Sistema B has published its Management Report — Argentina 2019. On this opportunity, we would like to acknowledge Sistema B’s efforts at the business community and its contribution to the Triple Impact companies’ global movement, endorsed by thousands of companies worldwide.
Sistema B is a Latin American organization that supports the “new economy” through the Triple Impact criterion, which measures companies’ success by their Social Impact (to guarantee the well-being of people), Environmental Impact (to safeguard the protection of the environment), and the redefinition of Economic Impact by admitting their profitability even when facing higher production cost, since consumers value products and services created with socioenvironmental responsibility. As a result, consumers tend to support those businesses concerned with social issues and climate change, even if their prices are on the high end of the spectrum when compared to products created with complete disregard of these concerns.
Regarding its impact in the legal field, it offers new business models, and grants certificates to companies that incorporate these parameters as binding obligations within their articles of association. Concerning this point, at Lerman & Szlak we are able to advise companies willing to operate under the Companies B modality, in order to support companies that wish to achieve sustainability and social welfare goals within their business models, while preserving their viability.
Sistema B values comprehend participatory construction (co-construction), interdependence, encouragement, innovation, diversity, and passion by offering a new paradigm of business success; with the objective of building a favorable environment for the businesses that use the power of the market to solve socio-environmental problems. Thus, Sistema B and its various parties work together to offer and implement options that allow financial growth, protect the environment, and produce positive social impact at the same time.
To create a multilateral community, it collaborates with the public sector, the private sector (investors, large companies), citizens, academia, and other international organizations (such as the IDB and UNDP) to promote its vision. Regarding the public sector, it encourages the adoption of regulations to promote entrepreneurship; and for this it has settled strategic alliances with the Government of the City of Buenos Aires, PROESUS, RIL, and the San Juan Province Development Agency to support sustainable growth through awareness agents, tax benefits (for ventures offering investment proposals), funding contests, technical assistance mentoring, training and workshops on impact measurement, and business training cycles.
Regarding the private sector, the Community of Companies B in Argentina reached 104 members in 2019 (celebrated with #Somos100). Together, they gather 5,745 workers, with an annual revenue over USD $ 630,000,000. Furthermore, the report reflects that the majority are small and medium-sized companies from the agriculture, manufacturing, retail, and services sectors with different levels of environmental impact. More importantly, it highlights that 1000 companies began to measure their socio-environmental impact during 2019, which is extremely positive.
Within Argentina, it has achieved the consolidation of five Local B Communities (NOA, Córdoba, Mendoza, Rosario, and Patagonia), together with the Sistema B team in Buenos Aires. Outside Argentina, System B relies on its strategic allies: Sistema B International, B LAB, and National Sistemas B present in more than 10 countries. At the regional level, it brings together a community of more than 500 Companies B, who advocated for legislative changes to create a new corporate option that promotes the Sistema B model.
Among its promotional activities, it offered several programs, workshops, and trainings to boost both Sistema B and Markets B, and make them more accessible to new companies. They also launched “Camino +B GAM”, to coach large companies in the process of measuring, managing, and improving their Triple Impact. Regarding its institutional managing, we want to highlight the activity of the Business Council (an advisory council that contributes to the financial sustainability of the organization), which aim is to position Triple Impact as a mainstream business concept. Moreover, the report offers a balance of the organization’s budget, showing a favorable economic result by saving 16.4% of its 2019 budget.
Lerman & Szlak celebrates the progress of Sistema B Argentina during 2019, and we hope that its perspective of socio-environmental economic development will continue to gather new member during 2020. We also applaud the companies that joined this community, and we invite all those interested in becoming B Certified Companies to take a chance on “redefining the meaning of success in the economy”.