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.