[Editor’s Note: Even experienced PR and communication professionals need a periodic refresher on the basics or insight about new material.
Here we offer a brief explainer about impact companies.
If there are topics you’d like to see discussed in this series, please let us know.]
Impact companies are organizations that focus on social and/or environmental impact. They seek to address and solve these challenges.
Impact companies are different from B corporations (B Corp), which have gained the designation through certification that they are "meeting high standards of verified performance, accountability, and transparency on factors from employee benefits and charitable giving to supply chain practices and input materials.”
While most B Corps are impact companies, impact companies are not mostly B Corp-certified.
Why It Matters to Communicators
Impact and/or purpose-driven business often is linked with Gen Z. That’s because it’s a generation seen as committed to improving society.
As Lemonade’s Nina Rauch notes in Fast Company, “if you build impact into your brand from the very beginning, you can connect with Gen Z consumers earlier on. Impact becomes the ‘backbone’ of your brand.”
One related trend is the prevalence of newly founded purpose-driven agencies that are able to be more selective about the clients they take on in an effort to live up to their mission; this may seen to some clients as an alternative to some of the larger agencies that may not always live up to their stated values.