B CORPORATIONS & ORGANIZED MONEY

“ORGANIZED MONEY lifts up the new inclusive economy we are building and explains that it cannot succeed without a financial system that moves beyond shareholder primacy. Mestrich and Pinsky offer us a vision of restorative capitalism, a call to action to work together, and a compelling strategy to get it done.”

B Lab co-founder Jay Coen GIlbert

ORGANIZED MONEY tells the story of B Labs and the international effort it leads to create a B (for Benefit) economy. Much of that reporting came from B Labs’ 2018 Champions Retreat in New Orleans, where the depth and breadth of the Benefit economy was on display. In addition we interviewed B Labs co-founder Jay Coen Gilbert and others who shared their aspirations and challenges.

Gilbert told me the a remarkable story about the origin of B Labs and the role of organized money. It is not widely known and it explains what drives Gilbert and B Labs. We recount it in Chapter 6: “The Public Purpose Economy.”

My co-author Keith Mestrich and I focused on B Corporations for several overlapping reasons:

First, the bank Keith leads, Amalgamated Bank, was the first bank to become a B Corporation and is proud of its part in the Benefit economy. In fact, B Labs recently honor Amalgamated Bank as a Global Champion.

Second, B Labs has helped lead the effort to challenge and overturn investor primacy, an effort that Amalgamated and the CDFIs (community development financial institutions) that I have worked with have embraced and demonstrated in practice, as do so many other Benefit economy companies.

Third, the recent Business Roundtable restatement of the purpose of business rejecting shareholder primacy has been a long time coming and holds potential to be an inflection point for the Benefit economy.

Fourth, and ultimately, our Organized Money strategy (in Chapter 11: “Organizing Progressive Money for Power and Influence”) requires a Benefit economy on the rise. More than anything else, that is what I wanted to get a feel for last year in New Orleans. We see Organized Money as the financial sector best able to advance a Benefit economy because it is 100% dedicated to its success.

Today I’m on my way the 2019 B Labs Champions Retreat in Los Angeles to see how far the movement has come. At first glance, it has grown substantially, and it appears that registration is up about 50%. The scope of the work is impressive. I look forward to reporting on what I learn and see.