Case Studies & Expert Opinions
“It is not enough to ask companies to do well by doing good; we must also ensure that they do not do better by doing bad.”Rick Alexander, Founder of The Shareholder Commons
The European Union now has a unique opportunity to be at the forefront of a stakeholder economy, and turn it into the new norm. By undertaking this legislative effort and leveraging on its large market, the EU will set the path for others to follow. We urge the European Union to be brave in the legislative choices it faces. The experience of the B Corp community shows that the corporate practice of stakeholder economy has a positive impact on all stakeholders (including shareholders) and has a strong business rationale.
“We no longer have time to wait for the slowest to catch up. We have to move urgently to ensure all companies, whatever their size and sector, exercise their duty to act for the global good. Europe should seize the opportunity to lead the way in transforming governance in businesses globally.”Katie Hill, CEO and Executive Chair of B Lab Europe
Expert opinions on the importance of taking action at a pan-European level
Martha Lane Fox, WeTransfer Chairperson
“Most company directors would choose to run their organisations for the benefit of all stakeholders, not just shareholders. However, the market structures do not unequivocally encourage, or even allow for such considerations. To change the behaviour and the impact that companies create, it is high time to change the rules under which they operate. We no longer have time to wait.”
Paolo Braguzzi, Davines CEO
“Doing business for the good of all stakeholders cannot be any longer just a voluntary option. This is the only way to create long term value for the society and the environment and at the same time let businesses thrive thanks to a “healthier” market context. Regulations must now provide a framework, both to set the necessary requirements and make businesses take responsibility.”
Alberto Alemanno, Professor of Law and Founder of The Good Lobby
“As the EU is set to re-write European corporate governance across the continent, it can’t miss the chance to draw inspiration from the B Corp movement and its change-making companies. Only an EU wide mandatory sustainability due diligence framework may put an end to the highly uneven playing field between sustainability-oriented businesses such as B Corps and conventional businesses.”
But how do stakeholder governance and management work in practice?
- Measuring stakeholder impact that is not the responsibility of directors or valued by investors will result in the standardized reporting of the failure to create stakeholder value.
- Developing a culture of interdependence not reflected in stakeholder management and governance is wishful thinking and sloganeering that ignores incentives and power.
- Adopting stakeholder governance without management systems to measure and culture to reinforce progress will amount to little more than glorified mission statements.
Coffee In Good Company Series
To demystify the concept of sustainable stakeholder governance and building a strong base of arguments to endorse its benefits, we’ve launched the Coffee in Good Company sessions, weekly coffee conversations with B Corp leaders and friends every Wednesday morning at 9:30AM.
If you’d like to share your experience and be a guest on the Coffee in Good Company series, email us at firstname.lastname@example.org.