institute B meets B Corp!
Institute B is a mission based organization committed to changing the mandate of business. When our work is done, business schools globally will define the mandate of business as follows: Corporations exist to add societal benefit AND to deliver profits to shareholders, where one is never prioritized over the other.
We are an incubator, accelerator, and developer of social impact for-profit businesses. Besides strategic planning, financing, and mentorship, we provide support infrastructure for consumer products and apparel companies that are aligned with our mission and value system. Institute B is focused as much on developing the human called entrepreneur as well as the organization called the entrepreneurial start-up.
Institute B will demonstrate to traditional business leaders that by focusing equally on positive societal contribution as on profitability, there will be more abundance for all stakeholders including their shareholders. What is good for the world is good for business.
The accepted mandate of businesses has always been profit (shareholder return). Therefore, in the past, the major role and responsibility of leaders of corporations is to return profit to shareholders. Companies have had hundreds of years of history of measuring financial results using globally accepted standards.
If we are to change the mandate of business, why corporations exist, we need new metrics that measure societal impact. We felt, after looking at over 90 organizations globally, that B Lab (BCorporation) was by far a global leader in this space and we immediately felt both a values alignment and a strong desire to affiliate. We found in B Lab an ability to begin the measurement process of social impact, something that is so difficult to quantify.
According to their website, B Corporations are companies which use the power of business to solve social and environmental problems. B Corps, unlike traditional businesses, meet comprehensive and transparent social and environmental performance standards, meet higher legal accountability standards, and build business constituency for public policies that support sustainable business. B Lab, a nonprofit organization, certifies B Corporations, the same way TransFair certifies Fair Trade coffee or USGBC certifies LEED buildings.
After completing the B Lab assessments, we are very thrilled to announce today that institute B is now B Corp certified. For more information on BCorporation, visit www.bcorporation.net. We could not be more thrilled.
Written by: Darrell Kopke, Skool Principal
This is fantastic stuff! A big congratulations to iB.
Metrics are so important as they are the basis for decisions. The challenge that Darrell highlighted about the need for new metrics is not limited to business but throughout society.
For example, GDP is used as a measure for well-being in society however it does not account for non-market services such as volunteering or negative externalities such as pollution. It also includes activities such as cleaning up oil spills and car accidents. Finally, it does not account for changes in the asset base, which will affect our future consumption capabilities.
I think it is really important that businesses and institutions not only question if they are measuring what they think they are measuring but also if what they are measuring matters at all.