Balancing People, Purpose and Profit
Over my 20+ years in business, I’ve worked at the intersection of balancing people and profit, the environment and social needs with profits, growth, and capital. It is often a tricky balance and for many businesses wanting to demonstrate their commitment to this balance, B Corp certification has offered a way to do this.
For businesses that seek B Corp certification, they are usually focused on values. They want their business to stand for something more than profit: community resilience, environmental stewardship, fairness for workers.
For businesses that pursue employee ownership, business owners often want their employees to share in the wealth they helped create, to keep the company rooted locally, and to pass the torch with purpose.
Companies are using ownership models to reward employees with equity, share profits more fairly, and strengthen retention. Whether it is through an Employee Share Ownership Plan (ESOP) where employees buy into the business, or granting equity to key team members, ownership becomes a tool for growth—not just succession.
In addition, the new to Canada legislation around Employee Ownership Trusts (EOTs) provides a way for companies to plan tax-effective exits for business owners interested in a succession plan that maintains the founder’s legacy and keeps businesses locally owned.
These two movements—B Corps and employee ownership—are often seen as parallel tracks. But when you look closer, they are natural allies.
B Corp: Measuring What Matters
B Corp certification is rigorous. Businesses are assessed on how they treat workers, customers, community, and the environment. To pass, they must prove that they have embedded stakeholder values into their governance, not just their marketing.
One of the most powerful levers in the B Impact Assessment is ownership and governance. Who holds equity? Who has a voice in decisions? Who shares in the upside when the business succeeds?
Employee Ownership: Living the Values
That is where employee ownership comes in. Broad-based ownership—whether through an Employee Ownership Trust (EOT), an ESOP, or a worker cooperative—strengthens a company’s B Corp profile in tangible ways:
- Governance: When employees elect board members or participate in decision-making, the company earns points for democratic structures.
- Workers: When employees are shareholders, profit-sharers, or beneficiaries of a trust, the company is recognized for distributing wealth more equitably.
- Retention & Recruitment: Equity participation and ESOPs are powerful tools for attracting and retaining top talent—helping employees see not just a job, but a future.
- Community: Employee-owned firms are more likely to stay local, reinvesting in the communities where they are rooted.
In other words: employee ownership does not just check a box on the B Impact Assessment. It embodies the very purpose of the B Corp movement.
Why this Matters Now
For founders thinking about succession, the intersection of B Corps and employee ownership is powerful. Becoming a B Corp signals to the world: this company values people and planet. Transitioning to employee ownership ensures those values endure, even after the founder steps away.
For growing companies, employee ownership offers another benefit: it helps attract and keep the very best people. At a time when talent is hard to find and harder to keep, giving employees a real stake in the business—through equity, an ESOP, or profit sharing—creates deep loyalty and engagement.
B Corps and Employee Ownership: The Perfect Match
The story is simple but profound:
- B Corps put purpose into practice.
- Employee ownership puts purpose into people’s hands.
Together, they create businesses that are built to last—for employees, communities, and generations to come.
Ownership is not just a structure. It is a strategy for building resilient, purpose-driven businesses.
How Employee Ownership Strengthens B Corps Scores
| Ownership Model | How it Works | B Corps Impact Areas | Business Benefits |
| Employee Ownership Trust (EOT) | Business held in trust for employees, often through succession | Governance, Workers, Community | Protects legacy, keeps business local, shares wealth broadly |
| Employee Share Ownership Plan (ESOP) | Employees gradually buy into the business | Governance, Workers | Attracts & retains talent, builds long-term loyalty |
| Equity Grants / Profit Sharing | Employees rewarded with equity or profit participation | Workers | Boosts engagement, drives performance, rewards contribution |
| Worker Co-operative | Employees own and govern directly | Governance, Workers, Community | Fully democratic, high engagement, strong retention |
The Payoff of Aligning B Corps and Employee Ownership
- Higher B Impact Assessment scores in Workers and Governance
- Stronger recruitment and retention
- More equitable wealth distribution
- Companies that remain rooted in their communities
B Corps measure what matters.
Employee ownership makes those values real.
Turn your values into a competitive advantage. Pairing B Corp certification with employee ownership strengthens your impact, builds loyalty, and creates a business built to last.
