The idea behind FABtalks is to combine refreshing talks in an inspiring environment with business networking in an innovative way, in order to spark exciting discussions and have experts clarify open questions. The vision is to build an interdisciplinary network and, in the long term, initiate and implement projects together.
On July 9th, the 22nd FABtalks took place in Munich at the BMW Foundation Herbert Quandt on the topic "B Corp – Business as a Force For Good". The BMW Foundation is not only the host but also a partner of the FABtalks series on B Corp in Germany. This series, which will continue to Stuttgart, Frankfurt, and Düsseldorf after Munich, aims to raise awareness of B Corp in Germany, explain the certification process, and inspire more entrepreneurs to dedicate themselves to this topic.
Andrea Bury, founder of ABURY, a fair trade lifestyle label, hosted the evening. Andrea is a member of the BMW Foundation’s "Responsible Leaders" and was inspired to have her company ABURY certified as a B Corp after a presentation on Sistema B (the B Corp movement in South America) at the 2016 Global Responsible Leaders Forum. ABURY has been a certified B Corp since May 2017.
The idea of B Corps originated in the USA in 2006, where it is already widespread and very well-known. The founders, Jay Coen Gilbert, Bart Houlahan, and Andrew Kassoy, wanted to ensure that a company's social mission remains intact even after a change in ownership.
SUMMARY OF THE PRESENTATIONS:
1. Janneke Wagner (B Lab Europe)
B Lab is the non-profit organization behind B Corp. B Corp status is awarded to companies that use the power of entrepreneurship to find solutions to social and environmental problems. To date, there are 3,000 B Corps in 170 countries and 50 industries.
Using the B Impact Assessment, a questionnaire with approximately 90 questions, a company's impact in the areas of governance, environment, community, employees, and customers can be measured. A total of 200 points can be achieved in the assessment – companies that achieve at least 80 points are certified. The questions are freely accessible online at https://app.bimpactassessment.net.
There are different assessments depending on the company's size, location, and industry. After answering the questions, they go to B Lab and the points must be verified. This means that Lab questions the answers and requires "evidence" for the answers in order to actually credit the points.
Every company that wants to become a B Corp must also change its company statutes in the end. A clause stipulates that the company considers its employees, society, and the environment in all decisions made, and that this does not change even in the event of a sale.
The duration of the certification process varies. For large companies, it can take up to several years, while for small companies, it is faster. ABURY, for example, took 4 months for the certification!
What is special about the certification is that it is a dynamic process – meaning that you are inspired by the questions to change processes within the company and can then proceed to final certification once you have achieved the change. Lab supports and helps you along this path.
New assessments are currently being developed for larger companies so that they can use B Corp standards to learn from the expertise and measure their impact, even if they do not become B Corp certified.
The European B Corp Summit will take place in Amsterdam on September 23rd and 24th. All B Corps and interested companies are cordially invited.
More information is available at bcorporation.eu.
2. Verena Wurzler (Patagonia, Marketing and Environmental Protection Germany and Austria)
Environmental protection has always been in Patagonia's DNA; founder Yvon Chouinard was a pioneer in this field in his time. Patagonia has no shareholders, as Yvon Chouinard believes they are the devil. This allows things to be changed quickly – such as the mission statement: We are in business to save our home planet. Patagonia is even a Benefit Corporation, which goes even further than B Corp certification: It is a type of company that unfortunately does not (yet) exist in Germany.
Patagonia decided to become a B Corp to be part of the global movement and to inspire other companies. Verena points out how Patagonia is particularly committed to the environment:
- Patagonia's retail stores are used as community hubs – through regular events, they form a platform for environmental groups and create awareness for specific topics.
- With the "1% for the Planet" project, Patagonia invests 1 percent of its sales in environmental protection. In doing so, they primarily support environmental groups committed to "wild places," the energy transition (coal phase-out, hydropower), and agriculture (regenerative agriculture).
- Action Works is a project launching in Germany in September. The goal is to connect environmental groups online with Patagonia's customers via a platform. This allows customers to see which organizations are near them, donate money, sign petitions, or do "skilled volunteering" – helping organizations with their own skills.
- At the annual Tools Conference, various environmental protection groups are invited and different topics and workshops are presented: from "how best to chain yourself to the tracks" to finance and social media training. "We are not afraid to be radical and political." This is how Patagonia supports "Ende Gelände" here in Germany – the activists in the Hambach Forest.
In general, the audience expressed the wish that "big players" like Patagonia should make even greater efforts to promote B Corp and use the logo so that awareness among consumers increases significantly. Only then can the impact of B Corp fully unfold.
DISCUSSION
What is the motivation of the BMW Foundation to support B Corps?
More and more companies want to take on more responsibility for society and the environment as good citizens. From this new way of thinking, a global movement has emerged that the BMW Foundation summarizes under the term "Impact Business." The BMW Foundation uses this instrument to support leaders in business enterprises to develop their business models in a more sustainable and holistic way. In Latin America, we therefore work with Sistema B, and in Europe with the B Corps. Given scarce resources, rampant environmental pollution, and obvious growth limits, economic success must be redefined. This means: Success is not just reflected in quarterly figures. Success is reflected in how a company strategically uses its business model to improve people's lives and protect the environment.
Can the certificate motivate employees and help attract new ones?
For younger generations, it is becoming increasingly important to find employers who share the same values as they do. At Patagonia, for example, people work who share values like sustainability and environmental protection and can therefore identify with the company's mission.
For ABURY, the B Corp certification process triggered a major boost in motivation for the employees. They were involved in the process and then felt responsible for certain areas that they could develop in a sustainable and social way. Externally, the B Corp certificate is not yet the big attractor for winning new employees, but it is a clear sign that a company is committed to certain issues.
What could be ideas to move the movement forward?
In Germany, the companies Alpro, Freche Freunde, and Tom’s want to print the B Corp logo on their products, thus achieving more visibility for consumers.
Exchange and networking between B Corps in Germany and Europe is also important. Companies that are already B Corp certified should also communicate this publicly, for example at trade fairs, because competitors are also present there.
B Lab Europe wants to develop a tool kit with suggestions regarding communication for newly certified companies. They also offer an onboarding process for new B Corps and ensure that there are contact persons in every company, so-called "B Keepers."
What is the difference between Germany and the USA regarding company types?
The Bosch company, for example, is 92 percent owned by a foundation. A large share of the revenue is put back into research and development, and the entire external dividend distribution goes to the common good. While this is known internally, it was never used in advertising. This is partly because a common narrative in the 90s was: A non-profit-oriented company is not competitive because the external pressure is missing. However, Bosch survived all crises and is one of the most successful companies in the world. The situation is similar with impact investing. Here, too, the main narrative is that this means less return and less dividend – but that is not true. It has since been proven that such companies yield higher returns or can at least keep up with other companies and are more sustainably successful. So, the task is to change narratives. The idea of B Corps originated in the USA because the economic system there was no longer functioning and was not sustainable.
Many thanks to our partners BMW Foundation and B Lab Germany.
THANK YOU FOR COMING AND SEE YOU NEXT TIME!
For questions, please contact Andrea Bury – andrea@abury.net
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