In recent years, corporate responsibility programs like the BCorp Certification have revolutionized the business landscape. These social and environmental initiatives emphasize a paradigm shifts towards greater awareness and accountability in creating a more engaged, equitable, ethical and sustainable economy.
To some businesses, these certification and accreditation programs are a discrete marketing strategy, while for others they’re something much more: a public pledge, a badge of honor indicating a transformative process of improvement, a guiding compass for how to balance PURPOSE with profitability.
In this post we’ll explore “the good, the bad, and the ugly” of Corporate Social Responsibility (CSR) and Environmental, Social, and Governance (ESG) programs and discuss Diamond Brand’s unique perspective and approach.
WhAT ARE Corporate Responsibility PROGRAMS?
Corporate responsibility programs typically encompass the following principles and values:
- Environmental Sustainability — reducing environmental impact, establishing sustainability policies
- Social Sustainability — creating positive social impact
- Governance Sustainability — ensuring responsible and transparent business practices, aligning objectives with strategy
While adherence to these certification and accreditation programs is completely voluntary for most businesses, there is a growing trend to also voluntarily monitor and report internal performance and practices as consumers and stakeholders increasingly seek transparency and accountability.
The aim of these programs and labels is to help consumers make more informed decisions about their purchases.
B-Corp Certification: The Gold Standard
B Corp certification is perhaps the most popular CSR/ESG certification due to its comprehensive evaluation of a company’s operations and impact on society and the environment. This certification, administered by an independent nonprofit called B Lab, is embraced by hundreds of well-known brands across every industry and sector.
In order to achieve certification, companies must achieve a minimum score (above 80) on a rigorous online assessment of nearly 200 questions that includes data collection, documentation and a review of their pratices. The B Impact Assessment is an in-depth evaluation of their operations and internal practices related to governance, employee benefits, environmental footprint, and alignment with ethical and sustainability standards. It also reviews the broader impact of a company’s product or service on customers, the community and the environment, ensuring that core business activities contribute to social good or reduce environmental harm.
Because BLab certification is a privately issued designation, they make the rules. B Lab standards are routinely updated, businesses are re-evaluated every three years to maintain their status, and accreditation can be revoked at any time. As such, certification can feel like an ever-moving target.
Alternatives to B-Corp
While the B Impact Assessment is accessible for ANY business or organization to measure their impact, regardless of certification status, there are MANY other notable CSR programs and certifications available, each with distinct models aimed at driving positive change.
One way that B Corps can fulfill the legal accountability requirement of B Corp certification is to become an ACTUAL Benefit Corporation, a legal governance model that considers the interests of stakeholders, not just shareholders.
In becoming certified, companies commit to regularly reporting on their impact on people, planet and profitability. Then they are legally required to provide a benefit to society, in addition to the standard business goal of generating profit. While there are some formalities like annual reporting, it is a very affordable process that offers tax deductions and the freedom in pursuing social good.
This list from Greenhive has some of the most popular programs, which range by industry, fabric, materials, cause- everything for rewilding and reforestation to plastic reduction and climate neutrality.
Despite their diverse approaches to corporate responsibility, these programs share a common goal of encouraging businesses to prioritize a higher purpose, something bigger than themselves. By participating in these initiatives, companies not only enhance their reputation and appeal to socially conscious consumers but also contribute to meaningful change in addressing global challenges.
Gear for Good
Third-party verification labels can help guide consumers toward truly sustainable products by providing verified information about a product’s environmental and social impact. Research shows that when consumers are aware of and trust third-party verified labels, they are more likely to seek out certified products while shopping. On the other hand, many consumers are unaware of the significance of third-party verification labels and may not recognize them or understand their importance.
There is no way around it: Sustainability is becoming increasingly important to consumers. More and more consumers are making conscious and deliberate choices when purchasing outdoor gear and other products. Supporting ethical brands and businesses is one of the best ways to “vote with your dollars”, investing in quality products while also minimizing the negative impact that goes into the production process.
There are dozens of popular outdoor brands that have achieved B Corp certification. These businesses are not only reinforcing their commitment to distributing quality and durable outdoor gear but also to the meaningful details behind the scenes: eco-friendly materials, ethical manufacturing, and fair labor practices that influence communities globally.
Corporate social and environmental certification programs can help guide buyer’s decisions but regardless, will remain a priority to brands in the outdoor industry because of the clear alignment of values. Outdoor enthusiasts have an innate reverence and respect for nature which translates to supporting sustainability, conservation and other environmental causes. Because, after all how can we recreate in the world’s beautiful places without protecting and preserving them first?
71 percent of American consumers believe it is important for companies to have ESG guidelines and practices.
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Potential BENEFITS & Advantages of Corporate Responsibility
Embracing ESG certification such as BCorp can have a positive impact on a businesses operations and practices, and principles. It can strengthen their values and solidify a longterm vision for the future, and even result in greater revenue, improved financial performance and overall less risk.
- Marketing: Certification can improve a brand’s image and reputation by enhancing credibility, trust and loyalty from customers — especially Millennials, Gen Z and other consumers who prioritize sustainability and social responsibility. It can also provide a key differentiation from competitors, making a brand or business more competitive in the market.
- Community: Joining a certification program creates a belonging to a supportive network of global changemakers and opens access to professional coaching and other resources. It also improves the ability to attract and retain top talent and likeminded stakeholders.
- Longevity: Consistently identifying areas for improvement and tracking progress is a commitment to continuous improvement. The certification assessment process is inevitably an extremely valuable journey of growth and development, not just a destination to achieve.
- Social and Environmental: Demonstrating care, commitment and contribution to the greater good by providing a measurable positive impact on society and the environment
If you’re a business wanting to make a positive impact in the world, these certifications programs are just one of MANY ways you can make a difference. Check out the other strategies and practices of a sustainable outdoor brand.
Potential Criticisms & Challenges OF THIRD-PARTY CERTIFICATIONS
While certification programs are often rooted in good and seen as a sign of a brand’s commitment to sustainability and intention, their effectiveness is not always clear-cut. There are many diverse opinions within the industry – from clients, suppliers, manufacturers, and customers. A healthy amount of skepticism is understandable, as these certifications are often costly with questionable legitimacy or relevancy.
Of course, not all certifications are created equal. Every program has it’s own advantages and disadvantages. Some certifications are well-managed and meaningful, while others seem more like checkboxes or a means to an end.
Here are some other common concerns, criticisms and challenges which may cause some businesses and consumers to question their credibility or validity.
- Administratively Demanding: Some programs, like BCorp, require ongoing documentation and proof of compliance, which could be particularly challenging for smaller companies with limited staff and resources. The initial assessment and subsequent recertification process are known to be strict, time-consuming and costly, taking YEARS and thousands of dollars.
- Difficulty in Assessing ROI: Voluntarily self-reported data has the potential to be misrepresented, and there is little enforceability for non-compliance. Furthermore, noticing the tangible benefits of certification, if any, may take years, and because there are so few immediate returns and little enforceability for non-compliance, there are difficulties in assessing its impact. It’s no wonder that many critics and skeptics view ESG certifications as as a form of performative marketing or greenwashing more than a genuine, heartfelt commitment to social and environmental causes.
- Oversaturation in the Market: As more and more companies obtain ESG certifications, there will inevitably be a dilution effect which reduces the incentive for businesses to differentiate themselves. Furthermore, the sheer number of certifications available out there, and their overlap creates confusion and frustration for both brands, and consumers. Consolidating certifications could streamline processes and provide greater clarity and effectiveness for all. Regardless of how commonplace these certifications become, however, they should never minimize a businesses intention to improve, or a companies commitment to a broader purpose.
Choosing a certification program for your product or brand
Today’s consumers are interested in purchasing sustainable products, but understandably, they may struggle to differentiate between genuine sustainability claims and subtle marketing tactics.
Navigating the intricate landscape of over 400 ESR certifications can be overwhelming. It can be confusing to understand what’s truly behind each label.
We learned quite a bit in our own research, and we’re excited to share this information so that you can make informed decisions on your own journey of sustainability.
With so many different standards out there, it’s crucial to know which certifications you can trust. Here’s what to look for when deciding which programs to pursue:
- Stringency of Process: The difficulty of earning the certification
- Credibility of Issuing Organization: Assessing the trustworthiness of the organization issuing the certification, considering their history, reputation, and third-party involvement.
- Core Impact: Evaluating the real-world benefits of the certification in its primary area, such as environmental conservation or labor rights.
- Supply Chain Evaluation: Examining the company’s entire supply chain, from raw material sourcing to end-of-life disposal of the product.
- Holistic Impact: Considering the broader positive influence of the certification, such as benefits to the environment, society or communities.
- Ongoing Accountability: Checking if the program encourages continuous improvement of their practices through audits, updates to criteria, or other resources.
Our Approach
It’s no secret that manufacturing outdoor gear and equipment can have significant environmental impacts, from material extraction, processing, and production.
At Diamond Brand we take our platform and privilege seriously. To us, sustainability and responsibility goes beyond accreditations, memberships or public pledges. While we have chosen not to seek certification through BLab at this time, we still have an unwavering commitment to ethical and responsible business, and in the continuous improvement for years to come. We are genuinely, authentically dedicated to positive environmental & social practices and over our 140 year old history, we have the track record to prove it. We are an agile business and brand, always evolving and improving.
At Diamond Brand, we know that Sustainability is on-going effort– not a one and done activity or a box to be checked off on a list. By continuously evaluating our impact, measuring our progress, setting new goals, and adapting our operations and strategies to address each emerging challenge and opportunity, we are making a difference.
The Bottom Line
Despite their drawbacks, challenges and the burdens that fall on manufacturers, ESG certifications serve a crucial role in standardizing supply chain controls and ensuring sustainable and ethical practices. While no certification is perfect, fostering transparency and prioritizing ACTUAL impact over mere symbolism can lead to meaningful change in the industry. While we’d love to see a certification process backed by official regulatory agencies, we are committed to doing our best in the meantime.
Again, a certification is just one of many ways to determine a business’ commitment to the environment. By integrating intentional processes and practices into their operations, businesses can demonstrate their commitment to social and environmental responsibility while contributing to a more sustainable future.
Companies considering BCorp certification or similar corporate responsibility programs must carefully weigh the pros and cons to determine if it aligns with their values, goals, and resources.
At the end of the day, it is clear that Sustainability is no longer an option or choice for businesses looking to build a better future— instead it’s a non-negotiable PRIORITY. Corporate certification programs offer numerous benefits for businesses AND consumers who are committed to environmental sustainability and social responsibility.
While achieving 100% sustainability is nearly impossible, striving for on-going progress and growth that considers anything beyond profit, is the most important step forward. By working together towards our shared goals, we can achieve what no single organization can accomplish alone, paving the way for a more sustainable and resilient world.
We’re Here for You
At Diamond Brand, we value transparency so we’re happy to help spread awareness about third-party verification labels, educating both consumers and fellow businesses about their meaning and importance. We’re passionate about helping people make better choices, for their health, their wallet and the planet.
Want to stay in the loop on our Triple Bottom Line sustainability efforts? SUBSCRIBE to our email list below!
More Resources for Sustainable Businesses
– https://coolofthewild.com/sustainability-directory-for-outdoor-brands/
– https://www.ellenmacarthurfoundation.org/circular-design-guide/overview
– https://www.prana.com/sustainability/responsible-packaging-movement.html
– https://www.nongmoproject.org/little-labels-big-impact/
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