Every March, B Lab and the global B Corp community celebrate what it means to be a B Corp, raising awareness of the movement worldwide. At the beginning of March, we jumped into the truth about becoming a B Corp. Now, to round off the month, we’re looking at why being driven by purpose can be profitable for your pocket and planet.
A really insightful paper published in 2023 by Demos & B Lab called The Purpose Dividend outlines how businesses can help to build an inclusive economy through embedding social and/or environmental purpose into the way that they make decisions.Â
The Case for a New Economic Strategy
For several years, the UK has faced significant economic challenges. With productivity levels 40% lower than the G7 average and economic growth among the weakest in the group, traditional policy approaches, such as corporate tax cuts and government investment, failed to drive the necessary innovation and long-term investment.
The paper says that in order to create sustainable growth, the UK needs a strategy that goes beyond short-term fixes and instead focuses on business reform, corporate governance, and purpose-driven economic models. Businesses must be empowered to innovate, invest, and operate with a broader sense of purpose. By embedding sustainability, accountability, and long-term value creation into the fabric of UK businesses, the country can work towards a more resilient and prosperous economy.
The Case for Upgrading
The UK, however, has often lagged in modernising its business structures, relying on short-term economic policies rather than addressing the fundamental role of corporate governance in driving long-term investment and productivity. Current approaches, such as tax cuts and government spending, have not delivered the business-led growth needed to strengthen the economy.
The paper says that a more effective strategy lies in purpose-led business models where companies integrate social and environmental goals alongside profit. Research shows that businesses with a clear purpose outperform their traditional counterparts, investing more in R&D, driving higher financial returns, and encouraging greater innovation.
The Case for Purpose-led
If purpose-led principles were adopted more widely, the UK economy could see a £149 billion boost to GDP, a £86 billion increase in SME capital investment, and an additional £135 billion in R&D spending. Workers, particularly those on lower incomes, would benefit too, with wage increases averaging £2,288 per year for the lowest earners.
The success of purpose-driven businesses comes from their long-term investment in innovation, skills, and workforce well-being, making them more resilient and productive. They tend to have greater employee motivation, stronger customer trust, and sustained financial growth. By embedding purpose, UK businesses could enhance profitability and create a more inclusive, sustainable, and competitive economy.
The Case for Profit and Planet
Many businesses today operate with a profit-first mentality, which has contributed to declining public trust. Only 1 in 3 UK adults believe businesses positively impact society. By hardwiring purpose into business operations, companies can rebuild trust and resilience, drive long-term value and contribute to a more sustainable economy.Â
The Case for B Corp – it’s More Than Just a Badge
There is no better way to demonstrate your purpose than with B Corp certification. Until we started the B Corp process, we had no idea that there are over 9,500 Certified B Corporations across more than 160 industries in over 105 countries.Â
At Core 3, we’d always intended to gain B Corp status. It’s been hardwired into our fabric. When it came to completing the process, much of the work was pretty much done, because Leo had set up a company with purpose-led values. These purpose-led values have allowed us to attract and retain the best people and grow into a million-pound business while giving back 3% of our annual revenue to local causes.
And other purpose-led businesses are growing as fast as us too. Further research shows that in 2023 and 2024, small and medium-sized UK B Corps saw a 23.2% increase in turnover compared to a national increase of 16.8% for SMEs.
Customers Want to Support Businesses They Can Trust
More than ever, people are thinking about where they spend their money. A B Corp certification instantly tells customers that your business is committed to ethical, sustainable practices. And that matters. A lot. Studies show that consumers are willing to pay more for sustainable products and services, even during the cost of living crisis. If they have a choice between your business and a competitor that isn’t prioritising sustainability and ethical practices, there’s a good chance they’ll pick you.
It’s a Magnet for Top Talent
People want more from their jobs these days. A nice salary, 28 days holiday, and free gym membership is great, but it’s not enough. They want to be able to make a difference. We’re seeing candidates seeking out and only considering job offers from companies that align with their personal values. Again, it’s no coincidence that B Corps report higher employee satisfaction, engagement, and retention rates. A People Management article says that employees who find their work meaningful report being three times more engaged than their peers. While another report found that 82% of employees believe a company’s purpose should be a factor in deciding where to work. If you’re struggling with attracting the right people and getting them to stay, B Corp could be a game-changer for you.
Stand Out in a Competitive Market
No matter what industry you’re in, standing out is crucial. While we never actively use our B Corp status as a marketing tool, it has enabled us to generate 20% more business than we otherwise would have without it.
This certification shows investors, suppliers, and potential business partners that you’re serious about sustainability, governance, and ethical business practices. Just like employees, customers also want to align themselves with businesses that are doing things the right way. Our customers, for example, have a say in where the 3% of our annual revenue is donated.Â
Future-Proofing Your Business
Sustainability is serious. It’s not a trend. It’s the only way that your business (every business for that matter) has a future.Â
Sustainability compliance and regulations are moving fast, but the 9,500 B Corps are already ahead of the curve when it comes to ESG (Environmental, Social, and Governance) standards and reporting. So, by becoming B Corp you’re future-proofing your business and you won’t be scrambling around to catch up when new regulations inevitably come into play.
Financial Growth That’s Built to Last
Our B Corp journey has debunked several myths and misconceptions around profit and sustainability. We’ve heard lots of people say ‘How can you have a social purpose and make money?’ Well, let us be the first to tell you, you can.Â
Purpose-driven businesses see higher revenue growth, increased investment, and stronger brand loyalty than those without purpose.Â
Ready to Join the Movement
B Corp is much more than a certification. It’s a pathway to building a company that’s trusted by customers and valued by employees. It helps you stand out, drives growth and enables you to make a meaningful impact.
If purpose-led business was the default way to run a business the benefits could be significant. So as we celebrate B Corp Month, there has never been a better time to take the leap. Be part of the movement and shape the future of your business for the better!
Find out more about the certification process on the B Corp website: https://bcorporation.uk/b-corp-certification/the-certification-process/
