to governments and other certification bodies, especially as regulatory expectations around climate and social impact continue to evolve. “We have to ensure that B Corp standards are interoperable with other certifications,” says Davies, pointing out the importance of avoiding redundancies in certification requirements. By harmonizing standards with other organizations, B Lab makes it easier for businesses to focus on improving performance rather than simply meeting compliance. Furthermore, Davies believes collaboration is essential in changing the dominant narratives surrounding business. “For decades, we’ve been told that the role of business is to make money for shareholders,” he says, referencing the famous Friedman Doctrine that shaped corporate philosophy for much of the 20th century. “But that truth is outdated and doesn’t reflect our current economic and environmental realities.” He advocates for an alternative approach, where businesses operate profitably while addressing societal challenges like poverty, inequality, and climate change. OVERCOMING REGULATORY AND COST CHALLENGES Changing the way businesses operate is not without challenges. One significant obstacle is the enduring narrative that companies need “freedom” from regulations to thrive. Davies counters this by pointing out that regulatory measures like climate disclosure are becoming the norm, pushing companies to be more transparent. He also acknowledges that some sustainable choices may be more expensive in the short term, requiring leaders with “moral courage” to prioritize long-term impact over short-term gains. Davies emphasizes the need for leadership that goes beyond traditional business skills. “We need business leaders who can exhibit moral courage 25 BUSINESS VIEW OCEANIA VOLUME 06, ISSUE 11 B LAB AUSTRALIA & AOTEAROA NEW ZEALAND
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