More than 60 Percent of B Corps Located in Cities—What's Their Impact?

Lena Ferguson writes:

"Now over 1,000 businesses strong, the B Corp movement is gaining momentum as a way for companies to certify their commitment to social, environmental and business goals. This is especially true in cities, as according to ICIC research, at least 60% of B Corps are located in urban markets. Moreover, at least 19% of U.S.-based B Corps are headquartered in inner cities, compared to the 9% of businesses nationally that call inner cities home. This network of inner city B Corps is poised to make long-term change in urban communities.

But how can we measure their impact? 

The B Corp performance assessment can be an important tool in helping drive companies to make a difference in inner city communities. Many of the factors the assessment measures relate directly to inner city development, including the percentage of facilities in low-income areas, local purchasing, percentage of employees from low-income areas and belonging to underrepresented populations, community service policies, and the development of products and services to serve those in need.

B Labs, the nonprofit that oversees and assesses B Corps, reports that, compared to other sustainable businesses, B Corps are 68% more likely to donate at least 10% of their profits to charity, 28% more likely to have over 30% management from previously excluded populations, 18% more likely to use suppliers from low-income communities, and 2.5 times more likely to give employees paid time off for community volunteering. Furthermore, 22% of B Corps sell a majority of products or services that directly address a social issue. For example, Moving Forward Education in Emeryville, California provides tutoring and mentoring services for underserved students of color in California, and MaineWorks in Falmouth, Maine is a temporary staffing company in industrial construction that provides opportunities for disadvantaged workers facing barriers to employment."