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#4: Struggle for the Soul of the B Corp Movement w/ Erinch Sahan

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In February 2023, the Financial Times wrote an article entitled “The Struggle for the Soul of the B Corp Movement.” This article, among other things, detailed some of the controversy surrounding Nespresso’s certification as a B Corp in 2022.

Erinch Sahan from Doughnut Economics was quoted several times in that article with some strong critiques of the decision to allow Nespresso to certify. Erinch also had a number of structural critiques of the B Corp movement more broadly. He graciously agreed to join the show to discuss these concerns and other topics related to the future of business.

Erinch is the business and enterprise lead at Doughnut Economics Action Lab. His work focuses on transforming the deep design of businesses to enable them to pursue regenerative and distributive strategies. 

He has held leadership roles across business, NGOs, and government, including Chief Executive at the World Fair Trade Organization and seven years at Oxfam. Erinch has led market strategy at Procter & Gamble, established a furniture business, and worked for Australia’s Aid Program.

Erinch unpacks the concept of Doughnut Economics and how it can support our efforts towards an equitable economy. Together, we consider key areas necessary to move beyond capitalism and the changing landscape of B Corp related to its increasing commercial value. We touch on blockers in the deep design of a business, finding hope in a seemingly unchanging world, and what is really needed to create change. Thanks for listening! 

 

Key Points From This Episode:

  • Erinch’s leadership and strategic roles in business, NGOs, and government. 
  • Unpacking the concept of Doughnut Economics and how it supports an equitable economy.
  • His long term involvement in B Corp and his view on the different entry points.
  • Key areas of the machine of capitalism that are necessary to reverse engineer. 
  • A five-part look at what it means to analyze at the deep design of business.
  • SELCO India as a case study for renewable energy.
  • What it might look like to phase out the old economy. 
  • How the growing commercial value of B Corp has brought a broader set into the journey.
  • The importance of defining what B Corp is and is not.
  • Identifying what must be redesigned based on the stage they are at. 
  • What is necessary to create purpose-driven enterprises.
  • How to give people a sense of agency and remind them that the goal is not insurmountable. 
  • Putting conversations about what is not yet possible on the table. 
  • How to find out how deep sustainability efforts truly go. 
  • Upcoming mandatory requirements and increased process transparency. 
  • The need for a B Corp and B Lab that can be a custodian of a bigger conversation.
  • Three kinds of support necessary to create change.

The Two Loops Model:

The Two Loops Model below (adapted from the Berkana Institute) is referenced in the episode. This model is explained in more detail in our Next Economy MBA course.

Two Loops Model (Adapted from the Berkana Institute)

Quotations: 

“Finance needs to be in service to life, both human life and ecological broader planetary life.” — @erinchsahan [0:05:36]

“Being in service to financial capital is the key thing that we need to reverse engineer out of.” — @erinchsahan [0:17:01]

“Limits on the power of financial capital have to be explicit. If they’re not, they’ll get washed over.” — @erinchsahan [0:47:16]

“To create purpose-driven enterprises, we need to take some of the priority that’s given to financial capital and give it to other stakeholders and design companies in a way that enables this to happen.” — @erinchsahan [0:51:03]

“If all we do is celebrate the enthusiasm we have for the things we can do, we’re going to be deluding ourselves into thinking that.” — @erinchsahan [0:54:59]

“We need a B Corp movement that is able to be a custodian of a bigger conversation.” — @erinchsahan [01:04:03]

Links Mentioned in Today’s Episode:

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