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More investors seeking ethically responsible investments as Ethical Business rises

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by Startacus Admin


The impact of standards, ethics and conduct on business success and profits - Work.Life has some interesting insights...

Certified_B_Corporation™From hiring environment directors to running charity fundraisers, small businesses and major brands alike are doing more to be conscious of their effect on the planet. But can a business be ethical and profitable? ‘Business ethics’ may sound like a secondary topic, but the data shows that ethical businesses actually grow faster than those whose sole focus is profit.

B Corp certified businesses are a great example of this. To achieve B Corp status, a company must meet various criteria proving high standards of transparency, accountability, and social and environmental responsibility throughout their policies and practices. 

So, what do those investing in business think?

Investors take ethical decision-making and policies into account before backing a business. 82% of investors say they’re looking to increase their socially responsible investments, and 72% say they always screen investments for ethical or sustainability risks. This means that the companies with the most socially responsible practices have the best chances of seeing more investment and growth.

Businesses who are found to not be prioritising having a positive social impact are quickly dropped by investors and other potentially lucrative deals.

Most recently, style-setting reality show Love Island dropped their partnership with fast fashion brand I Saw It First in favour of eBay to promote sustainability and recycling in the fashion industry. This shows there is also increasing importance from businesses and brands wanting to collaborate with those working hard to have a positive impact on both people and the planet. 

Screenshot (363)On average, B Corps grow 28 times faster than the average business. The top-performing B Corps see consumer demand going up by as much as 14 times over a 5-year period. 

But how can this happen? 

Work.Life’s research showed that 4 in 5 people say they won’t buy from brands that are seen to be unethical. Their research also noted that 70% of consumers actively seek to shop with sustainable brands and companies and a further 82% say they won’t shop with unethical brands at all. 

The research surprisingly showed consumers' biggest concern when shopping with companies is how that brand treats their staff. 40% of those surveyed stated that this was the most important attribute of a brand, beating vegan/cruelty free products (24%), recyclable materials (20%) and green energy usage (14%).

This means B Corp organisations are more successful as the B Corp certification means that a business has had to go through vigorous checks to ensure they align with the B Corp values. It also means a consumer can easily tell a brand aligns with their core values and what’s important to them.

If you’d like to find out a little more about this interesting research, you can check out the full report via the Work.Life website.




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Published on: 30th June 2022

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