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Please project the future growth of the sustainability, for benefit (conscious capitalism) industry in the US
Hello and thank you for asking Wonder! I understand that you are seeking the growth of the benefit/conscious capitalism industry. In short, there is a high rate of growth being seen, but exact figures are difficult to pinpoint. However, worldwide, there was a 67% increase in certified companies in this movement from 2015 to today.
METHODOLOGY
During my research, I found that there were no quantitative figures tracking this growth. However, there are figures for certain areas of it. My research turned up B Corporation (B Corp) status, however, which is a third-party certification from B Lab for companies that "meet rigorous standards of social and environmental performance, accountability, and transparency". Additionally, there are Benefit Corporations, which is a status allowed for by the majority of the states.
OVERALL GROWTH
B Corps have been a rising trend related to conscious/benefit capitalism. It has been estimated that the total number of benefit corporations (not just those that are certified) in the US is 3,000+. Unfortunately, they do not list this figure for prior years in order to calculate an actual rate of growth. However, in 2015, there were around 1,200 certified B-corps worldwide. Today, there are 2,003. This represents a growth of approximately 67%.
In general, this trend started around 2007. Since that time, the Harvard Business Review has referred to the growth as being exponential.
COMPETITIVE ADVANTAGES & PROFITABILITY
TSI Consulting did a survey on B Corps in 2016, of which 82% of the respondents were in the US. They examined different aspects, including the benefits. In terms of financial performance, which is expected to be positively affected by the status, they found that it had little to no effect for most organizations. One surveyed company credits this to the fact that most clients do not know of their status, so it is not a factor for them. However, non-financial performance, which includes things like brand awareness and investor interest, was positively affected by companies being B Corps. It has been theorized that being a B Corp negatively affects a company's overall growth, but TSI found this to not be true. In fact, three-quarters of respondents believed that it would have a positive effect. TSI feels that more research needs to be done and comments that the non-financial performance increases have a larger effect on financial performance than reported, due to the fact that the exact effects and correlation can be difficult to pinpoint. Additionally, they note that studies on the topic have shown a positive correlation in most cases.
While people think that being a conscious company comes at the expense of profits, this is not what is being seen. In addition to TSI's findings, there were 26 companies on the INC 5000 list that were B Corps in 2015; a figure for benefit corporations in general was not provided.
One competitive advantage for conscious capitalism companies is the ability to attract new talent and keep employees engaged and, therefore, more productive. Additionally, increased customer trust is also an advantage experienced by companies like this. Consumers would prefer to make purchases from responsible companies and if a company chooses to go with some sort of certification, like with B Corps, it makes it even easier for them to recognize companies following these standards.
When TOMS' founder was asked about whether he thought the company could do what it does as a public company, he stated yes. He goes on to explains that his investors expect returns like any other that invests in a business; that their mission is not just being seen as a charity that investors want to help. He has found that the company's investors see their mission and drive towards being a conscious company as a competitive advantage that will be beneficial to their investment.
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Overall, a high rate of growth is being seen for companies that are part of the benefit/conscious capitalism movement. Positive effects that have been seen include increased consumer trust, better non-financial performance, and growth.
Thank you for asking Wonder! Please let us know if we can help you with anything else!