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Benefit Corporations

James Wernicke

31 Jan 2023

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About Me

I grew up in New Mexico and love living in Los Alamos where I can feed my twin passions of science and nature while raising my family in a safe and quiet community. I started my first business in 2022 and shortly thereafter, stumbled into studying corporate responsibility when I accidentally enrolled in a graduate course on the subject at UNM’s Anderson School of Management. I believe there is a lot of injustice in the world, and that for-profit enterprise and voluntarism are the keys to eliminating it.

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Our Economy Runs On Capitalism

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As Capitalism Rises, So Does Global Prosperity

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“There is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits.”

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Profit At All Costs?

Worker Exploitation

Pollution

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“Capitalism means you have the opportunity to use your talents to produce things you share with other people, and if they are a value to others, you will be rewarded in a relatively fair system.

Do we have a fair system?

Where multinational corporations pay less taxes than Jimmy Carter? Where young people have to wait until they're 40 to buy a house?

Is that capitalism the way it was intended?"

Source: wikipedia.org

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Stakeholders Are First Class Citizens

Stakeholder Corporation

Balances stakeholder and shareholder values

Shareholder Corporation

Maximizes shareholder value

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Demand For Responsible Business Is Rising

World’s largest organizations are using GRI standards [2]

80%

Cost to businesses for climate-related events by 2026 [2]

$1.3T

Growth in ESG investments by 2026 [1]

84%

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New Tools To Empower Corporate Responsibility

Benefit Corporation

  • For-profit corporate entity that creates positive impact for stakeholders
  • Protects business operators who make decisions in the interest of stakeholders at the expense of shareholders
  • Legislated in 35 states

Certified B Corp

  • Certifies company meets a high level of social, economic, and environmental responsibility
  • Conferred by B Lab
  • Open to any for-profit entity
  • 6,321 Certified B Corps in 89 countries

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Why Certify?

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Maintain Mission

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Differentiate From Pretenders

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Measure Performance

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Attract Talent

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Collaborate With Peers

  • B Hive exclusive online community for B Corps
  • B Local NM chapter next meeting in April
  • Creative Santa Fe Beyond Profit Series

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Save Money

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Generate press

“In my work, I often wonder to what extent business can help society in its goals to alleviate poverty, preserve ecosystems, and build strong communities and institutions…

B Lab has proven that there is a way – the B Corp movement shows us that business, the driving force of our economy, can be an agent of change and live up to society’s standards.”

- Madeleine Albright

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B Impact Assessment

  • Roadmap to certification
  • Good advice even for non-certifiers
  • Arduous, but worthwhile
  • Not all questions apply to all businesses

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Best For The World

“B Lab’s vision is that one day all companies will compete to be best for the world, and as a result society will enjoy a more shared and durable prosperity.”

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“We can no longer save the world by playing by the rules because the rules have to be changed. We need a system change, rather than individual change, but you cannot have one without the other.

So I ask you to please wake up and make the changes required possible. To do your best is no longer good enough. We must all do the seemingly impossible.

Everything needs to change. And it has to start today.”

- Greta Thunberg

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References

  1. https://www.perillon.com/blog/esg-statistics
  2. https://www.forbes.com/sites/georgkell/2018/07/11/the-remarkable-rise-of-esg

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Questions?

James Wernicke

me@wernicke.com