B Corp™ – making purpose part of a companies DNA

Imagine if the interdependencies between corporations, community and society at large could be recognised at law. Imagine if we could redefine what success looks like for a company and allow owners, shareholders and directors to work together to achieve that success.

That is the aim and intention of the B Corp movement. In Australia, as well as providing a framework for organisations to model and assess the social health of their organisations, B Corp Australia are working toward having the concept of a benefit corporation recognised at law. While Australia has the ability to incorporate for purpose, a change of law is required to ensure that purpose can be embedded into the DNA of for profit companies.

We all know that the market has changed and consumers and employees are demanding companies be clear on their purpose and remain committed to delivering that purpose. Without legal changes to allow a director to consider this purpose when making decisions about the future and to put shareholders and investors on notice about the broader focus of the company, there is always a risk that maximising profit will take precedence without proper regard to purpose and that this decision will be justified on the basis of delivering financial value. Lynette and Michele at Social Atlas believe it is possible to deliver financial value by making decisions that further a companies purpose and the move to recognise this at law is exciting.

Until then we will continue to support those initiatives that are already making purpose a part of how good business does business well – the B Corp Accreditation process and the growth and creation of shared value.

Click here to read about the push for legal status in Australia.

To find out more about B Corp Australia visit their website here or contact us.

Creating Shared Value – a model working for farmers, corporations and society

Social Atlas client Clinton Giustra Enterprise Partnerships CGEP, provides a practical example of how shared value initiatives can deliver powerful positive outcomes for farmers, corporations and society.

Lynette and the rest of the Social Atlas team have had the pleasure of working closely with Mark Gunton, CEO of CGEP as they expand their approach into Asia.  This interview with Mark is a gGood Magazinereat way to understand more of what they are working on.  In it Mark notes that the CGEP approach ensures that infrastructure is created and the skills, growth and opportunities are long term and scalable.  The benefits that flow to farmers as well as the corporations who require certainty and quality in their key ingredients purchased within this system need to be sustainable and reliable. “There are massive opportunities for social impact in gaps in the local economy. We fill these gaps by launching our own enterprises that bring thousands of small farmers and entrepreneurs into high-value markets. We do this in a way that is sustainable and self-scaling. All profits are recycled to grow an enterprise or create new ones.”

As you read about what CGEP are achieving in the context of Root Capital’s Issue Brief – Investing in Resilience: A Shared Value Approach to Agricultural Extension,  you can see why Mark Kramer is excited about the opportunity in this area.  Read the Brief here.

For more information on the CGEP approach or its expansion into Asia please contact us.