hybrid business models: b lab presentation
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Center for Non-Profit and Public LeadershipHaas School of Business – UC Berkeley
Andy FyfeB Lab
B Corporations * Impact Investing * Public Policy
Big Trend
Use market forces to solve social problems
Conscious consumers
Socially responsible investors
Social entrepreneurs and sustainable business
60 million Americans
$2.7 trillion dollars
100,000+ businesses
B Corporations * Impact Investing * Public Policy
Big Problem
Our current capitalist system wasn’t designed for this
• Current corporate law works against sustainability and social impact
• No standards to distinguish ‘good companies’ from good marketing
B Corporations * Impact Investing * Public Policy
Maximize shareholder valueexclusively
20th Century 21st Century
Create social and shareholder valuesimultaneously
Big Opportunity
Shareholder corporation Stakeholder corporation
The evolution of capitalism
B Corporations * Impact Investing * Public Policy
High quality jobs
• Good pay• Better benefits• Greater ownership• Better work environment• Better career development
Big Difference
Stakeholder corporations redefine success in business
Improve our quality of life
• Less waste• More renewables• More philanthropy• More volunteerism• More suppliers local, W/M-owned
B Corporations * Impact Investing * Public Policy
Good products
Last 10 years Next 10 years
Big Need
Good companies
+ 500 others
Standards to drive support
B Corporations * Impact Investing * Public Policy
The Entrepreneur is The Engine of Change
Initiative 1:Shine a light on the Entrepreneur
Initiative 2:Remove legal impediments for the Entrepreneur
Initiative 3:Drive capital to the Entrepreneur
B Lab is a nonprofit organization that supports the world’s leading entrepreneurs using business to solve social problems
B Corporations * Impact Investing * Public Policy
What is a B Corporation?
•Meet independent, comprehensive and transparent standards of social and environmental performance
•Meet higher standards of transparency
•Meet higher legal standards of accountability
B Corporations * Impact Investing * Public Policy
Bay Area B Corps
B Corporations * Impact Investing * Public Policy
The Entrepreneur is The Engine of Change
Initiative 1:Shine a light on the Entrepreneur
Initiative 2:Remove legal impediments for the Entrepreneur
Initiative 3:Drive capital to the Entrepreneur
B Lab is a nonprofit organization that supports the world’s leading social entrepreneurs using business to solve social problems
B Corporations * Impact Investing * Public Policy
Initiative 2: Advancing Supportive Public Policies
The community becomes a powerful constituency
• New corporate form > Benefit Corporations
• 11 states passed• 5 states moving forward• Strong business support
B Corporations * Impact Investing * Public Policy
Key Provisions:
Purpose
• to create material positive impact on society and the environment
Accountability
• directors and officers shall consider effect of decisions on stakeholders
Transparency
• publish annual report in accordance with a third party standard
Benefit Corporation Legislation
“The most original , constructive thought in corporate governance in 25 years.” Former President, American Bar Association
B Corporations * Impact Investing * Public Policy
“Five years from now, ten years from now, we’ll look back and say this was the start of the revolution. The current system doesn’t work – this is the future.”
Yvon Chouinard Patagonia
First Day to Register in California