7 Benefits For Startups Joining the B Corp Movement

With the rise in demand for products that are created sustainably as well as a consumer consciousness that is unprecedented, more and more companies are dedicating themselves to social causes. In order to recognize companies and startups that desire to give top priority to these causes, the legal status of Benefit Corporation and/or Certified B Corp status. This recognition is meant to give consumers a way to find companies with genuine social commitment that are not simply nonprofits.

There are several benefits for companies and organizations to become a Benefit Corporation and/or a Certified B Corp, but Business Insider names seven main benefits:

  • Investors prefer startups that focus on social responsibility
  • Startups can potentially use social responsibility as a way to set themselves apart from competitors
  • Socially responsible products and services typically sell at premium rates
  • Social responsibility opens the door to a broader customer base and audience
  • Customer loyalty tends to be highest for socially conscious startups
  • Being socially responsible improves organizational performance
  • Social responsible organizations have an easier time recruiting and retaining employees

By keeping these benefits – and of course the benefits for your specific cause – in mind, making the decision to become a Benefit Corporation or aΒ  Certified B Corp is an important step for a business with a social mission. Recent polls indicate nearly 90 percent of consumers prefer companies that support important social issues, so not only is it a good thing to do to be a part of the B Corp community, it is also good for a company’s bottom line.