Nearly 200 B Corps in Aotearoa New Zealand have proven that businesses working to benefit people and the planet can be profitable. Taking a longer-term view builds a stronger, more resilient economy. With the election around the corner, we are calling on the next government to raise the floor for how business is done, so more businesses can race to the top.
This is the moment for Aotearoa
Every election, parties promise growth, resilience, and a better deal for households. This one is no different. The cost of living, climate, health, and equity are all on the ballot, and need urgent action.
Making good on those promises depends on more than spending or cutting budgets. It requires working with businesses to change who they are accountable to, what they measure, and whose interests count in decision-making. Today’s economic system incentivises short-termism at great cost to people and the planet. That isn’t an accident: it’s built into the structures, expectations, and stories we tell about what business success means. We created this system, and we can change it.
Without addressing the flaws in our economy’s design, growth will only deepen today’s crises. Get the settings right, and businesses can race to the top.
The B Corp advantage
82% of Kiwi believe it should be mandatory for businesses to consider the interests of all stakeholders — people and the planet — in their decision-making. Our business rules that are set by government allow for it, but don’t require it.
B Corps make that commitment voluntarily, and go further: they commit to a purpose of having an overall positive impact on society and the environment. It’s not just a pledge; it’s embedded in day-to-day operations. Compared with ordinary businesses using B Impact, B Corps in Australia and Aotearoa New Zealand are:
- 7.8x more likely to help their suppliers adopt lower-emission operations
- 5.5x more likely to have a practice for improving supply chain biodiversity
- 4.7x more likely to tie executive pay to social and environmental performance
- 8.3x more likely to set public targets and share progress against them
- 4.2x more likely to explicitly acknowledge the rights of Indigenous peoples
It isn’t just good to do, it’s good for business. B Corps outperform ordinary businesses, showing greater resilience, stronger financial performance, and better risk management during economic shocks. For example, over 95% of B Corps stayed in business during the pandemic, compared to only 88% of non-B Corps. They continue to outperform their peers in both top-line growth and job creation, while maintaining higher employee engagement and delivering on social and environmental goals.
The bar keeps rising. The latest B Lab standards address today’s most pressing social and environmental issues and are tailored to a company’s size, location, and industry. They also align with evolving global regulations and standards, including Empowering Consumers for the Green Transition (ECGT). To stay certified, B Corps must set goals and demonstrate continuous improvement, meeting new milestones three and five years after certification. For larger companies, that includes actions like developing a climate transition plan to make a just contribution to the global goal of net-zero emissions by 2050.
Image: Elin Bandmann
Government raises the floor. Business races to the top.
Not every business will become a B Corp, and not every business needs to. What matters is that doing right by people and the planet is never a competitive disadvantage.
That’s the role of the government. Clear, consistent minimum expectations create a level playing field, and smart incentives reward the businesses that go further. We favour an enabling approach: transparency as a first step, and proportionate regulation scaled to business size where markets don’t price in harm.
We’re asking the incoming government to:
- Enable business decision-making to deliver purpose and consider stakeholders, starting with directors’ duties and the Law Commission’s review.
- Make business accountability clear, credible, and proportionate, from climate disclosure and greenwashing to lobbying and tax transparency.
- Make decent work and respect for people the baseline for doing business, including modern slavery legislation and gender pay gap reporting.
- Accelerate the transition to a low-emissions and circular economy, with stable emissions targets, incentives for design for repair, and investment in renewable energy.
- Improve incentives for businesses’ positive impact, through government procurement and investment.
Find out more about our policy agenda or our Aotearoa New Zealand election priorities.
Image: Elin Bandmann
What’s next
Before we accept promises of growth, we need to ask what kind. Growth built on short-term thinking pushes its costs onto workers, communities, and the environment. Growth built on better business strengthens all three.
B Corps are proving that this way of doing business is possible at all sizes, from sole traders to multinationals. But voluntary leadership can only take us so far. To make responsible business the norm rather than the exception, government needs to set the rules, and B Corps have already shown what’s possible.
We created today’s economic system, and we can redesign it. We’ll work with parties across the political spectrum to raise the floor, so more businesses can race to the top.
