Why B Corp? An engine accelerating the coexistence of business feasibility and sociality

Hello to all FabCafe fans! My name is Wataru Murakami, and I work as Creative Director at the Kyoto branch of Loftwork. The Kyoto office is located on top of FabCafe Kyoto, allowing for dynamic synergies among both teams.

In recent years, societal issues such as the loss of biodiversity and climate change have become too big to ignore. However, instead of a straight choice between protecting the environment or prioritizing economics, there are calls for a resolution that aims to strike a suitable balance between both sides. Although many people understand the basic concept that a “great company” is one that is beneficial for both the environment and society, the subject can be too extensive for them to get a good sense of what it entails.

I previously volunteered with a Regional Development Cooperation Corps to create jobs that took advantage of the unique characteristics of the land. At the time, one of the issues our group confronted was that even if you try to do “something good,” it may not be viable as a business or elicit empathetic responses beyond a certain level.

With these factors in mind, what makes a great company not only for shareholders and customers, but for the people who work there, the local community, and also the natural environment? This question was reexamined at the “crQlr Meetup Kyoto: Exploring balanced relationships between people and between humans and nature from the perspective of B Corp” held in FabCafe Kyoto in May 2023. As the title suggests, the event took as its point of reference the B Corp initiative—an international certification given to companies that act with high standards in all aspects of environmental and societal issues”

The following two points were included in the discussion as items in the “B Corp Interdependence Declaration.”  

• “All businesses shall operate in relation to humans and the climate.”
• “All acts should be conducted with the understanding that we are interdependent on each other, hence our responsibility to each other and the future generations.” 

One of the guests at the event was Yuichi Tomohiro, Co-CEO of Sea Vegetable LLC, a Japanese company that operates interdependently with local communities and the natural environment. Additionally, Lina Sakai from Fermenstation Co., Ltd., the first Japanese start-up company to receive the B-Corp certification in 2022, was welcomed as a guest. Their discussion also included FabCafe’s CCO Kelsie Stewart, who serves as the chairman of the crQlr Awards, a global award that designs a circular economy.

The first presenter was FabCafe CCO Kelsie Stewart, who was also involved in founding the crQlr consortium. She spoke about the functions of B Corp using the question “How are ‘great companies’ defined and measured?” as a starting point.

“There are various conditions that make a ‘great company.’ These include fulfilling social responsibilities, employee wellbeing, communication transparency, and satisfying customers. B Corp exists to provide a framework for realizing these aspects while also communicating the values of the company to the world.” (Kelsie)

Kelsie Stewart Loftwork Inc. Sustainability Executive / FabCafe Chief Communication Officer (CCO)

Yuichi Tomohiro, Co-CEO of Sea Vegetable, gave the next presentation. He started his session with the question, “How many varieties of seaweed have you eaten?”

“It may not immediately come to mind, but you’ve probably eaten at least a dozen or so types. Conversely, there are around 1,500 varieties of seaweed growing in Japan’s coastal waters. What’s more, none of them are poisonous, so they are an edible ‘treasure trove.’ Japan is on the cutting-edge when it comes to seaweed consumption and is gathering attention from all over the world.” (Tomohiro)

Popcorn covered in Sea Vegetable’s “dried green laver shavings” was distributed at the event. The rich aroma and flavors from just one bite were all it took to elicit surprised reactions of, “Did dried green laver always taste this good?”

Next, Lina Sakai, CEO of Fermenstation, made her presentation. Fermenstation is an R&D-based biomanufacturing startup centered on fermentation technologies. The company produces ethanol and raw fermented materials for use in cosmetics using rice grown in abandoned or fallow land, as well as unused biomass such as residual (pomace) produced in the manufacturing process of food and beverages, in addition to agricultural products that fall outside of distribution standards.

The latter half of the event featured a discussion among the presenters. Kelsie started the session with a question.

Kelsie: When did you feel that someone truly understood your company was not being run just to make a profit, but was a ‘great company’ that benefitted nature and society?

Sakai: I believe that basically everyone who works with us understands this from the bottom of their hearts. However, some imagination is necessary to understand what our company is doing. For example, it’s difficult for most people to immediately take the social issue of disposing of apple pomace seriously, so gaining understanding requires a little creativity. I think the team is getting through to them by doing things like providing explanations that help cultivate the imagination and taking people to see our worksite.

Tomohiro: Our clients are important, of course, but so are all the people who work for us. All of Sea Vegetable’s production sites are in remote locations where it is difficult for those with disabilities or seniors to find work. With that in mind, I believe it’s very important for them to be able to healthily live and work in those areas through their work with Sea Vegetable. We are incredibly grateful to them for all their hard work, and they are thankful for us, as well. The fact that this appreciative relationship exists likely means there is a mutual understanding in place.