This is big: The Guardian reports from Davos that Unilever is actively considering going for B Corp certification.

If you’re not familiar, B Corp is a legal definition of a profit-making corporation set up to promote environmental and social responsibility rather than a primary goal of maximizing short-term shareholder value and damn the torpedoes. In other words, it is legally allowed to pursue the greater good, even as most corporations are restricted by law and their charters. Maryland became the first of 28 US states to pass B Corp enabling legislation, in 2010.

It’s still a new movement. Only 1203 certified B Corps exist in the world, as of late January, 2015. Unilever’s Ben & Jerry’s unit was one of the first B Corps, back in 2012—and Ben & Jerry’s CEO Jostein Solheim is leading the effort, apparently with strong support from Unilever’s sustainability-minded CEO, Paul Polman.

The B Corp certification process is long and arduous for an entity as complex as Unilever, one of the largest consumer products corporations in the world; it’s likely to take years. But just the act of engaging in the conversation is a game changer:

  • Unilever’s tacit endorsement of the B Corp movement confers legitimacy; if one of the largest and most successful business organizations in the world can embrace it , other companies will say, “perhaps we should look into this.”
  • The B Corp movement is still not very well known, compared to similar movements such as Fair Trade. With Unilever coming onboard, a lot more people in the business world will hear about it—and take it seriously.
  • It will provide Unilever with substantial marketing advantages for several years. If the company is able to harness them properly, it can expect to sway many now-neutral customers to Unilever’s vast portfolio of brands. (As a marketing and profitability consultant to green/socially conscious businesses and the primary author of Guerrilla Marketing Goes Green, I can speak with some authority on this :-). )
  • Most importantly, it will show the entire business world that corporations don’t have to be rapacious; they don’t have to put short-term gain above the earth and its citizens (human and otherwise). It could even provide major leverage to overturn the body of corporation law that says corporations are legally required to put short-term profit ahead of all other considerations. And since most business people actually do want to do good in the world and many have felt burdened by this charter, this could create a seismic shift throughout the entire business community. (Some on the hard left will disagree that most business people actually want to do the right thing. Go ahead; the comments field is waiting for you.) Of course, there are a myriad of profit-making opportunities out there for activist companies willing to create and market goods and services that meaningfully reduce hunger, poverty, war, catastrophic climate change, and other suffering—you don’t need to be a B Corp for that. But as B Corp certification slowly becomes the default, it will speed that change.

In short, I’m heartened and excited by this news, and wish them success.

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I saw “42” when it came out and liked it a lot.

It is hard to stay focused on changing the world when you look around and see not only the same battles all over again, but in many cases the same increasingly elderly activists joining those battles. For me, the wave of youth activism that started with Seattle in 1999 and crested with the Occupy movement–and will return when we least expect it—is very exciting, because it means there IS a critical mass for social change one and two generations younger than us.

I also avoid burnout by regularly thinking about all the areas where we HAVE made progress. And while police violence is an area that needs a LOT of work (since the 1960s, I haven’t understood why they reach for bullets instead of stun guns first), I think about what it was like for blacks in South Africa, Rhodesia, and the American South in my own lifetime…the way the environmental movement has gone from fringe to mainstream…the shattering of the idea common when I was a kid that the only appropriate careers for women were teaching and nursing and domestic work…the relatively new understanding that domestic violence and hate speech and school bullying are crimes we don’t have to tolerate…the string of fallen-dictator dominoes around the world, from throwing off the shackles of colonialism in Africa to the Arab Spring. (We may not always find the replacement governments an improvement, but the truth is, when the people say ENOUGH, governments topple and there is a brief space for something better. Once in a while, as in Mandela’s South Africa, that better thing actually emerges victorious.)

In other words, I look around and I see that within the brief span of my own lifetime (I turn 58 on Wednesday), we’ve made very real change on many fronts, even if it feels like we’re running in place or even backsliding.

These are what gives me hope and keeps me working for peace, justice, and the planet.

The above is my response to a friend posting her response to the movie, “42,” about Jackie Robinson and the integration of baseball. She wrote,

Black Lives Mattered in that struggle against racism in baseball–perhaps the beginning of the civil rights movement…Sixty years later, same struggle. Oh, God help us win this time ’round. Does the arc of justice bend?

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I got sucked into a debate on Facebook following a high school classmate’s posting a meme of some of Obama’s  economic achievements: Dow Jones increasing from 7949 to 17,830 (that’s more than 124 percent, if I’m figuring correctly); unemployment down from 7.8 to 5.8 percent; GDP from NEGATIVE 5.4 to POSITIVE 3.5 percent; and consumer confidence from 37.7 to 94.5 percent from the time Obama took office.

But as these kinds of discussions often do, it quickly turned toward non-economic politics. And good progressive that I am, I put in this comment:

Robin, you wrote, “OH I know Bush had his share of crap also but at least he proudly and openly loved this country.” I am sorry, but if loving your country means bringing it illegally into wars under utterly false pretenses, wrecking the economy, suppressing dissent (continued, to his shame, by Obama), instituting torture, dissipating international goodwill, etc., this is a “love” that needs serious social-work intervention. When an abuser says “I love you and I’ll never hit you again,” we’re skeptical. Bush was an abuser.

The person I quoted than asked me if I didn’t remember 9/11, and wasn’t Bush justified in going to war. She also asked me if I was “also a Jewish Democrat that thinks Obama is good for Israel or do you care”

I responded:

1. Of COURSE I am aware of the horrors of 9/11. I spent two weeks afterward trying to find out if my ex-housemate from Brooklyn days was OK; she was living two blocks from the WTC (she was uptown at the time, fortunately, and now lives in Colorado). And I’m one degree of separation from a couple of people who died that day. BUT Bush made war on Iraq, which had absolutely nothing to do with it (it’s well documented that Bin Laden and Saddam hated each other)–and, it turned out, didn’t have WMDs either. The terrorists were mostly Saudi. Afghanistan, along with Pakistan, actually did shelter the terrorists–but the appropriate response to a criminal conspiracy and criminal acts is not to destroy an entire country but to go in with a police action, capture the perps, and put them on trial. You talk about “an arrogant and narcisitic man who has tunnel vision and refuses to listen to the American people.” That would describe several US presidents, including both Obama and Bush, as well as Nixon, among others. I was out there as part of the largest peace demonstrations in history, urging Bush NOT to make war on Iraq. It was totally predictable that this would only create instability, blow away our foreign allies, and provide lots of recruitment material for terrorists. I think the Iraq war may be the worst foreign policy debacle of all US history.

2. As for Israel: I was just there this summer, and spent a LOT of time talking to all sides (including my Israel-right-or-wrong West Bank settler family members). This is not a simple situation, but ultimately, the repression and racism from Israel against the Palestinians is a far more destabilizing influence. Netenyahu’s policies do not encourage peace. They inflame hatreds. Then the Israelis cry that the Arabs hate us. There have been horrible crimes on both sides–but revenge is not the answer. Somehow, we have to get past that and make peace, as happened in Ireland/Northern Ireland and South Africa. Wallowing in the hatred just boils the cauldron harder. I do think that the majority of Israelis AND Palestinians actually want peace–but the extremists on both sides look for any wedge they can. I take hope from groups like Combatants for Peace and Neve Shalom, and it made me very sad today to hear that a joint Jewish-Arab school was torched by anti-Arab extremists. You make peace with your enemies, not necessarily your friends. Obama showed some leadership early in his presidency and then largely ignored the whole issue. He should show some more.

So, at the risk of throwing kerosene on the flames, let me ask you: what do you think of these two presidents’ foreign policy legacies? I will not censor dissent, but I will block name-calling and uncivility—so play nice, but tell me what you think.

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This week, a judge ruled that the Business Improvement District in Northampton, Massachusetts was organized without following certain laws. The judge ordered the immediate dissolution of the BID, putting several people out of work and leaving the city bereft of services it had performed.

For the past few years, the BID has cleaned the streets of downtown Northampton, maintained its planters, helped the city with snow removal, funded the holiday light decorations, and organized or assisted with various special events to promote the downtown business and arts  communities.

No one doubts that the organization did great work. But from its inception in 2009, it’s been fraught with controversy. Northampton BID was empowered by the City Council to negotiate contracts to perform these services in March, 2009—and just five weeks later—even before the BID was officially formed in July, 2009—a group of dissenting downtown property owners filed a suit claiming the petition signatures for the formation of the BID were not properly collected or certified. The BID could only form if at the owners of at least 297 properties within the proposed district agreed.

There was controversy over whether the enabling law wanted the count based on parcels or property owners—an important distinction, since many property owners owned multiple parcels. As the BID collected them, owners were allowed to vote once for each piece of property they owned or controlled in the district. One owner signed 15 times.

But there was also controversy about several other areas:

  1. Had enough diligence been expended to verify that the signatures were legible and that they were from people with ownership or delegated authority? The judge invalidated 63 that he could not read, bringing the critical mass well below 297, and strongly criticized the city government for failing to check the signatures carefully.
  2. Was it ethical to redraw the district’s boundary lines prior to formation, to include more properties owned by supporters (including Smith College, by afar the largest landowner in the downtown area) and exclude several owned by opponents?
  3. Membership fees paid for all the services the BID performed. When the BID was accepted in 2009, membership was voluntary. But a change to state law in 2012 made membership compulsory.
  4. A July, 2014 vote on whether to extend the BID’s charter through 2019 used voter eligibility rules that excluded all the people who were forced to join in 2012, and passed 40-0.

As someone who has written two books and used to write a column on business ethics, I find that these other issues sway me. No matter how much good the BID does, it cannot justify its actions as an organization that tramples on the rights of its opponents.

When you tell people that an organization has a voluntary membership, and then you make it mandatory to join and pay dues, that’s wrong. And it’s even more wrong to then exclude the recalcitrant members from voting on the organization’s future. It brings to mind words like “deceitful” and “slimy.” And yes, when your charter depends on certifying participation, you make sure those participants are properly certified.

The Sky Won’t Fall

It is a hardship when people are put out of work just before the holidays, with no notice. I feel sorry for the BID’s workers, and I hope the business community steps forward to hire those folks, even if the jobs are temporary.  While it would have made more sense to me if the judge had ordered a more gradual phaseout, letting the organization honor its commitments and its payroll for a couple of months to deal with past obligations and commitments already made, I disagree with BID proponents who seem to think the sky will fall.

Yes, it will be a scramble to get a holiday lighting program in place in time for the retail season. But it can be done. Presumably, it will not be difficult to transfer the contract from BID to the Chamber of Commerce or some other organization.

Yes, it’s going to impact the downtown when the BID employees who’ve been picking up trash stop doing it. But the city has a Department of Public Works.

The BID did not exist until five years ago. And the downtown thrived. When another program, the Northampton Honor Court, stopped picking up the downtown trash, it was a hardship and the downtown definitely looked more tired. But others stepped into the breach.

Again, I support the good work that the BID performed. But I do not support a process that’s tantamount to bullying, don’t support a double standard for BID supporters and opponents, and think it’s completely immoral to bring the organization in as a voluntary effort and then change the rules. Yes, I recognize that it was the state, and not the local BID, that changed the rules, but the blame for rigging the election to continue under the new terms is most definitely local, and deeply unfair.

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On a LinkedIn discussion board, someone asked, “So, why has bettering the world become a mantra for a new generation of entrepreneurs?”

This sparked a very lively discussion, mixing the cynics and the optimists.

You can view this discussion here (you might have to join the group first).

My first comment was quick and straightforward, discussing my new work at Business For a Better World:

I’m 57 years old, been in business since 1981, and my business has *always* been about fostering a better world. This year, I took it further, beginning a campaign to show business how solving hunger, poverty, war, climate catastrophe, etc. is not only the right thing to do, but can be highly profitable (and we actually already have a lot of the technology to make it possible).

But as others responded, I felt a need to go deeper, and I want to share my responses to two of them with you:

Tim asked, “…If these entrepreneurs are so hot on giving to humanity, why not put their technologies in the public domain? There’s a topic for debate: Which is the better outcome, the Gates Foundation or Wikipedia?…”

Tim  – great question! The Gates example has always interested me, in that it follows the pattern of 100-150 years ago, when predatory ubercapitalists like Carnegie and Rockefeller began to seek out a higher purpose later in life and became uberphilanthropists–yes, some of Microsoft’s practices were quite predatory under Gates’ leadership. I can’t think of an equally prominent example in the years between the “Robber Barons” and Gates. (I also think Melinda may have had a lot to do with Gates finding HIS higher purpose–but he has fully embraced it and discovered it provides meaning in his life.) Most towns in my area of New England are still using little public libraries built with Carnegie money.

Warren Buffett is another very interesting example, but his choices and motivations, I suspect, were very different. Buffett never seemed to care personally about accumulating wealth to “better” his own life. He still lives in the simple ranch house he bought in the 1950s. And as far as I know, Berkshire Hathaway under his leadership was not a predatory company. It didn’t shock me when he gave away most of is fortune–to the Gates Foundation (which kind of brings this discussion full-circle).

But I propose that it is possible to be socially conscious from the get-go AND do quite well financially, and that getting wealthy is not a sin. Prominent examples include ice cream superstars Ben Cohen and Jerry Silverman, Yvon Chouinard of Patagonia, Anita Roddick of The Body Shop, and many others. I suspect the Chicken Soup guys (Jack Canfield and Mark Victor Hansen) are in this category; they do not shy away from the trappings of wealth–but they also find many ways to use their wealth to better the world. Jack I know for sure started from very humble beginnings; I have no clue about Mark’s early years, nor can I quickly find anything in public sources.

Jennifer commented, “…The world is in crisis – how do we milk it for all it has now people are focusing on the bad guys that have put the world in crisis. ‘We make the world seem like we care’ – new market. But hang on – ‘we kind of do care – well some of us anyway’ – but hang on ‘the global village concept doesn’t seem to be working’ – Ok; so now what?

Let’s make the world betterment program a thing for entrepreneurs – get rich while you increase people hopes even though those hopes are false…”

Jennifer  – Yours is one of several cynical posts in this discussion, but yours is ambivalent while the others are pretty much set in stone. So I choose to engage with you. I think we need to harness the cynicism and skepticism about business’ ulterior motives to create the action we want, despite our suspicion of their motives. For me, seeking personal wealth has never been as important as making the world better. My millionaire colleagues would laugh at my income. Let them laugh! As long as I can motivate them to make a difference.

I am personally very cynical about the ability to solve our biggest problems–hunger and poverty, war and violence, catastrophic climate change–based on the ways we’ve always done it. Too often, we’ve tried to motivate on guilt, fear, and shame–and it doesn’t work.

So I’m taking a leaf from the libertarians and ubercapitalists and attempting to motivate based on self-interest. If your goal is personal material wealth and I can show you how to realize that goal by seizing the opportunity to make money, and the work that governments and NGOs have failed to do gets done, then fine, take your fortune and go live in your big house. Think about a super-profit-driven company like Walmart: not exactly a tree-hugger hangout. But Walmart realized years ago that there was a lot of money to be made selling organic foods, low-watt lightbulbs and other green products–and a lot of money to be saved implementing green into its own operations, deeply. I have many issues with Walmart in other areas, but on the environment, I give them BIG props. Working from the profit motive, they have done more to spread green consciousness *and* green *practices* through society than I have in a lifetime of speaking and writing and consulting.

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A libertarian participant on a LinkedIn discussion group posted,

how does business do anything to make you miserable ??

dont like their products then dont buy them

without biz making those things you would [be] naked growing your own vegetables in the wilderness

My response:

William: I know you espouse libertarianism but I don’t think of you as naive. I was once a member of the Libertarian Party, and still see a great deal of merit in libertarian approach to foreign policy as well as civil liberties; I would love to see Ron Paul as US Secretary of Defense, because if HE were willing to go to war, the situation must be dire indeed. But when you write,

You come across as VERY naive. Or are you pulling our collective (yes, a loaded word in libertarian circles) chain?

Consider…there are many corporations that do great things, create reasonably enjoyable workplaces, and work to heal the planet. BUT, worldwide, there are others that 1) create utter misery for their employees (think about the sweatshop workers in the factory that burned in Bangladesh a year or two ago); 2) pollute and destroy the neighborhoods they’re located in, causing severe adverse health effects for their neighbors and others; 3) rape the earth for their raw materials and then dump the toxic leftovers back on the poor, beleaguered planet, taking no responsibility for their actions.

You will say to #1 that no one forces people to work in slave conditions; they could just go off and start their own business if they don’t want to work for “The Man.” I did that, and from your ID line, it looks like you did, too. But that’s disingenuous. Not everybody can think through that alternative, not everybody has access to even a sliver of capital. If you’re making barely enough to keep your family from starving and from being thrown out of your one-room shack, even a few bucks will be too much.

I started my own business with $200. I was pretty poor at the time, but I did have the $200 (and even a bit more) in the bank. And I had to survive during the very lean start-up phase. At the time (1981), I knew almost nothing about marketing and was in a community that had little use for the service I was offering. I made $300 the first 6 months—before we moved to a more supportive community—and lived on a mix of rapidly depleting savings, odd-job income, and what my wife-to-be brought in from her meager job at a restaurant. But I had that luxury! I had a couple of thousand in the bank that I could draw from. Many people in developing countries, or even in our own inner cities and poor rural areas, do not. If they have no job and they start a business that isn’t immediately viable, how do they eat?

I would have more respect for the libertarian position if it accepted responsibility for #s 2 and 3. But libertarians discredit themselves with me when they claim that it’s their right to plunder the earth because they got there first, and that it’s perfectly OK to extract the resources, pollute and dump wastes just because of that arbitrary fact.I don’t object to profit; I make a chunk of my living writing and speaking about how to be a better capitalist, after all. But I have no respect for businesses that claim they have every right to privatize their profit while externalizing—dare I say socializing—the harm. A true libertarian would see overharvesting and pollution/dumping as theft from others, forcing them to incur economic costs to clean up someone else’s mess. But somehow, the libertarians I know sound a theme more like “we got here first, too bad for the rest of you, and the mess is not our problem.”

Libertarians often cite economist Milton Friedman on the social responsibility of business to maximize profits. However, even Friedman saw a need to limit business. I went back to the source: his New York Times Magazine essay of September 13, 1970. And to my amazement, I found that Friedman added some major conditions to his remarks. Here’s what he actually said:

In a free-enterprise, private-property sys­tem, a corporate executive is an employee of the owners of the business. He has direct re­sponsibility to his employers. That responsi­bility is to conduct the business in accordance with their desires, which generally will be to make as much money as possible while con­forming to the basic rules of the society, both those embodied in law and those embodied in ethical custom. (emphasis added)

At the very end of the essay, he quotes from his own textbook and repeats the qualifier, phrased a bit differently:

“there is one and only one social responsibility of business–to use [its] resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.” (emphasis added once more)

To put it another way, in this essay, Friedman was totally willing to concede that self-rule doesn’t always work in the business world. Government is needed to keep business from exercising its self-interest at the expense of others’ self-interest and the wide society’s interest. Whether it’s a retailer avoiding the cost of health insurance by paying its workers so little that they qualify for government assistance or a manufacturer spewing poisons into the air and water and land, expecting that the government—in other words, the taxpayers: we the people—to clean it up,  I would definitely count as “deception or fraud”: the externalizing of responsibility for the mess.

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When Bank of America bought Countrywide Bank for $2.5 billion in 2008, it inherited Countrywide’s infamous toxic mortgage policies.

By 2011, the Wall Street Journal reported that the acquisition had already racked up $20.6 billion in charges related to Countrywide’s shady mortgage practices:$8.5 billion to investors, $5.5 billion into a defective-mortgage payback fund to cover future claims, and $6.6 billion in various other costs.

And now there’s more bad news for the company’s shareholders: a $16.65 billion settlement with the Justice Department over the Countrywide mortgages. And let’s not forget the legal bill, now around $70 billion, not to mention the possibility of criminal prosecutions.

In short, Countrywide’s disgusting practices have now cost Bank of America over $107 billion: more than 50 times the acquisition price.

Lessons to businesses:
1. Business ethics is a lot cheaper than predatory practices
2. Be very careful when you buy toxic “assets” that turn out to be big liabilities

I’ve been making the case since at least 2002 that green and ethical business practices are more profitable than crooked ones. If you’d like to know more, please pick up a copy of my . It’s been on the best-seller list at least 32 months, so I guess people find it pretty useful.

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A front-page story in the Minneapolis Star-Tribune reports that a court ordered a utility company to buy the organic grass-fed cattle farm it ruined by driving a powerline through it. Nice to see David beat Goliath every once in a while.

Hmmm. Maybe this strategy can be applied (at least in Minnesota) by organic farmers suffering the double indignity of losing their organic status because of contamination by GMO plants from nearby farms, and then getting sued by Monsanto for illegally using the seed they didn’t want in the first place.

But a far better solution, of course, is to develop projects in ways that don’t threaten organic farms. We need more of those, not less.

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Very interesting post on Business Week: “Can Small Businesses Start a Gay Rights Movement in Mississippi?

I totally support nondiscrimination in any public accommodation or retail setting—and I’m delighted to see the “We don’t discriminate. If you’re buying, we’re selling” campaign in Mississippi. But at the risk of alienating some of my friends, l think service businesses–especially values-based ones—are a different case. Before you jump all over me—read the language I send to new prospects for my marketing and consulting services:

Please note that I reserve the right to reject a project if I feel I’m not the right person for it. This would include projects that in my opinion promote racism, homophobia, bigotry or violence–or that promote the tobacco, nuclear power, or weapons industries–or if I do not feel the product is of high enough quality that I can get enthusiastic about it.

Notice that this language doesn’t discriminate against a person or class of people–but it certainly does discriminate against a set of beliefs.

Now, if I reserve that privilege for myself, how can I possibly justify withholding it from someone else who runs a service business and has different values than mine?

Also, there’s a provider quality issue. If I were forced to write a piece of marketing copy for a product whose values I despised, I would do a terrible job. Even if I consciously tried to do my best, it would come out shoddy and insincere, because I wouldn’t believe in what I was promoting. By the same token, I can’t imagine why a same-sex couple would WANT to hire a homophobic wedding photographer (one of the examples cited in the article); the pictures will be terrible.

If you’re renting a room, buying a sandwich, riding a bus, patronizing a theme park…yes, you should have the right to be served. But if a service provider is being asked to use specialized skills to support a cause that service provider finds morally repugnant, I’m not at all sure we should coerce that behavior.

Please comment below. I’d love to get some good dialog going on this.

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I choose not to participate in the always-crowded and frequently violent orgy of consumerism called Black Friday. I do my best to shop locally most of the time, I don’t like crowed craziness, and I know Black Friday is not really a help to local small businesses that can’t afford to deep-discount.

There’s an alternative celebration on the day after US Thanksgiving that resonates more with me: Buy Nothing Day: 24 hours without any purchasing activity. I can’t always do it; sometimes the gas tank is empty or I’m flying home from Thanksgiving in another part of the country. But this year, I see no reason to spend any money today.

Wikipedia has a nice page on the history of Buy Nothing Day and some creative incarnations of anti-consumerism.

Meanwhile, society at large is going in the opposite direction. I was really hoping that the big-box store openings would be a flop. Unfortunately, there were big crowds leaving their families to chase down bargains. This, I see as a blow against workers’ rights. I very much doubt that all the employees working yesterday were volunteering to work on a holiday. In fact, there are demonstrations at Walmarts all over the country today, protesting this encroachment on workers’ family time. In my area of Western Massachusetts, it’ll be 3 p.m. at the Walmart in Hadley.

 

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