Time and again, it has been proven that no single entity can solve
society’s most challenging and most pressing problems. Even the so called
“whole-of-government” approach is not enough to address all societal issues
that plagued a country. What is needed is a “whole-of-nation” approach- one
that integrates all efforts of government, non-government, profit, and
non-profit sectors to respond to these issues. B Corporations is one of the
private sectors responses to this need.
B Corporations are businesses that meet the highest standards of social
and environmental performance, public transparency, and legal accountability to
balance profit and purpose. They are spearheading a shift in global culture to redefine
business success and build a more inclusive and sustainable economy. They are
working together towards the reduction of inequality, alleviation of poverty,
lowering unemployment, promotion of a healthier environment, and building strong
and resilient communities by harnessing the power of business. Using profits and
growth, they strive to achieve positive impact to the people, communities and
the environment. In the Philippines, HOPE (Generation Hope) is currently
leading the movement towards making businesses socially and environmentally
responsible guided by its mission “to empower every Filipino to
participate in the advancement of a social good”. So far, it is the
only Philippine company to donate 100% of its profits to the building of public
school classrooms.
In many countries, being certified as a Benefit Corporation affords a
company legal protection by allowing its directors and officers to balance
financial and non-financial interests when making business decisions- something
that is not available under traditional corporate law. Being a Benefit
Corporation helps a company improve its brand image, attract talent and impact
investment capital. It also allows it to develop partnership with other
like-minded businesses and organizations. As societies, especially consumers
become more socially and environmentally conscious, being a B Corporation can
be a great marketing tool because of the “impact” it promises to deliver. HOPE
for example was able to build many classrooms across the country through its
profits derived through its strong partnerships with retail stores, restaurants
and food chains. The brand has attracted the support of celebrities who promote
the product for free or at a lesser fee. More and more business entities are
bringing in HOPE bottles to their shelves and shops because they believe in
what it stands for. This means that the business is actually earning while
doing good.
Being a B Corporation is
not easy. Assessments take time, money and other resources. B Corporations are
new to Philippines’ business world; hence, many are still skeptic about it and
it may time a long time to get the support and commitment all stakeholders
in the company (the employees, customers and shareholders). It is bound to face
many challenges including institutional resistance. Legislation will also have
to catch up. Being a B Corporation puts considerable pressure to the company
who has to live up to its ideals and expectations from the public. It also
entails additional costs to the company especially in making its systems,
processes and other operational aspects environmentally compliant or sound. Its
decision -makers are required to consider the impact on not only their
shareholders, but also non-financial interests, such as the community, the
local and global environment, and the company’s employees, suppliers and
customers when making decisions. It must always think of the long-term benefits
to the people and planet rather than the company’s profit alone. Failure to pursue
its publicly stated benefit mission could expose its leadership to public
scrutiny and could possibly trigger legal issues. The company becomes more
accountable to the people especially to its clientele.
