Social enterprise vs B Corp

The following was originally posted on LinkedIn by SECNA’s CEO, Kylie Flament. See original post here.

Image credit: Kylie Flament

Once a week or so, someone asks me “what’s the difference between a social enterprise and a B Corp?”

It comes up so often that this diagram is scribbled in every notebook I own. Here’s the story I share each time:

Back in business school, we were taught that businesses have to Do Well (make a profit). In fact, that was the only focus of my BCom and my MBA. And they do. Even businesses that exist to make the world a better place need to be financially sustainable. But that shouldn’t be the only goal - and in my mind, should be the tool, not the goal at all.

Social enterprises exist to Do Good. They have a social or environmental purpose that drives everything they do.

B Corps are responsible businesses that need to show how they Be Good. They may be driven by profits but they behave ethically on a range of social and environmental measures.

The difference is best explained through a couple of examples…

Nespresso is a B Corp. No one would argue that they exist to Do Good, so they’re not a social enterprise. But they’ve been certified against B Corp standards so we can trust that they are Being Good in how they make and distribute their coffee pods.

A social enterprise cafe that exists to create employment for a marginalised group is Doing Good. But if they’re also creating mountains of single use plastic waste then they’re not Being Good.

The holy grail is an organisation that does all three - makes money (Do Well), exists to make the world a better place (Do Good) and is responsible with how they operate (Be Good).

Interestingly, under the global standards for social enterprise, orgs now need to show how they’re putting people and planet first in their operations, not just their mission. So People and Planet First verified orgs are the best of the best.

I hope that helps explain it!

Kylie