Advisor Perspectives is the leading interactive publisher for Registered Investment Advisors (RIAs), wealth managers, and financial advisors. In Advisor Perspectives, The Humphreys Group President Diane Bourdo, CFP® discusses why her wealth management firm decided to become a B Corp, and why other financial advisory firms should also consider getting the B Corp certification.
The B corp certification, which started in 2006, recognizes for-profit companies that use business as a force for good. B corp companies use the power of business to solve our most pressing global challenges, such as wealth inequality, climate change, and social unrest. B corp companies are working to reduce inequality, lower levels of poverty, make the environment healthier, strengthen communities, and create more high-quality jobs with dignity and purpose. There are over 3,500 certified B corporations in 150 industries and 74 countries.
“By becoming a B corp, you are putting your flag in the ground for what you believe in and are committed to doing in a public, transparent, measurable way,” Bourdo writes. “You’re showing your clients, employees, and community that you care about them and are committed to serving them.”
B corps are legally required to consider the impact of their decisions on all stakeholders. Becoming a certified B corporation is an extremely rigorous process. B Lab, the governing body of the B corp certification, reviews all business functions — ranging from the merits of the product offering, employee benefits and broader HR policies, and financial management, to the company’s involvement in the community, corporate governance, and environmental impact.
“Becoming a B corp formalizes what we already do and our commitment to it – and it inspires and motivates us to do better,” Bourdo writes. As a wealth management firm that’s a B corp, we want to do our part in changing the narrative about ‘profit at all costs’ in the financial services industry. I want to add our voices to the growing belief that making money and doing good can happen at the same time.”