B team raises the business bar

Common or garden stock companies have been wealth generators for hundreds of years, allowing boards to expand their businesses by attracting wealthy investors who seek attractive and reliable returns. The system is entrenched because holding shares in reputable companies is comparatively safe for investors and provides attractive returns.

- ALAN DEANS

Part of Andrew Davies's job as CEO of B Lab, however, involves throwing a spanner in the works.

A wave is growing in the US, Europe, Australia and other finance centres for a more stable system that benefits entrepreneurs and shareholders alike by adopting new rules for management. At its core, B Lab aims to soften the cut and thrust of the capitalist world, enabling successful managers to build value over the long term by becoming so-called B Corporations (the B stands for 'benefit for all').

Profile

Andrew Davies

CEO of B Lab, which supports B Corporation certification. Age 48, lives in Melbourne's inner north; ran a tennis racket-stringing business through high school.

An optimist with a passion for learning. Curiosity draws him to engage with people to understand what they are thinking. Enjoys relaxing at home with his two teenage boys and his wife, walking the dog and eating too much; wishes that he could live and work overseas. Grandfather bought him 100 Commonwealth Bank shares when he was about 12 years old, which he later used to partially finance a car and travel around Europe. "I'm doing something like that now with my boys via a broker called Sharesies." Says he is influenced by the author Simon Sinek, a leadership and training writer and speaker.

B Corp certification offers certainty for investors, too. Each B Lab member needs to consistently apply B Lab's accountability and transparency standards, which can require the modification of the company's constitution to embed purpose, and a commitment to considering the interests of all stakeholders in decision making.