This article is part of the Building a Sustainable Business series about starting and running a sustainable business. Read all the articles here.
Bellwether Materials is proud to announce that we are now a GIIRS Pioneer. GIIRS stands for Global Impact Investing Rating System which is part of the B Lab group. We have an almost perfect five-star rating, dented a bit by not using a local bank [see "'Cool' cash, cold heart," May 8, 2012] and because we don’t support nonprofits (the topic of a future column).
It’s our first certification of any kind because it’s so difficult to figure out what’s essential, what’s nice to have, and what is just spending money.
When I first started thinking about my own business, my ideas were based on anti-typical-business. Sort of like evaluating how your parents raised you, then doing the opposite with your own kids. First, I wanted a socially responsible business. This idea came from an old book I picked up in front of a bookstore in Oakland, years ago ("Social Marketing" by Lazer and Kelley, 1971). I think it’s the first to explore the concept of corporate social responsibility and since I was working at Chevron at the time, the messages in the book were especially powerful. Secondly, I was determined to have a deep green product that wouldn’t harm the environment or people. I was interested in proving that you could have a profitable business without sacrificing ethics.
While these ideas were percolating in my brain, I had no idea that there were thousands of groups that were certifying socially responsible businesses and another bunch that were certifying green products. In a casual conversation, I was told I had to have certification to prove our company was socially responsible. So I browsed though the companies that were certified and was puzzled to see that many of them made products that can kill you.
Then someone told me I also needed certification to prove my product is green. I called the most reputable local group to see about it and they told me it would cost me $20,000. $20,000! When I regained my power of speech, I said, “It’s wool! How could it cost $20,000 to prove it’s natural and safe?”
As soon as I started checking out the certifications people told me I had to have, I was shocked to discover they were everywhere. There aren’t one or two green product certifications, there are thousands. I asked people in the industry which one I should get and I didn’t get one answer, I got a list.
[pagebreak]The most irritating part for me was that no matter how socially responsible our company is or no matter how green our product, neither is valid unless a third party says so.
So I did some research. The first thing I found out was that anyone can set up a certifying group, including you and me. There is no oversight to certifying as a whole, although specific organizations can be set up by knowledgeable people. For example, our GIIRS certification was set up by impact investors who wanted to be sure that the companies they invested in were, indeed, socially responsible.
What is a new company to do?
In my case, I’m evaluating the people who set up the various certification programs. While most have .org after their names, successful certification groups are massive moneymakers. With nonprofits, extra money (i.e., profit) is distributed to those in charge. Even groups that start out by wanting to save the world understand that if their certification takes off, they will be as rich as any Silicon Valley entrepreneur.
LEED building certification is all the rage today. To get it, you have to follow standards set by the U.S. Green Building Council. Then you have to pay for classes to be certified as a LEED professional, more classes to maintain certification and yet more to get the building certified. Then you can be a member by paying dues every year.
Jim Coyle, who leads Pankow Builders green building group, says, “Certifications are, in general, a good thing. They push the market towards new levels of product and building performance. However, manufacturers and buildings owners should be wary, as recent studies have shown that certification does not always equal enhanced building performance.”
So, don’t be a sheep and just follow the herd. Take Jim’s advice: “Don’t automatically assume certification is required. If you choose to certify, evaluate these labels holistically, by cost in relation to recognition and validation, sustainability thresholds, integrity, branding and other elements that align with your values and needs.”
We now have validation that our company is socially responsible and I’m very pleased with the thoroughness and support of the GIIRS people. Next step is to find green product certification that I can be proud of and that won’t break the bank.
Priscilla Burgess is CEO, co-founder, and co-inventor of Bellwether Materials, an award-winning, triple-bottom line company that manufactures deep green building insulation made from an agricultural by-product. Before founding Bellwether Materials, she ran her own management consulting business. She has traveled all over the world, asking questions about how people work and from that, has developed several models and many opinions about the best way to grow a flourishing business.
Flickr Commons photo by heatherknitz.