Work Like a B Corp: Genuine Corporate Social Responsibility Strategies to Try Now
How to Incorporate Purpose Throughout Your Organization
Your company seems to have it all — in-demand products or services, a workforce that feels like family, inspiring leadership, and plans for sustainable growth in the years to come.
And yet energy feels low. Employee engagement has waned. Leads are going cold. Inbound job applications are a trickle rather than a stream. Something is missing.
If that “something” missing is a higher purpose, then it’s time to take action. What your company needs is a framework to start using business as a force for good; it’s time to focus on corporate social responsibility (CSR), stat.
The fact is, we want to contribute to something greater than ourselves — and that affects the way we interact with businesses as employees, as consumers, and as investors. Almost 85% of millennials in the workforce believe making a positive difference in the world is more important than professional recognition. Consumers experience enhanced customer satisfaction and feelings of loyalty when companies demonstrate a genuine CSR strategy. And 83% of investors are more likely to invest in a business well-known for its social responsibility.
If your organization is struggling to imbue positive impact into its everyday operations, learn from the movement of for-profit companies that use business to solve society’s most pressing issues: Certified B Corporations.
In this article, we’ll explain how working like a B Corp translates to a higher rate of success when it comes to achieving CSR goals. We’ll take a closer look at what it means to be a B Corp and translate B Corp best practices into directly applicable CSR frameworks that your business can (and should) try. As we’ve said before, it may not be easy to become a B Corp, but with a little dedication you can get the ball rolling on CSR initiatives in no time.
What Is Corporate Social Responsibility?
“Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially accountable — to itself, its stakeholders, and the public.” — Investopedia.com
Companies of any size can use business for good, but CSR is typically a strategy for large companies that have grown their businesses to a point where they can focus on giving back to society. Broadly speaking, CSR programs are a way for these companies to publicly commit to — and be held accountable for — creating a positive impact on the world.
CSR is one means of practicing corporate citizenship (the understanding that companies have an impact on their local communities and economy, and therefore are responsible for doing the right thing). By engaging in corporate social responsibility, companies can be good corporate citizens.
CSR initiatives fall under many buckets, including environmental impact, equality, and philanthropic and charitable giving. But why exactly do corporations practice CSR?
One reason is that it simply makes business sense. CSR initiatives can align a business’s purpose and values with its social and environmental impact and result in something truly magical: purposeful work, more engaged employees, and even higher profitability. (According to Forbes, companies that engage in CSR have higher profit margins, higher valuations, and lower risk than those that do not.)
Yet this shouldn’t be the only reason companies engage in corporate citizenship. In fact, studies have shown that a company’s CSR efforts can have an ineffective or negative impact on consumers and employees, respectively, if they are seen as self-serving.
It seems that, in a world where issues like rising inequality and rampant climate change go hand in hand with an unparalleled access to information, sustainable development is top of mind for all global citizens — and that’s affecting the way we do business.
How a B Corp Value System Can Help Your Company Achieve Its CSR Goals
As mentioned above, CSR initiatives can backfire if they’re disingenuous. For that reason, it’s important for your company to weave its dedication to good throughout the business structure — the B Corp way.
The B Corp certification process is arduous (about 33% of companies that apply will achieve certification) and requires a commitment to balancing profit and purpose. B Corps must meet the highest standards of social and environmental performance, public transparency, and legal accountability. The nonprofit B Lab — the governing body behind the B Corp movement — certifies businesses based on how they score on a rigorous test called the B Impact Assessment. Unlike traditional corporations, B Corps have a legal obligation to consider how their actions impact their workers, customers, suppliers, community, and the environment.
After months of thorough vetting, companies can receive their B Corp badges by signing off on a final document: The B Corp Declaration of Interdependence. By pledging allegiance to this value system, businesses demonstrate commitments to the B Corp mindset across all business operations — from corporate governance to supply chain processes.
To kick off a CSR strategy at your organization, begin by evaluating if/how your current corporate code aligns with these core values. You don’t need to completely reinvent your company’s hallmark product or service to be a good corporate citizen — but if you make like a B Corp and thread these values into your business structure, your CSR strategy is far more likely to succeed.
Ready to start thinking like a B Corp? Let’s get started.
Build a Workplace Employees Are Proud of
B Corps understand the value of employees and are committed to creating a workplace that ensures their ongoing success, happiness, and well-being. Employees are key stakeholders, after all!
Building a workplace environment worthy of pride isn’t limited to treating workers with respect; it means organizationally committing to a high standard of ethics. To avoid a CSR strategy that rings hollow, your company should adopt an ethical code in its value system and mission statement.
Take a page from the B Corp book and consider making these changes to build a workplace your employees are proud of:
- Weave ethics, purpose, and sustainability into your corporate mission.
- Take a stance on social issues and speak out against social injustice.
- Promote an equitable workplace by offering job training programs or internships to marginalized or underrepresented communities.
- Commit to diversity in the workforce across race, gender, and sexual orientation.
- Offer all employees a living wage, healthcare, and ample paid time off.
- Give employees sustained growth, training, and learning opportunities.
Encourage a Culture of Giving Back
Civic engagement and giving are two ways that B Corps ensure their positive impacts on local communities.
If your company doesn’t already directly support underserved communities, charitable giving and volunteering are two easy CSR strategies to implement. Charitable giving ensures that support goes to those who need it the most, and volunteering is a great way to get involved and leads to higher levels of employee happiness and engagement.
Here are some ways you can create a culture of giving back:
- Donate a portion of companywide revenue to nonprofit organizations.
- Coordinate charitable giving opportunities for employees, and match employee contributions.
- Encourage employees to give back and participate in the community by offering paid time off to volunteer at nonprofits or work at polling places.
- Recognize a National Day of Service (Martin Luther King Jr. Day or 9/11, for example) for the organization to spend volunteering together.
- Create and fund scholarships for underserved populations.
Do No Harm in Your Supply Chain
B Corps source, manufacture, and partner responsibly (these five B Corps in particular enforce high sustainability standards for their supply chains) — and so should you.
We understand that the larger your company is, the more complex the supply chain, and the more difficult it becomes to ensure top-to-bottom CSR implementation. Still, there is no value in creating a CSR strategy if your supply chain relies on unethical business practices.
To build a supply chain worthy of B Corp status, examine it with a fine-tooth comb. Your best bet is to start this process from the ground up. Here’s how:
- Ensure your company’s manufacturing processes don’t rely on unfair labor practices or contribute to human rights violations.
- Provide healthy, sanitary, and safe working conditions for all employees.
- Source products ethically and sustainably.
- Consider how product manufacturing impacts the local ecosystem, environment, and conservation efforts, as well as prevents pollution.
- Use environmentally friendly packaging for your goods.
- Reduce wasteful resource consumption with more efficient supply chain processes.
Join the Fight Against Climate Change
B Corps are committed to building a sustainable future — and they’re 250% more likely to be carbon neutral than other companies.
There are many ways to improve your organization’s environmental sustainability efforts, such as optimizing internal processes to reduce energy consumption and investing externally in programs and partnerships that will fight climate change.
First, take some pointers from a B Corp (like Flock Freight!) that’s on a similar journey, and follow this guide to uncover the five best ways to drive sustainability within your organization.
Second, take your CSR strategy to the next level by considering how your company’s partnerships contribute to a more sustainable future for all. By partnering with B Corps or companies that meet high environmental, social, and corporate governance (ESG) standards, your business demonstrates a genuine commitment to responsible business practices.
If your company wants to lower its environmental impact immediately, consider changes such as carbon-neutral freight shipping from Flock Freight. Flock Freight earned its status as the only B Corp in freight shipping thanks to its shared truckload solution, which reduces emissions from each shipment by up to 40%. In true B Corp fashion, Flock Freight made the decision to wipe out any remaining environmental impact of FlockDirect shipments through a carbon offset program in partnership with Carbonfund.org.
Use Business As a Force for Good
B Corps are a global movement of businesses that balance profit and purpose — rather than solely pursue their bottom lines — and consider how their actions impact their workers, customers, suppliers, community, and the environment. Even if your company isn’t on the path to B Corp certification, you can use the B Corp value system to redefine what being a “better business” looks like and achieve success through genuine CSR activities.
It’s time to build a sustainable economy, together. Are you ready?
A version of this article was originally published by Flock Freight. B The Change gathers and shares the voices from within the movement of people using business as a force for good and the community of Certified B Corporations. The opinions expressed do not necessarily reflect those of the nonprofit B Lab.
