How can a company be profitable and ethical? This historical article refers to the World Economic Forum's Global Risks Report 2017and its warnings about social, political, economic, and environmental challenges, alongside industrial change. Its statistics and certification details reflect that period.
The article argues that businesses need social legitimacy as well as a market position. It recalls reactions by major U.S. companies to immigration restrictions during Donald Trump's first presidency.
It describes an emerging business approach that connects commercial success with a broader social purpose. B Corps are offered as an example of companies pursuing profit and positive social impact, aiming to be better for the world.
Can a company be profitable and ethical?
The B Corp movement seeks to use markets to address social and environmental issues, even when that requires a longer-term view of returns. The source article cites Capitalism, but With a Little Heartto argue that profitability can coexist with binding commitments to stakeholders beyond shareholders.
The model described here emphasizes products that address social or environmental problems, responsible labor and environmental practices, and fair relationships with communities, suppliers, and other stakeholders. Certification involves assessment, but current criteria should be checked directly with B Lab.
The original article says B Lab certification required a score above 80 out of 200 on the B Impact Assessment at that time. It also mentions pay practices and diversity as evaluation topics. Certification standards and processes may have changed since 2017.
Profitability and ethics can coexist
The assessment also considered whether a company created positive impact through its supply chain, including how it selected and worked with suppliers. Examples included supporting women-led businesses and asking suppliers to meet social and environmental commitments. Public information about assessments can help consumers evaluate claims, but does not replace scrutiny.
The article also discusses the B Change Makermovement. It states that B Corps began in the United States in 2007 and gives 2017-era counts of certified companies and countries. Those figures are historical and should not be treated as current.
It cites Brazilian cosmetics company Natura as a major early participant, followed by crowdfunding platform Kickstarter, utility Green Mountain Power, and Triodos Bank. The article uses them to show that the model attracted organizations of different sizes. So, can a business be profitable and ethical?
Standing out as a profitable and ethical company
The source identifies brand reputation, protection of sustainability goals, and talent attraction as reasons companies sought certification. It cites a 2015 Deloitte survey of millennials, whose percentages are historical and not updated here.
Ultimately, the question is whether long-term financial returns can align with value for society. The article argues that future business resilience may depend on taking that wider responsibility seriously.
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Antoni Gutiérrez-Rubí is a communications adviser.
Original article by Antoni Gutiérrez-Rubí, published in Cinco Días: http://cincodias.elpais.com/cincodias/2017/05/24/companias/1495638272_543970.html.