Quantcast
Business

EXCLUSIVE: Director Cyrus Sutton Explains Why B Corps Matter

"There's a lot of negative feelings about capitalism right now," said Kris Lin-Bronner who is the strategic advisor of Dr. Bronner's. Her words are indicative of the wide scale erosion of trust between companies and consumers. It seems that time and again we unearth ugly truths behind the products we've come to love and trust. I've been fascinated with this is for a while now. Is this a result of capitalism itself or is it the way in which capitalism has evolved?

I am first and foremost a documentary filmmaker, my latest film Island Earth examines the cozy ties between agrichemical companies and the food we eat. But I'm also an entrepreneur, I work as a storyteller for Guayaki Yerba Mate and I founded a edible sunblock company. I learned about B Corp certification through Chris Cohen, a lawyer friend of mine working for Sustainable Law Group. I was telling him about the business I was planning to start and he suggested I look into creating a benefit corporation and applying for B Corp certification. He said something like this…


"Say you have a great idea for a business—it's unique and you're committed to positive social and environmental impact. The sad truth of capitalism in America today is that if you take money from an investor to help implement your vision, the legal framework surrounding this investment can seriously compromise the original intent of your vision."

To back up, when you incorporate your company you are handing over a large degree of control to your investors to which you have a fiduciary responsibility. Ever since the Revlon Ruling in 1986, this responsibility has shifted away from maintaining the health of the company to maximizing shareholder value often regardless of social or environmental impacts. So quarter by quarter we see companies making decisions that compromise the efficacy of their intentions.

A benefit corporation offers refuge from this system. It allows the founders to essentially bake in their vision and give their higher minded goals the legal armor to weather capital raises, and leadership changes. Then, through the B Corp certification process—which is open to all businesses that meet certain standards, and not just benefit corporations—these companies can quantify and communicate their impact to their stakeholders, adding an additional layer of accountability and transparency. It seems to be working, according to B Lab's community manager Andy Fyfe, there are now more than 2,000 certified B Corps internationally. His hope is that a tipping point will be reached as literacy grows and big multi-national corporations will be pressured to adopt this framework to hold themselves accountable to a more responsible standard of operation.

In the end only time will tell if capitalism is an inherently flawed system. But I'm excited to participate in evolving the current paradigm before starting from scratch. Working at Guayaki, a twenty-one year old company that has stewarded the restoration of over one-hundred thousand acres of rainforest in South America while cultivating empowering relationships with local growers, I've seen first hand the potential for business to steer industry towards a more sustainable future. My hope is that this short film will create more awareness around the red circled "B" logo that is printed on the back of products for both customers trying to make informed buying decisions as well young entrepreneurs such as myself wary of falling into the trappings of modern business.

To learn more about Benefit Corporations visit bcorporation.net.

EcoWatch is proud of its standing as a Certified B Corporation.

Show Comments ()

EcoWatch Daily Newsletter

Sponsored
Health
Pexels

5 Ingredients for Health: Starting with Food

On Food Talk with Dani Nierenberg, Dr. Robert Graham—board-certified physician and founder of FRESHMed NYC—combines mainstream medical practices with therapies inspired by ancient wisdom: an integrative model of medicine. "My dad was a biochemist, so I grew up in this integrative model. One of the things that really stood out is my mom was distrustful about the conventional Western model. She still thinks she's the only doctor in the house, because food is such a powerful medicine, especially from her culture," said Graham.

Keep reading... Show less
Popular
Malte Mueller / Getty Images

When Profit Drives Us, Community Suffers

By David Korten

As I was reading the current series of YES! articles on the mental health crisis, I received an email from Darcia Narvaez, professor of psychology at University of Notre Dame. She was sending me articles being prepared for an anthology she is co-editing with the working title Sustainable Vision.The articles present lessons from indigenous culture that underscore why community is the solution to so much of what currently ails humanity.

Keep reading... Show less
Popular
The Revelator

Interactive Map: Air Pollution in 2100

By Dipika Kadaba

Having a little trouble breathing lately? That's no surprise. Air pollution is already bad in many parts of the country, and climate change is only going to make it worse. Even though many industries are reducing their emissions, a warming climate could actually offset these reductions by intensifying the rates of chemical reactions and accumulation of pollutants in the environment.

Keep reading... Show less
Health
ddukang / iStock / Getty Images Plus

Is Apple Cider Vinegar Good for You? A Doctor Weighs In

By Gabriel Neal

When my brother and I were kids back in the '80s, we loved going to Long John Silver's.

Keep reading... Show less
Sponsored
Animals

Dumpster Debacle Distracts From Serious Spike in Whale Deaths

This week, a video of a failed attempt to put a dead, 4,000-pound whale into a tiny dumpster made the rounds on the internet, garnering chuckles and comparisons to Peter Griffin forklifting and impaling a beached sperm whale on Family Guy.

The juvenile minke whale washed up on Jenness Beach in Rye, New Hampshire on Monday morning, NBC 10 Boston reported. It was found with entanglement wounds, so researchers with the Seacoast Science Center and the National Oceanic and Atmospheric Administration (NOAA) wanted to move the carcass from the beach to a lab for a necropsy to study its death.

Keep reading... Show less
Adventure
Muir Woods, which costs $10 for entry, will have free entry on Sept. 22. m01229 / Flickr / CC BY-NC 2.0

Visit Any National Park for Free This Saturday to Celebrate 25th National Public Lands Day

If you're stuck for plans this weekend, we suggest escaping your city or town for the great outdoors.

This Saturday marks the 25th National Public Lands Day, organized by the National Environmental Education Foundation (NEEF).

Keep reading... Show less
Sponsored
Climate
A glacier flows towards East Antarctica. NASA Goddard Space Flight Center / CC BY 2.0

Temperatures Possible This Century Could Melt Parts of East Antarctic Ice Sheet, Raise Sea Levels 10+ Feet

A section of the East Antarctic Ice Sheet that contains three to four meters (approximately 10 to 13 feet) of potential sea level rise could melt if temperatures rise to just two degrees above pre-industrial levels, a study published in Nature Wednesday found.

Researchers at Imperial College London, the University of Queensland, and other institutions in New Zealand, Japan and Spain looked at marine sediments to assess the behavior of the Wilkes Subglacial Basin during warmer periods of the Pleistocene and found evidence of melting when temperatures in Antarctica were at least two degrees Celsius above pre-industrial levels for periods of 2,500 years or more.

Keep reading... Show less
Energy
Oil well in North Dakota. Tim Evanson / Flickr / CC BY-SA 2.0

Pipeline Leaks 63,840 Gallons of Produced Water in North Dakota

A pipeline released 63,840 gallons (1,520 barrels) of produced water that contaminated rangeland in Dunn County, North Dakota, the Bismarck Tribune reported, citing officials with the North Dakota Department of Health.

Produced water is a byproduct of oil and gas extraction, and can contain drilling chemicals if fracking was used.

Keep reading... Show less
Sponsored

mail-copy

The best of EcoWatch, right in your inbox. Sign up for our email newsletter!