With the movement gaining popularity worldwide, the question of whether Wilko should have been a B-Corp is an intriguing one. Currently, under the Companies Act, long standing employees are at the mercy of short-term financiers. If you are a small employer with a strong emphasis on good workplace practices, are protective of the profile of your organisation, and value your employees then B-Corps would be worth exploring.
What is a B-Corp?
In contrast to the primacy traditionally given to shareholders, a B-Corp seeks to balance the interests of all stakeholders in the business. B-Corps take their social and environmental responsibilities seriously and have high standards of accountability and transparency.
What are the benefits?
Higher profile
Some big names are already B-Corps, household names you may recognise include Danone, Innocent Drinks, Ecover. Consumers are already becoming aware of the moral and ethical stances of the brands from which they make purchases, and it helps to build a loyal customer base, as Marks and Spencer did in the 20th Century. Could Wilko have gained more customer loyalty as a B-Corp? The question is open.
Employee commitment and engagement
Employees increasingly seek to see responsible and fair goals from organisations that employ them. That has implications not only for attracting talent but for motivating those employees towards the organisation’s responsible goals. More equitable sharing of the rewards of productivity encourages that productivity.
Verifiable proof of commitment
B-Corps are certified by B Lab, a nonprofit organisation and part of a worldwide movement. This means that customers, employees, and the wider community can be confident of your credentials, aside from the hype, or greenwashing, that may sometimes arise in advertising and promotion.
Legal licence for wider goals
B-Corp status means legal protection for acting in the wider interests of their employees, customers, suppliers, the community, and the environment. This contrasts with the Companies Act, which requires that primacy is given to shareholder interests. The legal protection can continue even in the face of a change of leadership or ownership, as when Unilever acquired Ben and Jerrys.
Networking opportunities
There is a growing movement in the UK with B-Corp directories and events in the UK providing opportunities to network and collaborate.
Summary
On the Gini Inequality of Income Coefficient the UK measures 36.5% (2022) surpassed by only a handful of countries, notably the United States. In making a public and legally backed commitment to ethical values and by inclusion of all stakeholders in the business, B-Corps, I submit, will help redress the balance.
At Employer Solutions, we offer an Employee Handbook with cutting edge policies for your roadmap to B-Corp certification, empowering your organisation to achieve ethical and sustainable excellence.
And, yes, Wilko should have been a B-Corp!
Malcolm Martin FCIPD
Author Human Resource Practice
Blogs are for general guidance and are not an authoritative statement of the law.