Transforming economic structures: The path to purpose-driven business in Spain
Central to B Lab’s strategy is the transformation of the structure—the laws, regulations, and policies— that sustain our current economic system. These frameworks, often prioritizing profit for the few at the expense of the many and our planet, must evolve to include broader stakeholder interests, including social and environmental impacts. This transformation is essential for achieving the scale of impact necessary to address the global challenges of today.
The journey towards the legal recognition for purpose-driven companies in Spain is an example of how B Lab is driving this structural change on a national level. The initiative, launched by B Lab Spain, began with the release of the Green Paper on Purpose Driven Companies in June 2021, which provided an in-depth analysis of the legal frameworks and international benchmarks for businesses committed to social and environmental missions. By identifying gaps and opportunities within the Spanish legal system, the Green Paper laid a robust foundation for advocating legislative reforms, marking the beginning of a concerted effort to secure the legal recognition for such companies in Spain.
Grassroot mobilization: a movement fueled by citizen engagement
The campaign stood out due to its strong grassroot mobilization, reflecting widespread citizen support for structural economic change. B Lab Spain’s efforts to mobilize public opinion and action has been pivotal in driving the movement forward. Individuals, companies, and organizations across the country supported by displaying posters in various public spaces, including advertising spaces, establishments, offices, and universities in Madrid, Valencia, and Seville.
The initiative also harnessed the power of digital platforms to build momentum. The petition on Change.org, which called for the creation of a legal framework that would recognize and support companies committed to social and environmental goals, garnered significant attention, amassing over 30,000 signatures. Social media also played a critical role in this mobilization, with the hashtag #EmpresasConPropósito (#PurposeDrivenCompanies) reaching thousands of people across the country. Additionally, B Lab Spain launched a Manifesto for the Legal Recognition of purpose-driven companies, securing endorsement from over 50 prominent Spanish figures, including Alfredo Gazpio, former Public Affairs Director at Danone, and Miguel Ángel Soto, Head of Campaigns at Greenpeace Spain.
Legislative milestones and ongoing advocacy
A significant milestone was reached on June 28, 2022, when B Lab Spain presented its legislative proposal to Congress, accompanied by the 30,000 signatures and broad political consensus. This pivotal moment underscored the necessity of statutory reforms to elevate corporate responsibility and accountability. The subsequent passage of the ‘Create and Grow’ Law on 30 June, 2022, marked another milestone, paving the way for developing regulatory frameworks and best practices tailored to purpose-driven companies.
Despite a delay due to the announcement of general elections in June 2023, B Lab Spain persisted with its advocacy efforts. The introduction of the SBIC (Sociedades de Beneficio e Interés Común) model at an event on July 5, 2023, underscored ongoing commitment amidst regulatory anticipation.
Looking forward: advancing the movement
While individual companies adopting purpose-driven models demonstrate positive behavior change, broader structural reform is crucial to catalyze the systemic transformation at the pace and scale needed.
As we hope to see the finalization of SBIC regulations in Spain in the second half of 2024, B Lab Spain remains committed to driving continued progress. The establishment of the SBIC Lab and ongoing advocacy efforts through platforms like the B Corps Working Group exemplify our dedication to fostering a supportive ecosystem for purpose-driven companies.
By influencing cultural narratives and behavior while advocating for structural reforms, B Lab aims to redefine success in business. Our efforts are not just about creating isolated pockets of change, but about reshaping the very foundation of how businesses operate — ultimately building a more inclusive, equitable, and sustainable economic future for all.