The B Corp Handbook: How to Use Business as a Force for Good
By Ryan Honeyman, 2014

I. Introduction to B Corporations

In his book “The B Corp Handbook: How to Use Business as a Force for Good,” Ryan Honeyman introduces the concept of B Corporations (B Corps) as a movement aimed at redefining success in business. B Corps are companies certified by the nonprofit B Lab to meet rigorous standards of social and environmental performance, accountability, and transparency. Companies that achieve B Corp certification commit to using business as a force for good, balancing profit and purpose.

Concrete Example: Ben & Jerry’s, a well-known B Corp, implements social missions at the core of its business model, focusing on sustainable ingredient sourcing and community-driven initiatives.

Actionable Step: To move towards B Corp certification, conduct an initial assessment using B Lab’s B Impact Assessment tool to measure your company’s impact on workers, community, environment, and customers.

II. The Importance of Purpose-Driven Companies

Honeyman emphasizes that businesses should aim not only to generate profits but also to contribute positively to society. He discusses how consumers, investors, and employees increasingly prefer companies that demonstrate strong ethical values and social responsibility.

Concrete Example: Patagonia, another B Corp, embodies this principle by donating 1% of its sales to environmental causes and embedding sustainability directly into its products and supply chains.

Actionable Step: Define and integrate a clear, actionable purpose into your business strategy. Create a mission statement that aligns with social and environmental goals and communicate it across all levels of your organization.

III. Benefits of Becoming a B Corp

The handbook outlines several key benefits of B Corp certification:

Concrete Example: Warby Parker, famous for its innovative “buy a pair, give a pair” program, used its B Corp certification to strengthen its brand image and attract top-tier talent while providing eyewear to those in need.

Actionable Step: Promote your B Corp status (once achieved) in marketing materials to attract like-minded investors and employees, and use the certification process as a catalyst for internal innovation.

IV. Understanding the B Impact Assessment

The core of B Corp certification is the B Impact Assessment (BIA), a thorough evaluation of a company’s social and environmental performance, accountability, and transparency. Honeyman explains that the BIA covers five categories: Governance, Workers, Community, Environment, and Customers.

Concrete Example: New Belgium Brewing Co., a certified B Corp, achieved high scores in the BIA by fostering a strong employee ownership culture and reducing its environmental footprint through renewable energy and sustainable brewing practices.

Actionable Step: Begin by taking the B Impact Assessment, identify areas needing improvement, and create a roadmap addressing specific deficiencies (such as diversity policies, environmental measures, or governance practices).

V. Enhancing Governance and Accountability

Strong governance is essential for B Corps. Honeyman emphasizes that B Corps should have clear structures to ensure accountability and transparency. This might include adopting benefit corporation status where available, which legally binds companies to consider the impact of their decisions on all stakeholders.

Concrete Example: Method Products is a B Corp that ensured its long-term commitment to social and environmental impact by adopting benefit corporation status in its corporate charter.

Actionable Step: Review your company’s governance structures and consider adopting benefit corporation status to legally embed your social mission in company bylaws.

VI. Improving Worker Impact and Culture

Honeyman highlights the significance of creating a positive impact on workers as crucial for B Corps. This includes fair wages, employee benefits, professional development opportunities, and fostering an inclusive, empowering workplace culture.

Concrete Example: Etsy, an e-commerce marketplace, supports its workers with competitive wages, generous parental leave policies, and extensive professional development programs, reflecting its commitment as a B Corp.

Actionable Step: Conduct regular employee surveys to gather feedback and insights, implement fair wage policies, and develop programs that support career development and work-life balance.

VII. Fostering Community Engagement

B Corps are encouraged to forge strong ties with their local communities. This could involve supporting local suppliers, contributing to community projects, and ensuring ethical business practices throughout the supply chain.

Concrete Example: Greyston Bakery, a social enterprise and B Corp, pioneered open hiring practices, providing employment opportunities to those often marginalized, and integrating community support initiatives into its core operations.

Actionable Step: Develop community engagement programs, prioritize local suppliers, and explore initiatives like open hiring that directly benefit your community and promote social justice.

VIII. Environmental Stewardship

Environmental considerations are a critical part of becoming a B Corp. Honeyman points out that companies need to evaluate and improve their environmental footprint, such as adopting sustainable practices, reducing waste, and investing in renewable energy.

Concrete Example: Seventh Generation, a household and personal care product company, commits to plant-based ingredients and eco-friendly packaging, significantly reducing environmental impact.

Actionable Step: Conduct an environmental audit, establish sustainability goals (e.g., zero waste to landfill, carbon neutrality), and consistently monitor and improve environmental practices.

IX. Customer Impact

Honeyman discusses the importance of delivering value to customers in a way that also contributes positively to society. Products and services should be designed to be beneficial to customers while simultaneously considering the environmental and social impacts.

Concrete Example: The Honest Company provides non-toxic household products, ensuring transparency in ingredients and supply chain while marketing their products based on safety and environmental consciousness.

Actionable Step: Perform a lifecycle analysis of your products to identify areas for reducing negative impacts and integrate customer-focused social and environmental benefits in your offerings.

X. Scaling the Impact

The book explores how B Corps can scale their impact by collaborating with other B Corps, sharing best practices, and supporting the broader movement towards more responsible business practices.

Concrete Example: The “B Hive,” an exclusive platform for B Corps, allows certified companies to collaborate, share insights, and participate in joint initiatives to amplify collective impact.

Actionable Step: Join B Hive and engage in the collaborative community of B Corps. Actively participate in events, forums, and partnerships to share knowledge and drive the movement forward.

XI. Conclusion

Ryan Honeyman concludes the book by reaffirming that becoming a B Corp is more than just a certification; it’s a commitment to ongoing improvement and a shift towards a more sustainable and equitable economy. He encourages businesses to see the journey to B Corp certification as part of a broader effort to make a lasting positive impact on the world.

Concrete Example: Kickstarter, a B Corp, leveraged its platform for social good, supporting projects that promote the arts, creativity, and innovation, reinforcing its commitment to positive societal impact.

Actionable Step: View B Corp certification as a starting point. Regularly re-evaluate and enhance your practices, and use your influence to advocate for broader systemic changes in business practices.

This summary offers a comprehensive overview of Ryan Honeyman’s “The B Corp Handbook: How to Use Business as a Force for Good.” Each section provides concrete examples and actionable steps, reflecting the book’s rich content applicable to any organization committed to social entrepreneurship.