Why we need change
Professor ian ramsay
university of melbourne
“It would be opt-in but the advantage of having it in our corporations legislation is that it provides certainty for directors, senior executives and key stakeholders that their actions are protected under law and that’s important because courts have told us in this country that every company director in Australia has a fundamental duty to act in the best interests of the company and that primarily is the interests of shareholders.”
Benefit Company STATUS is a key enabler of impact-driven business
Companies around the world – from small and medium enterprises to big multinationals – are rethinking how they do business.
In 2018, Unilever’s 28 Sustainable Living Brands – those taking action to support positive change for people and the planet – grew 69% faster than the rest of its business. That's up from 46% in 2017. They also delivered 75% of Unilever’s overall growth.
Unilever is one example of a big corporation moving towards embedding purpose and sustainability in its business. It’s a multinational company with 155,000 employees and 400+ brands. In 2018, the company made €51 billion in revenue.
Unilever’s subsidiaries include Certified B Corps like Ben & Jerry’s and companies incorporated as Benefit Corporations in the USA.
IT can create opportunities for Australia
Job growth: USA Benefit Companies are 1.4 times more likely than other businesses to have 25%+ job growth rate.
Local economic development: USA Benefit Companies are 1.2 times more likely than other businesses to have 30%+ of spending on local suppliers.
Investment: Sustainable investment that consider ESG factors totalled US$30.7 trillion across Europe, USA, Canada, Japan, and Australia and New Zealand in 2018, a 34% increase in two years.
it gives company directors and owners confidence and creates
opportunities for businesses
Directors and owners of impact-driven companies want confidence to consider stakeholder interests that relate to their business. Enabling these companies to opt-in to a model that recognises their pursuits provides them with more opportunities to grow their business.
Consumer loyalty: 66% of consumers say they are willing to pay more for sustainable brands.
Talent attraction: 67% of employees expect their employer to have a greater purpose and meaningful societal impact.
Business growth: Unilever’s 28 Sustainable Living Brands grew 69% faster than the rest of its business.