to a world where planet and people is valued as much as profit. This team buy-in is priceless and will not only make your certification process easier, it will reap benefits such as higher productivity and better staff retention.
  2. Make a meaningful commitment to stakeholder governance: One of the foundation stones of B Corp certification is the commitment a business makes to considering all stakeholders in business decisions. Whatever foundational document governs your business, be in a constitution or your Articles of Association (documents are different in different countries), update these documents to include the B Lab purpose and stakeholder clauses.
  3. Understand your impact: This one is a little bit like the Forbes’ number 3 ‘Decide where to make a meaningful difference’ but I think it’s better broken down into two points. Understanding your impact is often where a basic materiality assessment comes in. Now, the phrase ‘materiality assessment’ can make the average person feel afraid and confused. Don’t be. It’s just a fancy way of saying ‘what impact does your business have on the world, both positive and negative?’ And every business is unique in that. For example, if you’re a chocolate bar manufacturer in France, your impact priorities might be ensuring you’re sourcing your cacao from farmers that are paid properly and are farming in a way that regenerates the natural world, rather than reduces the habitat of native species. You might also consider your packaging materials. As well, the carbon footprint of your manufacturing and transportation. Obviously, if you’re an accountancy firm in Canada, or a web developer in Thailand, your impact is going to be very different from the chocolate maker.
  4. Lock in your priorities: No business is perfect and no business can tackle everything at once. That would be overwhelming. You may want to clean up the oceans, get to net zero, drive social justice, get all staff on a living wage, boost biodiversity, get rid of all plastics in your products, reduce waste to landfill… and 101 other things but you probably can’t do it all at once. So, once you’ve assessed where your business is having its most impact – and where it can have its most positive impact – what is your team most psyched to set goals on first? And your goals might be phased, eg, ‘reduce carbon emissions by 20 per cent in the next 3 years…’
  5. Measure, monitor, mitigate: You can’t manage what you can’t measure. Once you’ve set your goals, set up the documentation that will enable you to track your performance over time. B Corp certification is all about evidencing the positive impact you’re having. Robust documentation is key. Critical! A deal breaker! I cannot stress enough about your B Corp certification being dependent on your being able to show exactly how you are increasing your positive impact with data. At Grow Good, we give our clients heaps of help with this, from recommending online tracking platforms (eg, Carbontrail, CarbonClick) to providing access to our library of more than 300 policy templates, tracker examples and much more, all designed to make your certification journey that bit easier.

So, that’s about it. If we were to add a sixth point to this list, it would be ‘Hire a B Corp consultant to help you through the process’. Like us. Obviously. It’s your choice, it’s totally up to you, far be it from me… etc etc but we think becoming a B Corp is something every business should do. Imagine the world we could build if that happened. A world where doing business regenerates the environment and drives social justice.

Become a B Corp

Here at Grow Good, we exist to coach people through the process of becoming B Corp certified.

The B Corp Impact Assessment framework  is free to access and provides dozens of useful insights and opportunities for any business but it can be confusing and overwhelming.

We are consultants who have completed the official training provided by B Lab, the organisation that runs the B Corp certification programme. We live, breathe and sleep B Corp. We are your friendly B Corp buddies. We make it easier. We translate the questions into plain English and give you a host of template policies and example documents so you don’t have to start everything from scratch or reinvent the wheel. We show you how to unlock the big point scoring areas most relevant to your business.

Are you ready to go B Corp? It’s completely your decision but if you are, and if you think it would be helpful to have a guiding hand through the process, we’re here to help. Drop us a line or jump straight in and book a free 30 min discovery call with me.

Yours in purpose,

Ngā manaakitanga,

Tamara

tamara@growgood.co

 

Why aren’t humans urgently addressing the climate crisis? We ask ChattyG

This post is the follow up to last week’s called Can AI Solve The Climate Crisis? We Ask ChattyG.
Because it turns out that ChattyG (aka ChatGPT or AI) has an excellent plan for reversing the climate emergency that is now threatening to bring about the extinction of all life on Earth. I mean, isn’t that the best news ever? We can solve the climate crisis! Oh wait, so if we have everything we need right now to sort this out, it begs the next question, why aren’t we doing it?
If we know all too well what needs to be done, why isn’t every nation on the planet pulling together and taking urgent, cohesive and galvanised action around this one single focus? Which is saving ourselves. Surely nothing else matters right now? Everything else is trivial in comparison. There are no jobs on a dead planet, no share markets, no businesses, schools, universities, hospitals, and so on. Yet what are politicians focusing on (particularly here in Aotearoa NZ in the run up to an election)? They’re campaigning on things like how they’re going to fix pot holes in the roads. It’s like arguing in the kitchen of a burning house about whether to have a floral or striped tablecloth.
In the face of such bewildering… what? Stupidity? Delusion? Denial? Inadequacy? (you choose) on the part of our human ‘leaders’, let’s once again ask ChattyG the big question: Why aren’t humans acting quickly enough to address the climate crisis?
Here’s what ChattyG had to say: The question of why humans aren’t acting quickly enough to address the climate crisis is complex and multifaceted. Several factors contribute to the relatively slow response to this urgent global issue:
  1. Lack of Awareness: Many people may not fully understand the gravity of the climate crisis, its immediate impacts, or its long-term consequences. Raising awareness and educating the public about climate change is crucial to drive action.
  2. Economic Interests: Fossil fuel industries and other sectors heavily invested in the status quo often resist change because transitioning to more sustainable practices can be economically challenging in the short term. This economic inertia can slow down progress.
  3. Political Obstacles: Climate policies can be highly divisive, with political leaders sometimes prioritising short-term interests or re-election campaigns over long-term environmental concerns. In some cases, climate denial or skepticism has played a role in delaying action.
  4. Global Coordination: Climate change is a global issue that requires international cooperation. Negotiating and implementing effective global agreements, such as the Paris Agreement, can be slow and challenging due to differing national interests.
  5. Psychological Distance: Some people perceive climate change as a distant or abstract issue, believing it won’t significantly affect them personally. This psychological distance can lead to inaction.
  6. Inequality: Vulnerable communities often bear the brunt of climate change’s effects, while those with more resources may feel less urgency to act. Addressing social and economic inequalities is intertwined with addressing the climate crisis.
  7. Technological and Infrastructural Challenges: Transitioning to renewable energy and sustainable practices often requires significant technological advancements and infrastructure changes, which can be time-consuming and costly.
  8. Human Nature: Humans are generally resistant to change, especially when it disrupts established habits and lifestyles. People may resist adopting more sustainable behaviours due to comfort, convenience, or inertia.
  9. Short-Term Focus: Many decision-makers prioritize short-term gains over long-term benefits. However, addressing climate change requires a long-term perspective that values sustainability over immediate profit.
  10. Complexity: Climate change is a highly complex issue with interconnected causes and consequences. Finding effective solutions requires navigating this complexity and implementing a wide range of policies and actions.

It’s essential to recognize that progress is being made, and there are efforts at various levels to address the climate crisis. However, the urgency of the issue calls for accelerated action, increased public awareness, political will, and widespread cooperation on a global scale. Overcoming these challenges and acting swiftly to mitigate and adapt to climate change remains one of humanity’s greatest collective tests.

I think ChattyG’s final pragmatic paragraph is a lovely way to end… it offers some hope: “It’s essential to recognize that progress is being made…” Yes. There are a lot of very determined people with brilliant minds who are working hard on this issue (sadly, few of them are politicians). Progress is being made and it is gaining momentum.

ChattyG also calls out the need for “widespread co-operation on a global scale”. This is the very reason I am a champion of the B Corp movement. B Corp is a global community of businesses that are seeking to transform our global economic system to one that values people and planet in equal measure to profit. Certified B Corps have made a commitment to no longer sacrifice people and planet for the sake of financial profit. Happily, they’re usually much more profitable for doing so, proving that true prosperity is when everybody wins – not just the one per cent.

The quicker we have a collective mindset shift on the real meaning of ‘success’ and redefine our ideas on this, the quicker we can harness the power, creativity, and innovation of the business sector to work on solving the climate crisis, rather than driving it.

Become a B Corp

Here at Grow Good, we exist to coach people through the process of becoming B Corp certified.

The B Corp Impact Assessment framework  is free to access and provides dozens of useful insights and opportunities for any business but it can be confusing and overwhelming.

We are consultants who have completed the official training provided by B Lab, the organisation that runs the B Corp certification programme. We live, breathe and sleep B Corp. We are your friendly B Corp buddies. We make it easier. We translate the questions into plain English and give you a host of template policies and example documents so you don’t have to start everything from scratch or reinvent the wheel. We show you how to unlock the big point scoring areas most relevant to your business.

Are you ready to go B Corp? It’s completely your decision but if you are, and if you think it would be helpful to have a guiding hand through the process, we’re here to help. Drop us a line or jump straight in and book a free 30 min discovery call with me.

Yours in purpose,

Ngā manaakitanga,

Tamara

tamara@growgood.co

 

Can AI solve the climate crisis? We ask ChattyG

You can’t blink at the moment without someone assailing you with all the ways in which AI is going to ‘change everything’, ‘transform that’ or ‘revolutionise this’ or ‘steal your job’ or ‘take over the world’, ‘wipe out humanity*’… that kind of thing.

(*like we need any help with that)

We’re being led to believe that AI can do everything better and quicker than us humans. From taking two seconds to provide a recipe for tofu brownies (surprisingly delicious), to creating a marketing strategy for an old dogs’ retirement home, to writing a touching love song about squirrels (you can read the squirrel love song at the end of this blog), ChatGPT, aka ChattyG, is endlessly knowledgeable.

So since humans are so profoundly screwing up the whole reversing global warming and creating equal societies thing, I wondered if ChattyG could solve the climate crisis for us? Chatty was a little reticent at first but then in nanoseconds rattled off a solution (spoiler alert, it’s a lot like B Corp), here’s what Chatty says:

“The climate crisis requires a multifaceted approach involving governments, industries, scientists, and individuals working together to reduce greenhouse gas emissions, transition to renewable energy sources, protect and restore ecosystems, and develop sustainable practices. Some key actions that can help address the climate crisis include:

  1. Transition to Renewable Energy: Moving away from fossil fuels and investing in renewable energy sources like solar, wind, and hydropower can significantly reduce carbon emissions.
  2. Energy Efficiency: Improving energy efficiency in buildings, transportation, and industries can lead to reduced energy consumption and emissions.
  3. Reforestation and Conservation: Protecting and restoring forests and other ecosystems can help absorb carbon dioxide from the atmosphere and preserve biodiversity.
  4. Promote Sustainable Agriculture: Implementing sustainable agricultural practices can reduce emissions from livestock and land use changes.
  5. Carbon Pricing: Implementing carbon pricing mechanisms, such as carbon taxes or cap-and-trade systems, can provide economic incentives for reducing emissions.
  6. Technological Innovation: Investing in research and development of clean technologies, carbon capture and storage, and sustainable transportation solutions can contribute to mitigating climate change.
  7. International Cooperation: Global collaboration is essential to address the climate crisis, as climate change is a cross-border issue that requires coordinated efforts.
  8. Education and Advocacy: Raising awareness about climate change and advocating for policy changes can drive public and political support for effective solutions.
  9. Reducing Consumer Waste: Minimizing waste and adopting sustainable consumption practices can reduce the environmental impact of production and disposal.
  10. Adaptation Strategies: Developing strategies to adapt to the impacts of climate change, such as rising sea levels and extreme weather events, is crucial for minimizing damage and ensuring resilience.

“Remember that addressing the climate crisis requires a collective effort, and solutions will vary based on regional contexts, socio-economic factors, and technological advancements. It’s important for individuals, communities, businesses, and governments to work together to make meaningful progress towards a sustainable future.”

Yep, couldn’t agree more on that last sentence, Chatty, it’s what the B Corp movement is all about.

Is it just me or does all that seem eminently sensible and straightforward? Those 10 actions are all we have to do and, bada boom, no climate crisis! No millions of climate refugees, no billions of animals, birds and insects dying from wildfires, floods, starvation or pollution, no unspeakable suffering. Easy peasy! It seems like a no brainer. I wonder why we aren’t just cracking on with it? I wonder if our politicians know about this list? Has anybody told them? I’ll drop an email to parliament…

Turns out, we know exactly how to get ourselves out of this mess, we’re just not taking the appropriate actions quickly and thoroughly enough. Why ever not? I guess that will be my next question for ChattyG, ‘why aren’t humans acting quickly enough to solve the climate crisis?’

Stay tuned for that post but in the meantime, here’s the squirrel love song (probably not gonna storm the charts, sorry ChattyG…)

 

 

(Verse 1) In a world of leaves and branches, where the trees stand tall, There’s a love story unfolding, a tale to enthrall. Two squirrels in the forest, their hearts in a whirl, In the dappled sunlight, they’re our squirrel lovebirds.

(Chorus) Oh, it’s a squirrel’s delight, under the moonlight, In this treetop romance, they’re taking flight. With their fluffy tails entwined, in the softest pines, This love story of squirrels, it forever shines.

(Verse 2) Through the canopy they chase, so nimble and spry, In their eyes, there’s a sparkle, a twinkle, a sigh. They gather acorns and dreams, under the azure sky, In this squirrel’s haven, love’s soaring high.

(Chorus) Oh, it’s a squirrel’s delight, under the moonlight, In this treetop romance, they’re taking flight. With their fluffy tails entwined, in the softest pines, This love story of squirrels, it forever shines.

(Bridge) They build a nest of dreams, where love’s song is heard, Among the rustling leaves, their hearts take flight like a bird. In each other’s embrace, they find their sweet reprieve, In this squirrel love song, they truly believe.

(Verse 3) Through all seasons they dance, in autumn’s golden hue, In winter’s cozy embrace, their love stays true. In spring, they find blossoms, in summer, the shade, This squirrel’s love story, in every way, is well-played.

(Chorus) Oh, it’s a squirrel’s delight, under the moonlight, In this treetop romance, they’re taking flight. With their fluffy tails entwined, in the softest pines, This love story of squirrels, it forever shines.

(Outro) So let’s raise a toast, to our squirrel friends above, In the heart of the forest, they’ve found a lasting love. In this woodland serenade, let’s all be inspired, By the love story of squirrels, forever admired.

Why Kiwis buy sustainable products and services… and why they don’t

What’s driving the Kiwi consumer to buy sustainable products and services? And what are the barriers to purchasing?

This was a big focus in the latest NZ State of the Nation consumer outlook report Q2 2023 by NeilsenIQ. The report considers sustainability a key market trend as the impacts and costs of climate change are increasingly felt across society.

For sustainable brands and B Corps, there are some interesting insights to glean, so we’ve summarised a few points here.

First up, 76% of Kiwis surveyed believe climate change and sustainability are linked and 54% of these people say that sustainability has become more important in the last two years.

Why do Kiwis believe sustainability has become more important? According to this report, it’s because 69% say they see the impact of climate change in the news regularly.

As well,

  • 57% say that leaving a liveable world behind for future generations has become more important.
  • 52% believe products and services have become more expensive because of extreme climate events.
  • 41% are noticing more pollution and waste in their surroundings.
  • 36% feel their personal health and safety could be impacted by climate change.
  • 48% feel more informed about climate change and sustainability.

Business has to step up

Another telling figure is that 64% of people believe it is very important for companies to take the initiative to reduce their environmental footprint. In the same vein, it’s sustainable packaging claims that most resonate with consumers (aka ‘people’).

The study found that people are more likely to buy sustainable if it had a benefit for their health or the planet. As well, more than 70% of people would most likely stop purchasing a brand that was found guilty of greenwashing. Let that sink in. More than 70% of people would most likely stop purchasing a brand that was found guilty of greenwashing.

What were the barriers to people living a more sustainable life? Three things: cost, limited choice, and confusing messaging.

So, if a sustainable product was seen as too expensive, 56% of those surveyed would not buy it. How do you address this if you’re a sustainable brand that costs more than cheaper, unsustainable alternatives? Justify and explain why it costs more. As well, be clear with your messaging and information because 28% of people say they don’t buy sustainable products because the messaging isn’t clear.

So how to move forward as a sustainable brand?

This survey suggests several actions:

  • Ensure your range offers value to help ease the on-going pressures consumers are feeling; optimise your pricing and promo strategies.
  • Be the consumers’ choice by offering a unique experience and/or value proportion – in other words, prove your worth against the competition.
  • Resonate with the consumer using clear messaging on what is sustainable about your product and how it benefits them.

Sustainability is a key future theme

Sustainability is here to stay as a key market trend. This is only going to grow. Why?

The impacts and costs of climate change are being felt across society.

From 1980 to 1999, there were 3656 climate related disasters that cost $1.63 trillion to address. From 2000 to 2019, these figures almost doubled, with 6682 climate-related disasters costing almost $3 trillion to address.

Governance and cost will accelerate this shift beyond consumer demand.

There are 3 key forces driving business to change

  1. Role of governance and mandates: Financial reporting requirements, sustainable investments, fines and taxes, new legislations.
  2. Exploding costs due to the impact of climate change: Rising energy prices, rising cost of goods, supply chain disruption.
  3. Escalating consumer demand: Cost of living stress, personal impact, availability of choice, shifting values and attitudes.

Around the world, countries are at very different stages of sustainable progress. Some markets have fallen back to carbon intensive habits to recharge economies while other have ramped up investment in renewable energy. Top five green leaders are Iceland, Finland, Norway, Denmark and Sweden. While the bottom five are Bangladesh, Qatar, Zambia, Algeria, and Iran.

New Zealand sits just below the middle of the spectrum, dragging the chain a little, which relegates the nation to the ‘climate laggards’ section.

We need to lift our game in a big way. We can’t wait for government to act (but we still need to push them on that). The business sector has the resources, initiative and creativity to find solutions to the world’s biggest problems. Let’s get on with it.

One route is by becoming a B Corp business.

Become a B Corp

Here at Grow Good, we exist to coach people through the process of becoming B Corp certified.

The B Corp Impact Assessment framework  is free to access and provides dozens of useful insights and opportunities for any business but it can be confusing and overwhelming.

We are consultants who have completed the official training provided by B Lab, the organisation that runs the B Corp certification programme. We live, breathe and sleep B Corp. We are your B Corp buddies. We make it easier. We translate the questions into plain English and give you a host of template policies and example documents so you don’t have to start everything from scratch or reinvent the wheel. We show you how to unlock the big point scoring areas most relevant to your business.

Are you ready to go B Corp? It’s completely your decision but if you are, and if you think it would be helpful to have a guiding hand through the process, we’re here to help. Drop us a line or jump straight in and book a free 30 min discovery call with me.

Yours in purpose,

Ngā manaakitanga,

Tamara

tamara@growgood.co

 

Are you Ready to B Better?

Ready to take the plunge towards becoming a B Corp business? Let the Grow Good team guide you through the process either through 1:1 coaching or group coaching on one of our regular cohort programmes for micro businesses. Book a 30-min discovery call with Tamara here.

You can use your Business as a Force for Good.

Just get started. Take the first step. Get in touch

Empowering Success: The Case for Implementing Employee Ownership

In the world of B Corp, there are significant points to be scored from adopting some kind of employee ownership scheme in your business model.

But it’s not just about point scoring. As well as boosting your score on your B Impact Assessment (BIA), the benefits of giving employees ownership in the company, drives enhanced productivity, greater commitment, more resilience, and better talent recruitment and retention.

So what’s it all about? This article takes a look at the what, why and how of worker ownership models.

What are employee share ownership plans (ESOPs) and how do they factor into B Corps?

Employee share ownership plans (or ESOPs) are a legal agreement that allow employees to receive and earn ownership in the business that they work for. They are a clearly defined pathway for employees to become shareholders and to benefit from the success of the company that they contribute to.

“There’s no better way to tune people in to creating value than to make them shareholders… I do know it gave our people more understanding and a sense of responsibility for what was going on in the company… in my view it’s a win-win.” David Thodey – Chair of the Board, Xero

Different types of ESOPs exist and are best suited for different businesses, so it’s important to understand which option is best for you. 

If you hang out in B Corp world, you probably know that companies score more points for having some kind of employee share ownership plan (ESOP).

And if your company meets the criteria for the Worker Owned Impact Business Model, it’ll bag you up to 30 points in the B Impact Assessment, which is a big bite of the 80 points required to get B Corp certified. 

As well, research shows that companies with significant employee ownership grow faster than their conventionally-owned counterparts. 

Still though, if you’re a business owner who has done the hard yards to build your company up from nothing, it can seem like a big ask to then just hand over ownership of that company to employees. 

Even when you see the research, which shows that companies with significant employee ownership tend to get boosted productivity, enhanced loyalty, and ultimately greater long-term success. 

Still, for a conventional company, the idea of shifting to an employee ownership model can seem confusing and complicated. So why would you? There are a few reasons:

THE PROS OF ESOPS

Employee ownership is about granting employees a financial stake or ownership interest in a company. This can take various forms, including share options, profit sharing, or direct share ownership. The goal is to align the interests of employees with those of the organisation, creating a sense of shared purpose and mutual benefits. Benefits of adopting it include:

  • Enhanced Employee Engagement and Commitment

Implementing employee ownership can significantly enhance employee engagement and commitment. When employees become partial owners of the company, they have a personal stake in its success. This sense of ownership can drive employees to go the extra mile, leading to increased productivity and dedication to their work. Furthermore, as owners, employees are more likely to take a long-term perspective and actively contribute to the organisation’s growth and profitability.

  • Retention and Recruitment of Top Talent

Employee ownership programs can serve as a powerful tool for attracting and retaining top talent. In a competitive job market, prospective employees are increasingly seeking organisations that offer opportunities for growth, financial incentives, and a sense of purpose. Employee ownership provides all these elements. It signals to potential candidates that the company values its employees and rewards their contributions. Additionally, existing employees are more likely to stay with an organisation that offers them a chance to share in its success.

  • Improved Productivity and Innovation

Ownership fosters a culture of accountability, empowerment, and innovation. When employees have a say in decision-making and are directly affected by the outcomes, they are more motivated to perform at their best. Employee owners often take on an entrepreneurial mindset, proactively identifying opportunities for improvement, and suggesting innovative solutions. As a result, organisations that embrace employee ownership often experience a surge in productivity and a competitive edge in their respective industries.

  • Long-Term Sustainability and Stability

Implementing employee ownership can contribute to the long-term sustainability and stability of a business. As owners, employees are more likely to take a vested interest in the company’s success, leading to increased loyalty and lower turnover rates. This continuity translates into cost savings associated with recruitment, onboarding, and training. Moreover, employee-owned companies tend to have more robust financial performance, as employees are personally invested in the business’s success.

  • Healthy Corporate Culture and Trust

Employee ownership can foster a positive organisational culture and build trust among employees. Employee owned companies typically pay more, are less likely to lay people off in a downturn, and they build community wealth. When individuals feel valued, respected, and trusted, they are more likely to collaborate, share knowledge, and work towards common goals. Transparency in sharing financial information and involving employees in decision-making processes creates a culture of open communication and inclusivity. This culture of trust nurtures a supportive environment where employees feel motivated to contribute their best efforts.

By aligning the interests of employees with those of the company, organisations can foster a culture of ownership, collaboration, and shared success. As businesses navigate the evolving landscape, employee ownership serves as a powerful tool to unlock the full potential of their workforce and secure a prosperous future.

TYPES OF EMPLOYEE OWNERSHIP

There are three main types of employee ownership structures that companies can adopt. Here are some common types:

  1. Share Options: Share options are agreements that give employees the right to purchase company shares at a predetermined price (the exercise price) within a specified period. They often have a vesting period, and employees can exercise the options to acquire shares once they become vested. This allows employees to share in the company’s value appreciation.
  2. Phantom Shares: Phantom shares is a form of equity-based compensation where employees are granted hypothetical or notional units that mirror the value of the company’s stock. Employees receive cash payments equivalent to the increase in the stock’s value over a certain period, without actually owning the shares. This is similar to a formalised profit-sharing agreement
  3. Loan to purchase plans: this is a structure that allows employees to acquire shares in the business they work. The company will usually issue a zero or low-interest loan to the employee to pay for the shares upfront. Over time, based on a variety of ways such as dividend distributions, cash contributions and salary sacrifice the loan to the company is paid down and the employee owns the shares outright.

Each type has its own specific characteristics and benefits, and companies can choose a structure that aligns with their goals and the needs of their employees. It’s important to consult with legal and financial professionals to understand the specific details and implications of each type of employee ownership.

HOW TO SWITCH TO EMPLOYEE OWNERSHIP

It’s a lot easier than most people think.

To begin, the initial step is to determine the most suitable employee share scheme for your business. We strongly advise consulting with your professional advisors, such as lawyers or accountants, as a first step. This ensures that you select the optimal scheme to achieve your desired outcomes and are well-informed about the various tax implications involved. It’s important to get this right, and experts such as Orchestra have resources to guide your decision.

Orchestra is one of Australasia’s leading employee ownership softwares, providing a two-sided portal which enables companies to streamline the management process of the ESOP and even more importantly provides an online portal for ESOP participants to login to interact and engage with their ESOP.

Once you have made a decision on the approach, the allocation of the ESOP pool takes place. Typically, this pool represents around 5-15% of the total shares in the company, although it depends on the stage of the business. Employees then engage in negotiations regarding their ESOP and can utilise tools like Orchestra to effectively manage and monitor their progress towards ownership.

Employee Share Schemes can be intricate and challenging to maintain. So it’s important to have a dedicated management tool, providing employees with complete transparency regarding the benefits they accrue over time.

THE BASICS OF B CORP

What is a B-Corp certified company?

Certified B Corporations are businesses that meet the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose. B Corps are accelerating a global culture shift to redefine success in business and build a more inclusive and sustainable economy. In essence, they are businesses which undergo an independent process of certifying the ongoing improvement of their environmental and social impacts.

What are the advantages of being a B-Corp company?

What are the benefits of becoming a B Corp? There are just so many! Where do we start? Okay let’s start with these six gooduns.

  1. Recruitment: B Corps attract the best talent and have better staff retention.
  2. Profitability and competitive edge: Empirical data shows that B Corps are making more money than non-B Corps in their industry. As well, B Corps proved more resilient through the pandemic.
  3. Brand loyalty: More customers want sustainable brands and are voting with their wallets.
  4. Access to capital: Investors are now demanding businesses they give money to have transparency on their ESG.
  5. Cost savings: By scrutinising their operations, B Corps have found innovative ways to significantly cut costs.
  6. Legislation-proof: Have you noticed the raft of new ESG legislation that’s been passed all over the world? Becoming a B Corp means you’re not going to be left behind.

Why we are seeing more companies in NZ and Australia becoming B-Corps?

More than 600 companies across Aotearoa New Zealand and Australia are Certified B Corporations, representing industries from accounting to waste management. There are many drivers of this growing interest but in the main, business owners have read the writing on the wall. The old way of doing business is extractive, destructive and unsustainable. A new low carbon economy is fast emerging as the world gets to grips with solving the unprecedented challenges of the climate crisis and a population approaching 10 billion. 

While the business world has driven much of this destruction, the business world is also the only sector that has the innovation, creativity and resources necessary to quickly find and scale the solutions.

Ultimately, business owners and employees are just people. And most people don’t want to trash their planet and their communities. They want to see their children and grandchildren thrive. This is also driving the growth of the B Corp movement because certification offers businesses an ESG roadmap. Most people want to be part of the solution they just don’t know how. B Corp shows them how.

What is the process involved? How long does it take?

B Corp certification is a positive screening tool. In other words, you score points for the good you’re doing, for example, treating your staff fairly, supporting disadvantaged groups in your community, or helping regenerate the environment. 

The types of companies that are interested in a certified B-Corp are probably already demonstrating some kind of ongoing impact in social and environmental improvement, so they may be closer to being B-Corp certified than they think!

In terms of timeline, it varies depending on the number of new initiatives a business decides to adopt and how much effort they require. As a rule of thumb, expect it to take 12 to 18 months, depending on the size and complexity of the business.

The first step is to have a conversation with a group or consultant that know what they’re talking about, such as the team at Grow Good, who offer free health-checks to better understand what would be involved in getting your business B-Corp certified.

Would you like help with that?

Here at Grow Good, we exist to coach people through the process of becoming B Corp certified.

The B Corp Impact Assessment framework  is free to access and provides dozens of useful insights and opportunities for any business but it can be confusing and overwhelming.

We are consultants who have completed the official training provided by B Lab, the organisation that runs the B Corp certification programme. We live, breathe and sleep B Corp. We are your B Corp buddies. We make it easier. We translate the questions into plain English and give you a host of template policies and example documents so you don’t have to start everything from scratch or reinvent the wheel. We show you how to unlock the big point scoring areas most relevant to your business.

Are you ready to go B Corp? It’s completely your decision but if you are, and if you think it would be helpful to have a guiding hand through the process, we’re here to help. Drop us a line or jump straight in and book a free 30 min discovery call with me.

Yours in purpose,

Ngā manaakitanga,

Tamara

tamara@growgood.co

 

Are you Ready to B Better?

Ready to take the plunge towards becoming a B Corp business? Let the Grow Good team guide you through the process either through 1:1 coaching or group coaching on one of our regular cohort programmes for micro businesses. Book a 30-min discovery call with Tamara here.

You can use your Business as a Force for Good.

Just get started. Take the first step. Get in touch

Why B Corp is a home run

What are the benefits of becoming a B Corp? Crikey, there are just so many! Where do we start? Okay let’s start with these six gooduns.

  1. Recruitment: B Corps attract the best talent and have better staff retention
  2. Competitive edge: Empirical data shows that B Corps are making more money than non-B Corps in their industry. As well, B Corps proved more resilient through the pandemic.
  3. Brand loyalty: More customers want sustainable brands and are voting with their wallets
  4. Access to capital: Investors are now demanding businesses they give money to have transparency on their ESG
  5. Cost savings: By scrutinising their operations, B Corps have found innovative ways to significantly cut costs
  6. Legislation-proof: Have you noticed the raft of new ESG legislation that’s been passed all over the world? Becoming a B Corp means you’re not going to be left behind.

But don’t take our word for it, here are some real world examples of how it pays to become a B Corp business…

Nespresso CEO says its B Corp certification is helping it attract talent

“The main benefit of being a B Corp—and I didn’t expect it—is from the inside,” Nespresso CEO Guillaume Le Cunff says in a recent interview. “We brought 14,000 people across the world along in our journey. You will see it in the signature of people. To attract talent, this is part of the conversation. Any young talent interested in Nespresso, will browse and will see the B Corp label.”

https://uk.finance.yahoo.com/news/nespresso-ceo-says-b-corp-051714242.html

Smallhold CEO says becoming a B Corp allowed them to quantify their positive impact and explain it to the public

We barely changed anything about Smallhold to become a B Corp,” says Andrew Carter, CEO and Co-Founder of Smallhold, an organic mushroom farming business. “We were doing all of these things already. Paying living wage, energy efficiency, circularity, sustainability, it is in the DNA of what we do, it always has been. The B Corp process has allowed us to quantify it, explain it to the public, and find ways to improve in the years to come.

“Becoming a certified B Corporation is an ongoing journey. We’re continuously working to hold ourselves accountable, which means there’s a constant need of evaluation, adaptation and collaboration— and it’s a path worth pursuing.”

https://www.forbes.com/sites/christophermarquis/2023/07/12/the-future-of-fungi-smallhold-sets-new-standards-for-farming-with-b-corp-certification/

The Body Shop asked a group of Gen Zers to critique the company – and it improved the business

The Body Shop came up with an innovative way to integrate Gen Zers into the decision-making at the company by creating a youth board of advisors. This falls in line with the B Impact Assessment’s focus on engaging with all the stakeholders in a business.

Realising that while it was encouraging global leaders to embrace young voices, the British multinational beauty retailer was not actually doing this themselves. So The Body Shop addressed this gap by creating a secondary board (or as the brand calls it, a Youth Collective) to advise its leadership team. But on this one, no over 30s are allowed to join.

https://finance.yahoo.com/news/body-shop-asked-group-gen-092415743.html

Embracing The B Corp Journey

The process of becoming a B Corp certified business makes the people who run a business, and who work for a business, pause for a moment to step back and take stock. It encourages people to ask themselves questions like, ‘why do we do what we do?’ ‘What kind of impact is our business having in the world – both positive and negative?’ ‘How do we increase the positive impact we’re having?’

It is a ‘rigorous but achievable’ process. This is one of our favourite phrases at Grow Good – ‘rigorous but achievable’. It’s become our mantra. Because the journey to becoming B Corp certified is not meant to be easy. It is meant to spark discussion, debate and reflection. It is meant to stretch you. It’s meant to get you asking questions about what you do; why you do it and how you’re doing it. Mainly though, it’s meant to get you thinking about how you can genuinely drive more positive impact in the world. And it’s meant to turn you into a better, more prosperous business.

Would you like help with that?

Here at Grow Good, we exist to coach people through the process of becoming B Corp certified.

The B Corp Impact Assessment framework  is free to access and provides dozens of useful insights and opportunities for any business but it can be confusing and overwhelming.

We are consultants who have completed the official training provided by B Lab, the organisation that runs the B Corp certification programme. We live, breathe and sleep B Corp. We are your B Corp buddies. We make it easier. We translate the questions into plain English and give you a host of template policies and example documents so you don’t have to start everything from scratch or reinvent the wheel. We show you how to unlock the big point scoring areas most relevant to your business.

Are you ready to go B Corp? It’s completely your decision but if you are, and if you think it would be helpful to have a guiding hand through the process, we’re here to help. Drop us a line or jump straight in and book a free 30 min discovery call with me.

Yours in purpose,

Ngā manaakitanga,

Tamara

tamara@growgood.co

 

Are you Ready to B Better?

Ready to take the plunge towards becoming a B Corp business? Let the Grow Good team guide you through the process either through 1:1 coaching or group coaching on one of our regular cohort programmes for micro businesses. Book a 30-min discovery call with Tamara here.

You can use your Business as a Force for Good.

Just get started. Take the first step. Get in touch

Get your head around ESG now to unlock a huge advantage

Big news! Mandatory ESG reporting is coming to Australia next year (2024) for large companies and financial institutions.

This makes our Aussie neighbours the latest in a rapidly-growing chain of nations that are introducing some form of mandatory ESG (Environmental, Social, and Governance) reporting requirements.

In the UK, more than 1,300 of the largest UK-registered companies and financial institutions have had to disclose climate-related financial information since April 2022 – in line with recommendations from the Task Force on Climate-Related Financial Disclosures (TCFD). This made Britain the first G20 country to enshrine in law mandatory TCFD-aligned requirements. The law impacts many of the UK’s largest traded companies, banks and insurers, as well as private companies with over 500 employees and £500 million in turnover.

The same rumblings are happening in the US, the European Union, Japan, Canada, South Africa, and more.

Here in Aotearoa New Zealand, mandatory ESG reporting was implemented six months ago in January 2023. Currently, this only impacts about 200 Kiwi businesses but it is a sign of things to come for all businesses as the world picks up the pace in order to meet international obligations and the target of net zero carbon by 2050.

Presently, the majority of large financial organisations provide limited to no information on what climate change might mean for them or are reporting in inconsistent ways. The goal of mandatory climate-related disclosures is to:

  • ensure that the effects of climate change are routinely considered in business, investment, lending and insurance underwriting decisions
  • help climate reporting entities better demonstrate responsibility and foresight in their consideration of climate issues
  • lead to more efficient allocation of capital, and help smooth the transition to a more sustainable, low emissions economy.

Mandatory ESG reporting for all businesses is now a matter of ‘when’ not ‘if’. And like the match that starts a fire, this will spark other shifts in the market place, in fact this is already happening.

More businesses, organisations and local councils, are looking to clean up their supply chains and improve their own impact reports by giving preference to doing business with companies that can demonstrate they’re on top of their own ESG monitoring and reporting. Businesses that can verify their sustainability claims, through a certification such as B Corp, will have a powerful market advantage. We wrote about this in an earlier blog called New EU corporate due diligence law is a big deal… and opportunity

So one thing you can do to get ahead of the raft of legislation changes that are on the way is to use the B Corp Impact Assessment framework.

This framework is free to access and provide dozens of useful insights and opportunities for any business.

But if you find it a bit complicated and would benefit from some help, just ask. We are consultants who have completed the official training provided by B Lab, the organisation that runs the B Corp certification programme. We live, breathe and sleep B Corp.

You can use your Business as a Force for Good.

Just get started. Take the first step. Get in touch.

 

Yours in purpose,

Ngā manaakitanga,

Tamara

tamara@growgood.co

 

Are you Ready to B Better?

Ready to take the plunge towards becoming a B Corp business? Let the Grow Good team guide you through the process either through 1:1 coaching or group coaching on one of our regular cohort programmes for micro businesses. Book a 30-min discovery call with Tamara here.

Why Hollywood is talking B Corp

You know that B Corp is a ‘thing’ when mega Hollywood celebs are talking about it.

Hot off the presses of Vogue magazine this week is the news that Angelina Jolie has partnered with luxury fashion brand Chloe because that brand is a B Corp.

Let me repeat that with the emphasis on the word ‘because’.

Jolie has partnered with luxury fashion brand Chloe BECAUSE that brand is a B Corp.

Yep, that’s right. Angelina Jolie loves B Corps. The fact that Chloe is a B Corp is what sealed the deal. Here at Grow Good, you’ll often hear us banging on about how becoming a B Corp opens doors for your business and creates new opportunities. Case in point.

“Very few luxury brands are a certified B Corp,” said Jolie in a statement announcing the collaboration. “It was important to me to work with Chloé, one of the first luxury brands to be a B Corp,” Jolie said.

In a nutshell, Jolie has launched a new fashion brand, Atelier Jolie, and she’s teamed up with Chloe to launch a women’s wear capsule collection.

“My earnings from this collaboration will be invested in establishing apprenticeships for tailors and artisans at Atelier Jolie,” Jolie said.

For those not up with their fashion jargon, a capsule collection is a small collection of clothing composed of classic, easily interchangeable items designed to maximise the number of outfits that you can create. The idea of a capsule collection is to create a variety of different looks with a minimal selection of clothes. It’s so B Corp.

According to the press statement, the collection of mostly eveningwear will feature fluid silhouettes inspired by Jolie’s wardrobe. Some pieces highlight the work of artisans from a Fair Trade enterprise and spotlight female-led social enterprises; others are made from deadstock and lower-impact materials.

Jolie launched Atelier Jolie as a collaborative brand in May 2023, which she said would ‘facilitate working with tailors, pattern-makers and artisans globally; only use leftover vintage material and deadstock; and spotlight everyone involved in the process’. YEEEESSSS Ange! Nice one. Way to go.

So with any luck, Atelier Jolie will also be seeking B Corp certification soon (after completing their first year of operations). We’re holding our breath for that here at Grow Good Towers.

Sure, the B Corp movement already has a few celebrities involved with B Corps, for example, there’s TV chef Jamie Oliver in the UK whose company is a B Corp, and actress Jennifer Garner co-founded Once Upon a Farm, a B Corp that makes cold-pressed, organic fruit and veggie blends for babies. But there is plenty more room for celebs to show the way in the B Corp movement. We’re all up for that type of celebrity endorsement if it helps boost awareness of making business a force for good.

Will Angelina Jolie be the first Hollywood mega-star to head up a B Corp company? Watch this space.

 

Kia kaha

Tamara

PS Do you know of any local or national celebs involved with B Corps? Let us know in the comments!

 

tamara@growgood.co

Are you Ready to B Better?

Ready to take the plunge towards becoming a B Corp business? Let the Grow Good team guide you through the process either through 1:1 coaching or group coaching on one of our regular cohort programmes. Book a 30-min discovery call with Tamara here.