As business owners, achieving a balance between profitability and social and environmental responsibility has become increasingly important in today's world. B Corporations, or B-Corps, play a pivotal role in setting high standards for social and environmental performance. More companies are now pursuing B Corp certification to showcase their dedication to these values and to reap the benefits associated with this prestigious status.

Simultaneously, there is a growing trend of businesses promoting long-term success and employee buy-in through Employee Ownership Trusts (EOTs). Many B-Corps are now exploring EOTs to further their social and environmental goals, solidify their core values, and empower employees.

In this article, we explore how integrating Employee Ownership Trusts (EOTs) within the B-Corps framework can enhance business performance and make a significant positive impact on society.

Understanding B Corps

In recent years, businesses have shifted towards B Corps for numerous benefits, including attracting employees, building professional relationships, and protecting core values and missions. Becoming a B Corp helps a business stand out in its sector and gain a respected status among competitors.

According to B Lab, there are over 2,000 B Corps in the UK. Additionally, there are more than 1,400 employee-owned businesses in the UK. Between 2022 and 2023, employee ownership increased by 37% in the UK. These companies meet rigorous standards of social and environmental performance, transparency, and accountability.

B Corps redefine business success by balancing purpose and profit, creating opportunities for all stakeholders. Legally, B Corps must consider the impact of their decisions on workers, customers, suppliers, communities, and the environment, ensuring a holistic approach to business.

The Role of Employee Ownership Trusts

GS Verde Group has helped many businesses complete EOTs, promoting longevity and growth. An EOT allows a business to hold shares in a trust on behalf of its employees, making them beneficial owners and aligning their interests with the business's success.

EOTs are increasingly popular for promoting long-term, sustainable growth, with employees owning majority shares. Business owners can retain some level of ownership, with employees' shares managed by trustees, including previous shareholders and employee representatives. After the transition, the trust controls the shares on behalf of the employees.

Benefits of EOTs for B Corps

Integrating an EOT into a B Corp strategy benefits employees, the business future, and exiting shareholders. Key advantages include:

• Core Values Alignment: EOTs align with B Corp's commitment to equity and social responsibility, creating a stakeholder environment.
  

• Enhanced Employee Engagement: EOTs increase employee satisfaction and loyalty, as employees gain part-owner status, boosting motivation and commitment.
  

• Long-term Growth and Stability: EOTs support sustainable growth, aligning with B Corp's focus on community impact and business resilience (B Lab U.S. & Canada) (Project Equity).
  

• Smooth Succession Planning: EOTs ensure a seamless transition, maintaining business values and goals.
  

Case Study: Miller Research

GS Verde Group assisted Miller Research, a leading agricultural research firm, in transitioning to an EOT. As a B Corp since 2015, Miller Research sought to enhance employee engagement and preserve company values. The transition to an EOT, meticulously planned and executed with GS Verde Group's guidance, resulted in increased employee engagement, financial performance, and a stronger work community.

Nick Miller, CEO of Miller Research, said, "The EOT has been transformative, ensuring sustainability and boosting engagement. Our team is more connected and committed than ever." Another team member added, "Being part-owners has given us a renewed sense of purpose. We're more involved in decision-making and feel a stronger connection to the company's goals."