How escalation of certification commitment catalyzes social impact

What is it about?

Why do some certified sustainable businesses aspire for greater impact while others do not? New research on B Corporations reveals a surprising pattern: companies that already met rigorous sustainability standards voluntarily joined an initiative that challenged them to improve their diversity, equity, and inclusion practices—and it paid off. Participants improved not just their DEI outcomes but their overall sustainability metrics. Plus, companies that joined the certification after the initiative had higher DEI scores too, creating ripple effects across the entire B Corp movement. But there was an unexpected twist: companies that were sustainability leaders but lagged on DEI were more likely to leave the B Corp community after the initiative. Call it the "paradox of inclusivity"—you can't cherry-pick which social commitments matter.

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Photo by Tim Marshall on Unsplash

Photo by Tim Marshall on Unsplash

Why is it important?

Key takeaways: • For certified organizations: Don't treat certification as a finish line—escalating your commitments drives real improvement and signals authentic purpose beyond the badge • For certification bodies: Strategic challenges can strengthen your community, improve collective performance, and attract stronger new members—but expect some exits from single-issue leaders • For policymakers: Voluntary business movements can create powerful momentum for systemic change even when there is heterogeneity in the extent to which they push members beyond minimum standards