"What is not measured can not be improved". The maxim attributed to William Thomson, a 19th century British physicist, mathematician and engineer, and used in the business world, has perhaps been confirmed by countless organizations. B Lab, for example, has proven it to be true. And he has evidence of it.
17 years ago, in the United States, three friends disappointed in business created B Lab (with a 'b' for profit), a non-profit organization that sought to create a new economy in which companies not only sought financial success, but to share it to build a more just, equitable and sustainable world. At that time it seemed like a utopia, but the movement has been gaining followers. Today it is present in 96 countries, in 162 sectors, and 8,200 companies have passed its certification process after measuring their economic, social and environmental impact.
When founding B Lab, the friends were clear that companies had to evolve their governance, and instead of focusing only on generating value for shareholders, they had to benefit all their stakeholders: customers, workers, suppliers and the community itself. They began by creating a tool that evaluated the social and environmental impact of companies. B Lab used the most important standards that existed at that time and created a certification to distinguish those that strived to obtain the highest qualification, which they called B Company or B Corp.
“At that time, businesses began to talk about corporate social responsibility, but in a somewhat superficial way,” comments Javier Herrero, director of Sistema B México. The certification went further. In 2012, the movement reached Latin America through Sistema B, an organization that B Lab authorized to promote the movement in the region. It is currently present in 19 Latin American countries and 1,200 companies are certified, of which more than 100 are in Mexico, where the initiative arrived in 2016.
Since their creation, the standards have evolved so the self-assessment tool is now in its sixth version, and another is on the way. “Right now we are working on what will be a new evolution, in a global open consultation so that the different audiences of interest can give their feedback,” says Herrero.
The tool is based on a questionnaire that companies answer digitally. They can use it not only to measure their impact, but also to see in which area to innovate and know what they have to improve to, at a given time, obtain certification. In Mexico, around 8,000 companies use the platform to self-evaluate. But only those who achieve a minimum score of 80 (out of a maximum of 200) can obtain certification. “Companies can access it as many times as they want (the information is confidential) and only when they reach the requirements to opt for certification do they enter another phase,” explains Herrero.
So, B Lab in the United States reviews the companies' evaluations and verifies that the evidence they offer has real support to grant them certification. They can even carry out
on-site
verifications
if necessary. Among the pillars that the tool measures are governance (purpose and mission), the relationship with its workers and the community that surrounds them, the impact on the environment and the relationship with its clients. “Each of these pillars has a series of questions that the company answers depending on the impact they have,” says Herrero.
System B has programs to guide companies on their improvement path towards certification, in addition to contact with consultants and allied specialists. “Among the strategic objectives that we have as System B at a global level there is a key one: helping companies measure and improve their impact,” adds Herrero. Once they achieve certification, it is valid for three years after which, if they want to maintain it, they must undergo a new evaluation.
From sustainable to truly sustainable
Since he founded Grupo SAD in 1987, Alejandro Pérez was interested in taking care of the environment. “We have always been committed to this issue and to the community. That interest led us to have the best practices,” he says.
The firm dedicated to commercial and industrial packaging printing and graphic arts began with several initiatives: it recycled some of its waste, cleaned its process water of chemicals before it went into the drain, and used recycled paper, among some practices. But until he learned about System B standards, Pérez realized that his efforts were incipient. In search of finding a better method, he decided to subject his company to this certification process in 2013. He thought it would only take a couple of months.
“We had good practices, but achieving the first certification took us two and a half years,” says the businessman. Currently, it is undergoing its fourth recertification as Company B. The process involved making changes at all levels of the company, from its corporate governance, logistics operations, work culture, to decision making. The first change even meant modifying its articles of incorporation.
The raw material that Grupo SAD discarded was sold to cement companies that used it as fuel. Now it goes to a certified company that treats it ecologically and you have to pay for it. “We implemented internal recycling systems to collect rainwater and reduce consumption, and we invested in equipment that would allow us to regulate the voltage of our electronic equipment and reduce energy consumption, among other things,” he says.
Initially, the changes involved cutting their profit margins by incurring costs that they did not have before. Meanwhile, its competition continued with bad practices to maximize their profits, such as not paying taxes, not providing benefits and having low salaries.
However, in the long run, Grupo SAD has had other benefits that Pérez did not consider when certifying and that offset its higher costs. By paying better salaries, for example, turnover decreased and the work environment improved. And by having sustainable practices, it has multi-year contracts with large global clients. “It will cost you more if you are sustainable, but once you achieve it, it becomes an engine of development that will give you more sales and better clients,” says the businessman.
The hotel that obtained a rating of 110
Within B Companies, there are those that, before certification, already had environmental care and positive social impact in their DNA. This is the case of Playa Viva, in the town of Juluchuca, near Ixtapa-Zihuatanejo, Guerrero, which was born in 2008 as a green, ecological, sustainable and regenerative hotel.
Among its values have always been taking care of energy, water and waste management. “Regenerative is doing even less harm than sustainable,” says David Leventhal, chief operating officer of Playa Viva, who maintains that the hotel founded the regenerative travel category.
Playa Viva obtained certification as a B Company in January 2023 with the highest score that a hotel had obtained until then: 110 points. But then why did it take almost a year to get through the process?
“You have to prove everything you say you have and do, and the more you say you do, the more you have to prove,” explains Leventhal when referring to the certification questionnaire. For example, when on the form he talked about his workers on the payroll and mentioned that ten are on the farm, more questions arose: what animals they have, how they feed them, what they do with their waste. “An answer leads to more questions,” he insists.
Their actions in favor of the environment are the easiest area to verify due to visible practices such as producing their own energy from solar radiation. Or careful use of water. Other activities that qualify positively in the community impact pillar are working with local suppliers, educational activities with children, women and cooperatives.
But perhaps aspects such as providing employment to people who, if Playa Viva were not there, would be unemployed, are more difficult to verify. “We're adding jobs for people who normally couldn't find one,” Leventhal says.
Due to the type of market they are aimed at, demanding travelers who value sustainability, being certified and having the Company B emblem, has brought them more clients. And attracting investors is another benefit for Playa Viva, which has resorted to capital funds to increase the number of rooms. “You don't have to take my word that Playa Viva is good, you can see the B Corp certification and know that it is a certification that has a lot of value in the market.”