Better than B-Corp: The Replay for Social Enterprise

Cosmic has been a social enterprise since our inception in 1996. The business was established with clear ambitions to achieve social impact, with a legal structure to support those ambitions, and with very clear requirements on reporting and evidencing the impact we achieved. And so for 27 years now we have been an impact business, a mission-led organisation, a purpose-driven company; and whatever else has been the buzzword and click-bait over those years. Its still social enterprise to us.

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Back in 2007, Cosmic was the first holder of the Social Enterprise Mark (SEM), and before that we conducted a full and extensive social impact audit to report each year. Since the demise of the SEM CIC this spring, we have been reviewing our need for accreditation and certification to provide added credibility and raise awareness of our way of doing business.? Its very clear that in recent years, there has been a surge in interest in businesses that prioritise social and environmental impact alongside financial gain. And in many ways Cosmic was well-ahead of the curve.

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A model that has gained significant attention is the B Corps, which certifies companies that meet the set standards for social and environmental performance, accountability, and transparency. The model came across from the US to the UK in 2015 and has been growing ever since. There are now over 9,000 B Corps in 102 countries, and it is great to see the movement gathering pace and recognising the need for businesses to hold themselves to higher standards when it comes to social and environmental performance, transparency and accountability. At the moment, almost weekly we read headlines celebrating another business which has achieved B Corp status. The community that this is creating around social and environmental conscience, shared values and being a force for good is really helping to bridge the gap between purely commercial businesses and social enterprise; again something to be celebrated.

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Here at Cosmic we would like to encourage these B Corps to look at what comes next?? How are they going to continue building their credentials and step even further into delivering social value and social impact. In the early stages of B Corp development in UK, we had anticipated a new sets of relationships emerging where Cosmic would play a role in the delivery of social impact for those businesses, and build new partnerships and collaborations on that basis. Unfortunately that has not evolved as yet, but we are as keen as ever to engage with B Corps on this basis.

It’s clear that B Corps will continue to play a crucial role in driving positive change, and equally I know there is an even more impactful model: its called social enterprise.? Social enterprises are businesses that exist primarily to achieve a social and environmental mission, using their profits to reinvest in their cause rather than being driven by shareholders. Unlike B Corps, which are certified based on their performance, social enterprises are defined by their purpose and their mission to put people and planet first. This fundamental difference sets them apart and offers several distinct advantages.

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Prioritising Mission Over Profit: Social enterprises are driven by a deep-rooted commitment to their social or environmental goals. This means that their decisions are made with the primary intention of creating positive change, rather than maximizing profits. While B Corps also strive for social impact, their focus on balancing profit and purpose can sometimes lead to trade-offs that may not be acceptable to some. There are numerous examples now of B Corps falling off their tracks with impact delivery and reporting.

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Greater Flexibility and Innovation: Social enterprises have more flexibility to adapt to changing circumstances and innovate in their approach to achieving their mission. They are not bound by the rigid standards and time consuming expense of B Corp certification, allowing them to experiment with new ideas and take risks that might not be feasible for traditional businesses. This is particularly true for Cosmic, an ‘SME’ social enterprise, which relies heavily on agility, innovation and progressive services in digital.

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Stronger Community Connections: Social enterprises are often deeply rooted in their local communities and have strong relationships with stakeholders. This allows them to better understand and respond to the needs of the people they serve, leading to more effective and sustainable solutions.

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Increased Impact: By reinvesting their profits back into their mission, social enterprises can achieve a greater impact than traditional businesses including those that hold B Corp Certification as they have a different business driver. This allows them to scale their operations and reach more people in need.

While B Corps can make significant contributions to the world of socially responsible business, social enterprises offer a more radical and impactful approach through their mission led business model. By prioritising mission over shareholder profit, embracing flexibility and innovation, and fostering strong community connections, social enterprises continue to be the leaders in creating a more sustainable and equitable future. I encourage anyone wanting to go beyond B Corp, to look at Social Enterprise as their next step and if you want to know more, get in touch.