Small logo Subscribe to leading news on impact investing. Learn More
The Brief Originals Dealflow Signals The Impact Alpha Impact Voices Podcasts Agents of Impact Open
What's Next Capital on the Frontier Measure Better Investing in Racial Equity Beyond Trade-offs Impact en las Americas New Revivalists
Local and Inclusive Climate Finance Catalytic Capital Frontier Finance Best Practices Geographies
Slack Agent of Impact Calls Events Contribute
The Archive ImpactSpace The Accelerator Selection Tool Network Map
About Us FAQ Calendar Pricing and Payment Policy Privacy Policy Terms of Service Agreement Contact Us
Locavesting Entrepreneurship Gender Smart Return on Inclusion Good Jobs Creative economy Opportunity Zones Investing in place Housing New Schooled Well Being People on the Move Faith and investing Inclusive Fintech
Clean Energy Farmer Finance Soil Wealth Conservation Finance Financing Fish
Innovative Finance
Personal Finance Impact Management
Africa Asia Europe Latin America Middle East Oceania/Australia China Canada India United Kingdom United States
Subscribe Log In

Why don’t more public companies become B Corps?

Etsy, the online handicraft marketplace, is one of the first public companies with “B Corp” status, and it is becoming Exhibit A for why there aren’t more companies certified for their social and environmental performance. After ousting CEO Chad Dickerson for slow growth at the online craft marketplace, investors are pressuring the firm to act more like a conventional company.

KKS Advisors explored the obstacles to certification as B Corps for public companies. The biggest barrier is the most obvious: B Corps certification (by the nonprofit B Lab) recognizes companies that take into account their whole range of stakeholders, including employees and the community. That bucks both short-termism and the primacy of shareholder returns.

An advisory group of larger companies, including Unilever, Danone, Campbell’s Soup, Natura, Suncorp and Bancolombia (one of the largest banks in Latin America) is trying to square the circle. Their report is due to report by the end of the year.

You might also like...