Every business aiming to become a Certified B Corp™ must meet the PSG1.1 requirements for establishing a public purpose, regardless of size, sector and industry. So, your public purpose must explain why your business exists and identify the specific, meaningful positive impact it intends to make.
You therefore need to consider what matters most to your business: environmental impact, social impact or both.
Your purpose must go beyond reasons such as:
- generating profit
- providing good customer service
- producing high-quality products or services
- achieving growth or market leadership
These may be important business objectives, but they don’t explain the wider positive impact your business makes.
What to consider when establishing a public purpose?
You should craft an authentic statement that:
- identifies a specific social or environmental issue, opportunity or need
- explains who or what your business intends to benefit
- connects directly to your activities, resources or influence
- aims to make a meaningful difference
- remains realistic enough for your business to implement
If your purpose only refers broadly to helping society, protecting the environment or supporting customers without describing the intended improvement, it may need review by an experienced B Corp Certification expert.
An existing mission or values statement may qualify, but only if it clearly explains why your business exists and the positive impact it intends to make.
How should purpose shape your business strategy?
Your business must show that its purpose relates to what it does and guides its strategy. Evidence may include:
- business plans and annual goals
- policies and working practices
- programmes and budgets
- staffing responsibilities
- targets, KPIs and other measures
- communications with key stakeholders
If the purpose does not clearly show this connection, your business may need a supporting statement that explains its business relevance and strategic integration.
Where should your business publish and approve its purpose?
To meet PSG1.1, your business must:
- publish the purpose statement on its website or, if it has no public-facing online presence, through other official public information
- ask its highest governing body (the person or people with ultimate accountability for the business) to approve it
- keep evidence that the purpose is publicly available, integrated into its strategy and approved
Your purpose should also guide your business strategy, values, culture, policies and operations.
The public purpose should also be consistent with the purpose adopted to meet the B Corp legal requirement, and you should also consider wider B Lab™ Standards.
Choosing a suitable public purpose
Every business has a reason for operating, but that reason may not provide a suitable public purpose for a Certified B Corp. For example, the following statement may need a review because ‘strengthen local communities’ remains broad and does not explain the intended improvement:
We exist to strengthen local communities by building our business around independent suppliers and local economic relationships.
A stronger statement would identify the intended beneficiaries, describe the positive outcome and connect that outcome to the business:
We exist to strengthen local economies by creating lasting opportunities for independent suppliers and local businesses, helping the communities connected to our supply chain benefit from the value our business creates.
Another option could be:
We exist to strengthen local communities by creating sustainable trading opportunities for independent suppliers and local businesses, helping more of the value generated through our business remain within the communities where we operate.
Your business may still need an expert review to its public purpose covers activities, strategy and intended positive impact. When establishing a public purpose, avoid adopting wording that sounds positive but does not accurately reflect what your business can deliver.
Frequently Asked Questions
A public purpose explains why your business exists beyond making a profit. It identifies the positive social or environmental difference your business intends to make and should connect clearly to your activities, resources or influence.
A public purpose shows that creating positive impact is part of the business’s reason for operating, rather than a separate charitable activity or marketing claim. Under PSG1.1, it should also help guide business strategy, decisions and priorities.
Start by identifying a social or environmental issue, need or opportunity that matters to your business. Explain who or what should benefit, the positive outcome you want to support and how your business can realistically contribute through its work.
Possibly. An existing mission, vision, values statement or other high-level objective may meet the requirement if it clearly explains why the business exists, identifies its intended positive social or environmental impact and connects that impact to what the business does. If the wording is too broad, you may need to revise it or add a supporting public purpose statement.
You need to establish a clear public purpose, publish it on your website or through other official public information and obtain approval from your highest governing body. You should also show how the purpose influences your strategy, policies, goals and operations, and retain evidence of its publication, approval and implementation.
A B Corp Consultant can review your statement and help identify the evidence your business may need.
Need to know more?
Contact a B Corp Consultant for support establishing a public purpose that makes a meaningful positive impact, and discover the latest implementation guidance and recommendations.
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