Tuesday, September 22, 2015

How B Labs is Promoting the Social Innovation Paradox?


Growing up in India in the 90's and early 00's, it would be safe to say that I was not always the most cognizant kid. However, I'd like to think that I was born with a gift for observation. From the time I was 6 years old, when my rickshaw driver ran over my foot because I was too busy wondering why the traffic policeman was being selective in his greeting of certain pedestrians alone, to when I was 10 and at birthday party where kids thought twice about choosing their flavor of candy (there was only one flavor). Now, before I get too nostalgic about the past, fast forward to the 00's when I could distinguish noble intentions from seemingly apparent ones. Now, I elude to this because, in the article 'The Best Businesses For The World In 2014, According To B Lab', a nonprofit certifying organization - B Lab has been certifying firms since 2012 based on their environmental and social responsibility standards.

How are they different from other certifying organizations? Well, to the naked eye, it would seem that they have devised an algorithm that considers factors beyond self-consumable wealth and the participating firm's profit motives. However, this seems to have given birth to a rather complicated paradox. With the need for public recognition and fine repute being more of a determinant in a firm's survival kit now more than ever before, they are fully cognizant of the importance of a certificate from a 'B Lab' like organization and the benefits it entails. Knowledge of this stems the question of whether they can fully separate themselves and their genuine social impact motives from peering into the dark abyss of money-making. Battling these Yin and Yang like forces would then cease to become a conscious effort and take on a more subconscious interference - one driven by forces far greater than anything within the realms of our control.

Although B Labs seems to use a very robust algorithm in determining a firm's actions, we are yet to establish a clear cut tool for measuring a human's motives (which perhaps, will elude us for ages to come). After all, by definition, social innovation differentiates itself from one that seeks profit, by having a non-profit foundation at it's core. With organizations such as B Labs now starting to give out certifications for such ventures, and this trend on an exponential rise as suggested by the article, we seem to be at the brink of an age where social innovation success is being redefined more disruptively that ever before - and not for the better. Will firms like B Labs truly break the social innovation base and turn it into a flimsy silhouette hiding a profit intended beast or will the noble social warrior fight the darkness and prevail?         

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