Shifting Gears: The Advantages of Being a B Corp
Business Strategies Prioritizing Geographical Areas: Emphasis on Regional Advantages for Corporate Gains
In under a year - spanning from January to March - an astonishing 220 enterprises have revised their charters, incorporating social and environmental welfare alongside profits. With a shift towards becoming benefit companies, these firms have undergone a remarkable genetic mutation, merging business value with a commitment to the greater good. According to the Brindisi-Taranto Chamber of Commerce Observatory and Infocamere's latest report, there are now 4,813 B Corps in the country - a 22% surge compared to the previous year, with an additional growth from 4,593 at the end of 2024. Nationwide, they account for 1.57% of all businesses, with large corporations displaying the highest concentration (19.8‰), followed by medium (9.6‰), small (3.2‰), and micro (1.3%) enterprises. This shift has been gaining momentum a decade after the law that welcomed benefit companies into Italy's legal system, with the 2015 Budget Law coming into effect in January 2016. Their influence is also growing on the Statista sustainability leaderboard and our website, where over 14% of the total is occupied by benefit companies this year, compared to 11% in the previous edition.
Striking a Balance That Delivers
"Choosing to be a B Corp today is about making a clear commitment to sustainability, beating potential regulatory uncertainties, and creating shared value that not only resonates ethically but also proves advantageous in terms of competitiveness," explains Mauro Del Barba, a key advocate for the law and the outgoing president of Assobenefit. He'll be passing the torch to Marco Morganti but will continue in the role of honorary president.
According to national research released in February, the transition to benefit status is beneficial: between 2021 and 2023, these companies have experienced a 26% growth in revenue compared to a 15.4% increase for traditional companies. They invest more heavily in innovation, internationalization, and sustainability, demonstrate increased attention to gender equality and youth representation on their boards, and create more jobs: 62% of them have boosted their staff levels compared to 43% for traditional companies.
A Four-Step Progression
Del Barba identifies four distinct stages of development for benefit companies. "The first, he says, was the domain of pioneers who embraced the new paradigm as part of their innate beliefs. Later, businesses adopted this approach because they recognized that considering the greater good alongside profit made them more competitive." The third stage involves supply chains, "with large corporations modifying their charters and gradually pulling their suppliers and customers along with them." The fourth, which is currently emerging, "is one where institutions increasingly see B Corps as a catalyst for social progress in the community." Two regions, Puglia and Veneto, have taken the lead with specific laws to support and promote these types of businesses. Rome set the pace last year with the Impresa Comune project, with other cities such as Milan, Bologna, Florence, and Taranto also looking into similar initiatives.
Top sustainable benefit companies hail from diverse sectors. Large players include Camst (catering), Lati (technical thermoplastics), and Reale Mutua (insurance). Medium and small enterprises like Acquevenete (one of the first Italian water managers to become a B Corp) and Gentili Mosconi (fashion) also shine. Cgn, the leading Italian provider of tax consulting services, is another example of a successful B Corp.
Insight:
Becoming a B Corp offers significant advantages, including a enhance reputation, better employee benefits, potential access to capital from socially and environmentally conscious investors, and an opportunity for operational improvement through a detailed assessment to identify areas for improvement in operations[2]. With the introduction of new standards by B Lab focusing on Climate Action, Fair Work, and Human Rights[4], the B Corp movement continues to evolve, ensuring it remains relevant and effective. Italian firms like Intesa Sanpaolo and Enel, while not yet B Corp certified, are making strides towards sustainability and social responsibility, aligning with the principles of B Corps. For a comprehensive list of Italian B Corps, visiting the B Corp website or contacting B Lab directly can provide more detailed information on certified companies in Italy.
Other industries are recognizing the benefits of adopting the B Corp model, combining financial success with a commitment to social and environmental welfare. Finance and business sectors can reap the advantages of becoming B Corps, such as improved competitiveness, increased revenue growth, and enhanced reputation. A recent study shows that between 2021 and 2023, B Corps have experienced a 26% increase in revenue compared to a 15.4% increase for traditional companies. By joining the B Corp movement, these sectors can align themselves with pioneering companies like Camst, Lati, and Reale Mutua, demonstrating a dedication to sustainability, social responsibility, and innovation.
