What evidence is there that B Corps outperform?

Organisations that think and behave in more purpose-driven ways outperform those that don't. See: "What data and evidence is there for a "better", more purpose-driven approach to business?".

Given B Corps are viewed as a gold standard within that paradigm, it follows that they outperform too. But what evidence is there for them as a group specifically?

There hasn't been much analysis specifically of B Corps. The number of B Corps is small: there are only 3,000 globally (as of Nov 2019). The first cohort only launched in 07/08: it takes time to capture research attention and have a timeframe for performance analysis. Most B Corps are privately owned: financial data is less visible and accessible.

But the research that does exist is positive. So far, it shows the following.

• During the 2008 financial crisis, certified B Corps had an impressive 50.48% revenue growth rate. (Chen, Xiujian and Kelly, School of Management, Binghamton, 2014)
• B Corps had a greater revenue growth rate than public firms of comparable size during the Great Recession and in each year of 2006-2011. (Chen, Xiujian and Kelly, School of Management, Binghamton, 2014)
• The average brand rank across all consumer companies is 5, but 93% of B Corps companies we analyzed scored above that average. In fact, 75% of B Corps scored a 9 or 10 on brand rank. (Helios Machine Learning Research, CircleUp)
• The growth rate of B Corps to be 49%, compared to a 15% rate among other companies in the same category (Dowling, 2018)
• Among B corps whose treatment of employees is recognized as an “area of excellence” (reflective of successful social activity beyond traditional CSR), employee productivity is significantly higher. (Romi & Cook, Texas Tech, 2018)
• One- and three-year sales growth rates are significantly higher for B corps relative to their matches. (Romi & Cook, Texas Tech, 2018)
• Among B corps whose treatment of consumers is recognized as an “area of excellence,” sales growth is significantly higher. (Romi & Cook, Texas Tech, 2018)
• In February 2018, 44 UK B Corps had recertified since launch. The average growth in revenue for these companies over 2 years is 28% (14% p.a.) B Lab UK, 2018
• One in three UK B Corps reach new audiences following certification (B Lab UK)
• Half of UK B Corps find that certification has helped them attract new staff (B Lab UK).

B Lab Research: What The B Corps Say, 2020