One tech entrepreneur believes "profit doesn’t have to be a dirty word" if companies act as a force for good.
For Matt Hocking, founding managing director at creative agency Leap, there is no excuse for companies not to become B-corp certified and balance people, planet and profits.
B-Corp certification is a US certification that has gone global and forces companies to shine a light on their own practices and how they operate from the way they look after their staff to their impact on the environment or where their suppliers are based.
While not against profits and making money - which all companies need to do to be able to do good for their staff and the environment - B Corp is a rigorous process that could transform the way companies do business and bring an end to greed-led capitalism.
“Ever since I set up Leap 15 years ago,” Matt said, “I have always tried to have as sustainable a business model as possible. In a way we’ve always be B-corp but we didn’t have any certification to show for it.
'You need to make money to be able to give back'
"We have done other certifications but I always felt like they were bolted on and didn’t feel integrated. The B Corp certification is a way to look at your business in a completely holistic manner. It’s truly about purpose, people, planet and profit.
“You need to make money to be able to give back, so in this way profit is not a dirty word, but it is about looking after your staff, your supply chain and how you can reduce your impact on the world at the same time.”
Leap, which has nine staff, was the first company in Cornwall to become B Corp certified in 2016, a year after the movement exported itself from the US to Britain. Six more companies have followed suit and all of them are now part of a growing movement looking to do business differently.
There are 300 or so companies in the UK with the B Corps certification including smoothies and juices company Innocent and more than 3,200 around the world in 71 countries.
The combined value of these businesses is £78billion which by comparison would make them the 74th richest country in the world for GDP.
Matt, a self styled B Corp enthusiast and environment optimist, believes at least 150 new companies will receive the accreditation in the UK in 2020 and some big names will also come out in Cornwall.
“Becoming B Corp certified is not about ticking a box or two on a form,” Matt said. “It’s a long process that is about looking at all aspects of your business. It’s about transparency.
"The assessment makes you think about what you are doing right and what you are not doing yet that you could be improving upon. It’s about how as a business you can make money and also do good in the world.”
The business impact assessment done as part of the accreditation process makes you involve your staff in your decision making, whether it is paying a minimum living wage or having a breastfeeding policy in place, encouraging staff to have a day off to do volunteer work in the community, encouraging them to walk or take public transport to minimise the commuting times and reduce their carbon footprint.
As a result Leap relocated two years ago from St Austell to Truro’s Old Bakery Studios because a vast majority of staff lived in and around the city and now their commuting time to work is much reduced, they are happier and as a result more productive, staff retention is much higher which is good for the business.
B Corps encourages companies to have a local supply chain within a 50 mile radius as a way to avoid long distance travels and poor working conditions in other countries by keeping it as local as possible.
Matt has even seen staff move from B Corp accredited companies to B Corp accredited businesses and will not work for anyone else.
The B Corp ambassador for the UK and a director of Final Straw, the movement which led to a ban on plastic straws, Matt added: “Capitalism has been around for 400 years so it’s the end of that system but it’s about doing business differently. It does not have to be ‘take take take’ all the time. It’s good to give back too.
“There is still a big awareness push to do because at the moment it’s very much companies in the know and I think the creative sector ought to shift up a gear and get involved. But we’re making head ways. It is changing. And yes business can be a force for good.”
