Community Oriented Impact Business Model

Community
#1

Hello!

Seeking clarification on this q pls: Does your company’s business model create a specific positive benefit for stakeholders such as charitable partners, vendors or suppliers in need, or your local community?

Future Super have diversified our supply chain significantly - we go to Supply Nation and the B Corp directory where possible, and have formalised policies and ethical supplier screening criteria.

Can I therefore answer YES for this q?

Thank you!

#2

Hi Lydia! :wave: It’s my understanding (and I’ll be forever learning!) that this question relates specifically to the type of business model (ie. product or service) that you offer.

The BIA distinguishes between Impact Business Models (IBMs) “doing impactful things” and companies who have impact through the way they operate, “doing things impactfully”.

If you select YES (which you can do to test it out). You will be asked the following question:

Is your company structured to benefit community stakeholders in any of the following ways?

  • A producer-owned cooperative structure in which suppliers share control and benefits of company operations (e.g. farmer cooperative, artisanal cooperative)
  • Purchasing fair or direct trade to improve livelihoods for underserved groups in your supply chain
  • A micro-distribution or micro-franchising model that provides economic opportunities to underserved groups
  • A formal standing commitment to donate a significant portion of sales, profits, or ownership to charitable causes (>2% sales, >20% profits/ownership)
  • A community-focused business model that supports and builds the economic vitality of local communities
  • None of the above

My sense is that the answer is No, although you might qualify for the second option? I’d say we might need to page @Mindy_B_Lab to the front check outs just to be sure! I thought I’d add the above to help others in the community who may find this post in the coming months/years!

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#3

Hi @LydiaHo - @alisonmichalk is spot on. Here are some other resources from the B Impact Assessment Knowledge Base that you may find helpful:

Keep in mind that most companies completing the B Impact Assessment have/qualify for 0-2 IBMs.

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#4

Hey Lydia, Alison is correct - buying from Supply Nation businesses could get you credit in “underserved supply chain” IBM which is the second option “Purchasing fair/direct trade to improve livelihoods for underserved groups in your supply chain…” but there are additional requirements that must be met, such favourable trade terms that are offered to these suppliers.

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