A business can be structured in various ways to achieve a desired positive impact or result for one of its stakeholders. This could be based on the type of product it offers, a specific process or activity it engages in, or even the overall organisational structure of the business.

In the B Impact Assessment, the term stakeholder refers to anyone who is affected or has the potential to be affected by the actions of a company. This can include workers, customers, the community, and the environment.

A stakeholder can be any entity that has an interest that is affected or could be affected, either positively or negatively, by the activities of the company. Examples of stakeholders may include civil society organisations, business partners, trade unions, shareholders, other investors, customers, employees and other workers, governments, non-governmental organisations, suppliers, vulnerable groups such as future generations, and the environment, including species.

Historically, certain groups of people have faced obstacles and discrimination that have limited their access to economic opportunities. The nature of these obstacles may vary depending on the context and location. For instance, social identities related to Indigenous and First Nations Peoples, immigration status, caste, religion, or tribe may also be pertinent depending on the situation.

It is important to note that this list is not exhaustive and other identities may need to be considered based on a company’s context, region, or local community.

Employees who work full-time, part-time, or on a temporary/seasonal basis, as well as independent contractors, are included in this count if they work for at least six months and more than 20 hours per week.

Depending on certain factors, working owners may also be considered workers (see the definition of working owner). However, interns and apprentices are not included in the worker count, as defined by these standards.

Founders or partners who work at a company and own 10% or more of the business are known as working owners. If a company’s workforce comprises working owners who own 10% or more of the company, the company is considered a sole proprietorship with no employees.

However, if a working owner with additional non-working owner staff is on the payroll, the working owner is counted as an employee. Similarly, if a working owner is not on the payroll but has additional non-working owner staff, the working owner is still counted as an employee.

Identifying the most appropriate aspect of well-being or natural environment condition to measure is crucial. For instance, a healthcare organisation can prioritise the outcome of good health before determining a specific health condition. Metrics are then selected periodically to measure the outcome, such as blood sugar level, self-reported mental health, or body mass index. To identify the well-defined outcome, organisations engage with stakeholders to determine the outcome that is of most value to them. Social Value International encourages this practice to help identify the well-defined outcome.

Source: Social Value International (SVI)

Objectives that are measurable, actionable, and time-bound should be based on the latest scientific findings. These objectives enable individuals and organisations to align with Earth’s limits and the sustainability goals of society.

Source: Science-Based Targets Network

Justice, Equity, Diversity, and Inclusion (JEDI) are principles and values that relate to social justice, equity, diversity, and inclusion in various settings, including businesses, organizations, and society as a whole.

Interestingly, like the fictional Jedi Order in Star Wars, JEDI principles are also dedicated to protecting peace and justice. The Jedi Order in Star Wars was famous for its mastery of lightsabers and adherence to a code of ethics as guardians of peace and defenders of the weak.

When an individual works independently and provides their services to a company, they are commonly known as a freelancer. However, there are certain criteria that determine their classification. If an independent contractor works for a company for an indefinite period or for more than six months, working for more than 20 hours a week, they are considered workers. On the other hand, if the independent contractor does not meet these criteria, they are classified as suppliers.

The highest governing body of an organisation is ultimately accountable for the entity, whether or not it is explicitly established. It can take on various formats, such as a board of directors, advisory board, sole director, joint or numerous directors or trustees. In ISO management system standards, it is referred to as “top management” who reports to, and is held accountable by the highest governing body.

This refers to a person within a company who holds a position of authority and is accountable for ensuring that other team members are meeting their performance targets or that important operational processes are running smoothly.

An agriculture grower has a majority of raw input materials for companies that run a farm or agro-processing facility or directly source crops from farmer-growers. This includes fruit or vegetable farms, farmers’ markets, coffee plantations, and coffee roasters. However, livestock producers, such as poultry, pigs, sheep and cattle are classified under ‘Manufacturing’.

A strategy that describes how a particular action or a group of actions is anticipated to bring about particular improvements, relying on a causal analysis based on the available evidence.

Source: United Nations Development Group

A company’s direction and control are guided by a set of regulations, procedures, and methods known as corporate governance.

Source: Institute of Chartered Accountants in England and Wales (ICAEW)

Organisations’ conduct can have consequences on both individuals and the environment.

Source: Impact Management Platform

Organisations’ products, services, and by-products are a direct outcome of their activities.

Source: Impact Management Platform

Usage #1

Organisations’ activities and outputs can result in changes or events that create a causal link between them and their impacts on people and/or the natural environment. This link provides an understanding of how organisations’ actions and outputs affect the world around them.

Usage #2

The actions of the organisation and external factors influence the level of well-being experienced by people and the condition of the natural environment.

Source: Impact Management Platform

The Brundtland Commission defines sustainability as meeting the present needs without compromising the ability of future generations to meet their own needs. The Science-Based Targets Initiative and Kate Raworth state that outcomes for people are sustainable if they fall within the acceptable range determined by societal thresholds, and outcomes for the natural environment are sustainable if they fall within the acceptable range determined by ecological thresholds. According to the Cambridge English Dictionary, sustainability is the quality of being able to continue over some time.

Source: Brundtland Commission; Science-Based Targets Initiative; Kate Raworth; Cambridge English Dictionary

Being in a happy, healthy, or prosperous condition is referred to as the state of well-being. The OECD Well-being Framework explains that people’s most significant concerns are encompassed by the 11 dimensions of well-being.

Source: Oxford English Dictionary, Organisation for Economic Co-operation and Development (OECD)

A B Corp, short for Certified B Corporation™, is a company that has been verified by B Lab™ to meet high standards of social and environmental performance, transparency, and accountability. These companies commit to positively impacting all stakeholders, including workers, communities, customers, and the planet. To achieve certification, B Corps complete the B Impact Assessment™, amend their highest governing documents to embed a commitment to consider stakeholder impact, and publicly list their impact score. They recertify every three years. B Corps are businesses prioritising purpose and benefit for all, not just shareholders, with ‘B’ standing for Benefit. Read more here.

Source: B Corporation

In 2015, all United Nations Member States adopted the Sustainable Development Goals (SDGs), also known as the Global Goals or UN SDGs. These 17 interconnected goals provide a shared blueprint for peace, prosperity, and sustainability for people and the planet.

They include:

1. End poverty everywhere (SDG 1)
2. End hunger and malnutrition (SDG 2)
3. Ensure healthy lives and well-being (SDG 3)
4. Ensure quality education and lifelong learning (SDG 4)
5. Achieve gender equality and empower women and girls (SDG 5)
6. Ensure water and sanitation for all (SDG 6)
7. Ensure affordable and clean energy (SDG 7)
8. Promote decent work and economic growth (SDG 8)
9. Build resilient infrastructure and foster innovation (SDG 9)
10. Reduce inequality within and among countries (SDG 10)
11. Make cities and human settlements inclusive, safe, resilient, and sustainable (SDG 11)
12. Ensure sustainable consumption and production patterns (SDG 12)
13. Take urgent action to combat climate change and its impacts (SDG 13)
14. Conserve and sustainably use the oceans, seas, and marine resources (SDG 14)
15. Protect, restore, and promote terrestrial ecosystems and biodiversity (SDG 15)
16. Promote peaceful and inclusive societies, justice, and institutions (SDG 16)
17. Strengthen the means of implementation and revitalise the Global Partnership for Sustainable Development (SDG 17)

These goals address global challenges such as poverty, inequality, climate change, and environmental degradation. They emphasise collaboration across sectors and stakeholders to create a more sustainable future for all. See Our Impact page for how Good 4 Business aligns its mission with the SDGs.

Source: sdgs.un.org

A B Consultant™ is an independent professional who assists businesses in their journey to Certified B Corporation™. These consultants are not employees of B Lab™, the not-for-profit behind the B Corp movement. Instead, they offer specialised guidance through the B Impact Assessment™ (BIA) and sustainable practices, helping companies meet the rigorous standards for certification.

B Consultants are qualified consultants trained and recognised by B Lab. B Consultants provides services to support businesses in improving their impact and harnessing their business for the greater good of the planet and its people. They are committed to keeping their skills and knowledge current through quarterly continuous professional development. B Consultants can be invaluable in navigating the B Corp Certification process. Learn more about our BIA in 6 services.

Source: B Corporation

Good 4 Business, with Kathy Joyce as a B Consultant, can provide valuable assistance when it’s time for your business to recertify as a B Corp™. They specialise in guiding companies through the rigorous B Impact Assessment (BIA) process, ensuring that your company continues to meet high social and environmental performance standards, transparency, and legal accountability. Working with a B Consultant, you are more likely to capture all of your business’s positive impact since completing the last assessment and show improvements on your past score while creating an actionable plan for the following certification. See our BIA Refresher service for information on how Good 4 Business can help you.

Source: B Corporation

The difference between business sustainability and a sustainable business:

Business Sustainability:
Definition: Business sustainability involves operating without negatively impacting the environment or society.
Focus Areas:
Environment: Consider resource usage, waste, and emissions.
Social: Address labour practices, community engagement, and social justice.
Examples: Using sustainable materials, optimising supply chains, and supporting local initiatives.
Importance: It can enhance financial performance and public support.

Sustainable Business:
Definition: A sustainable business integrates environmental and social responsibility into core strategies.
Characteristics:
Holistic Approach: Balances environmental, social, and economic factors.
Long-Term Perspective: Prioritises long-lasting impact.
Ethical Decision-Making: Upholds responsible practices.
Examples: B Corp-certified companies, carbon footprint reduction.
Goal: Positive impact on environment, society, and financial viability.

In summary, business sustainability is broader, while a sustainable business actively integrates principles into operations.

As a B Corp Consultant, we play a crucial role in helping businesses create sustainability:

1. B Corp Certification Guidance:
   Assist businesses in the B Corp certification journey, which requires meeting rigorous social and environmental performance standards.
   Help them assess their impact across various areas, such as governance, workers, community, and environment.
2. Carbon Accounting and Reduction:
   Guide companies in measuring their carbon footprint.
   Develop strategies to reduce emissions through energy efficiency, renewable energy adoption, and sustainable practices.
3. Supply Chain Optimisation:
   Collaborate with businesses to create sustainable supply chains.
   Encourage responsible sourcing, fair labour practices, and ethical supplier relationships.
4. Stakeholder Engagement:
   Facilitate dialogue with stakeholders (employees, customers, communities) to align business practices with their needs and values.
   Promote transparency and accountability.
5. Social Impact Initiatives:
   Encourage businesses to support local communities through pro-bono services, volunteering, or partnerships.
   Advocate for diversity, equity, and inclusion within organisations.

According to a Forbes article, creating a sustainable business involves several key steps:

1. Understand What Customers Need:
   Prioritise understanding the changing needs of your customers.
   Adapt your products, services, or solutions accordingly to build sustained partnerships.
2. Have Well-Defined Processes:
   Establish clear-cut and adaptable processes.
   Enable teammates to approach day-to-day activities successfully without constant oversight.
3. Keep An Eye On Industry Dynamics:
   Observe competitors and industry trends.
   Be willing to adapt your business model to meet dynamic needs.
4. Innovate To Meet Customer Needs:
   Continually innovate to address evolving consumer requirements.
   Pivoting, like offering remote services during the pandemic, demonstrates adaptability.
5. Offer A Superior Customer Experience:
   Prioritise exceptional service and customer satisfaction.
   Long-term success relies on loyal and satisfied customers.
6. Be Authentically You:
   Showcase your unique brand identity and values.
   Authenticity resonates with customers and fosters trust.
7. Prioritise Your People:
   Invest in your team’s well-being and growth.
   Engaged employees contribute to a sustainable business.
8. Never Get Complacent:
   Continuously assess and improve.
   Avoid complacency and stay responsive to changes.

Remember, sustainability is crucial for long-term business viability!

Source: Forbes