BDC Guides Businesses on Measuring Societal Impact

The Business Development Bank of Canada (BDC) has published guidance aimed at helping entrepreneurs measure the broader positive impact of their business operations, in addition to financial performance. The guidance emphasizes that companies' societal contributions—such as job creation, support for local businesses, and environmental responsibility—should be evaluated and actively developed.

According to BDC, many entrepreneurs take pride not only in their business success but also in their company's positive societal footprint. This can include providing fair wages and development opportunities for employees, sourcing supplies from neighboring businesses, and actively working to reduce pollution.

The published guide outlines three steps for measuring impact. The first step, "Open your eyes," encourages businesses to critically examine all their activities and identify the beneficial value they already create. The second step, "Start measuring it," recommends utilizing tools like the Certified B Corp (B Corp) impact assessment, which is a free, confidential online tool.

The B Corp assessment covers five areas: how the company is run, how workers are treated, community engagement, environmental management, and whether products or services offer an inherent benefit. The third step, "Prioritize improvement," advises focusing on specific areas for enhancement, drawing on the assessment for concrete planning and development ideas.