Raising the Bar With B Corp
As one of currently sixty-four B Corp investment advisory firms in the United States, we get asked why Human Investing decided to pursue the B Corp certification. In the spirit of B Corp’s “Together We Are A Force for Good,” I thought I would share a few insights along with highlights from our most-recent recertification.
Why B Corp?
Like training for any number of professions, mastering a skill, or even raising children, becoming a B Corp involves many considerations. These considerations range from how a company is structured to how it operates, the impact its products and services have within the marketplace, and the company’s desire to support new initiatives towards growth. Additionally, assessing the ability to measure and track progress is key, as well as the ability to support the financial commitment. A not-so-secret ingredient and common denominator among B Corps is a strong (even passionate) desire to provide a better workplace for all. Beyond the structural considerations, the reason(s) a company pursues this certification may stem from a grass-roots motivation, a desire to take part in a rigorous assessment of their business practices, or more formal ESG (environmental, social, and governance) goals. Whatever the reason may be, it is available to for-profit companies of all sizes and industries with at least one year of operations. In many states, while the B Corp is not within the tax code, it is acknowledged as a benefit corporation. The purpose of this is to focus on and highlight stakeholder benefits along with shareholder benefits. Stakeholders are clients/customers, employees, vendors, as well as the community and the environment we live and work in. Once certified, a company’s legal documents (i.e. operating agreement), are required to be revised to include this language.
We have often communicated our B Corp certification as: what LEED certification is to a building or Organic is to milk, B Corp is to Human Investing. Becoming a B Corp is about stepping into the rigors of a standard that expects more. Attaining the certification has allowed us to verify how we operate and highlight what sets us apart. When initially hearing about the B corporation, we felt that being a B Corp already existed in the DNA of Human Investing. Walking through the initial certification gave us the first look into whether that was true and where we needed to focus our improvements.
Entering the initial and ongoing B Corp re-certifications have and continue to be a mirror by which we reflect on who we say we are against actual company data. In today’s world, it is easy to espouse ‘to be’ something. It is quite a different story to invite the effort and rigors into that narrative which, in turn, give validation to the words. As we learned more about what the B Corp organization was trying to accomplish, with its Declaration of Interdependence stating: “That we must be the change we seek in the world. That all business ought to be conducted as if people and place mattered. That, through their products, practices, and profits, business should aspire to do no harm and benefit all. To do so requires that we act with the understanding that we are each dependent upon another and thus responsible for each other and future generations,” we saw how it might fit with our structure as a for-profit company, our desire to be a company with high ideals, and our mission to serve the financial pursuits of all people.
The Certification Process
Our initial certification process in 2014 included questions from 5 different areas: governance, workers, community, environment, and customers. It was like lifting the lid on a shiny car to find out what was really going on under the hood. Accompanying answers to the questions were our company financials along with various forms of data and information to corroborate our responses. Once our B-Corp submission was reviewed, accepted, and exceeded the 80-point minimum we were certified and ready to share the story.
We have recently completed our second re-certification and can confirm the process is becoming more stringent. Data has entered the certification (as with the rest of the business world) in a whole new way. While the depth and breadth of the questions brought new challenges this time around, it also gave us the opportunity to give feedback to help shape future questions.
Keep Reaching Higher
Our story as a B Corporation continues to grow and evolve. We continue to communicate with clients and vendors not only what the certification is about but why it matters. More and more prospective clients are recognizing the logo on our website and expressing their desire to work with a registered investment advisory firm who is also a B Corp. We have encouraged some institutional clients to consider the certification as well. The challenges of our day are greater, but there is no time like the present to keep reaching higher, for the good of all!
If your firm is considering the B Corp certification and you have questions, please reach out to me at jill@humaninvesting.com, or check out the various resources from B Corp below. And remember that at the heart of it all, becoming a B Corp is a verb.
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