November Monthly Briefing: Growth of mission-driven business models Our views on what matters |
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There’s growing interest in mission-driven businesses, both as a response to public and political pressure for businesses to make a positive impact on society and the world, and as long-term value creation slowly edges into the investor relations narrative.
Social enterprises (commercial organisations which reinvest or donate profits to a social or environmental mission) are some of the best-known mission-driven businesses.
A new report by Social Enterprise UK (the largest UK social enterprise network) suggests they are not just attracting interest because of their ‘for-benefit’ orientation, but because they are outperforming conventional businesses in terms of revenue growth.
There’s also growing interest in certification and accreditation as a means to badge a company’s socially responsible credentials. Whilst industry is awash with a growing number of standards, benchmarks and certifications, B Corp certification (recognising businesses that meet the highest standards of social and environmental performance, transparency, and accountability to balance profit and purpose) is one of the most well-known.
However, by far the majority of B Corps are small and medium sized businesses. But while uptake among large multinationals and listed businesses has been slow some, like Danone, are working towards it, one operating company at a time. And the August announcement from the CEOs of Abbott, Coca Cola, Apple, Amazon and other major US business at the Business Roundtable calling for stakeholder primacy over an exclusively shareholder-led model point to big businesses looking at alternative operating models to secure long-term sustainability.
Will the growing interest in mission-driven approaches and early evidence that they outperform traditional operating models be enough to convince more businesses to reconsider their purpose and contribution in the world? And what are the implications of being mission-driven and independently accredited for companies?
In this month’s Briefing we discuss some of these questions which we posed in our 2019 Ten Actions for Business. Look out for our 2020 edition which will be coming out shortly.
Neil Davy
CEO, Corporate Citizenship
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| | | Companies look to learn from social enterprises, as new research reveals they outperform traditional businesses
Can corporates tackle structural inequality? Big business can learn much from social enterprises.
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| | “No B Corp, no bonus” – Body Shop to staff
The Body Shop has achieved B Corp status, linking the certification to staff bonuses and creating a new model for reaching its ethical goals.
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| | Uber rival Kapten sees social responsibility as a differentiator in the shared mobility market
Ride-hailing firm Kapten is targeting young consumers who value companies with a social conscience.
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| | B-lieving in B Corps
Is becoming a B Corp primarily an act of “greenwashing” by big businesses, or are there genuine steps being to transform their business?
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| | The growth of mission-driven business by Chris Turner, Executive Director, B Lab UK Chris Turner, Executive Director of B Lab UK, explains how they are playing a vital role in helping companies to understand “why” and “how” to be a mission-driven business.
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| | Corporate Foundations Breakfast: Incubators
for innovation?
Tuesday, 5th November
Join us for a breakfast discussion where we will discuss the issues raised in our research, the ambition for Foundations and the opportunities to drive change for the better.
Read More and RSVP |
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