Bad actors, should we exclude or include them?

Walking the Line: Balancing Values and Impact in Client Partnerships

B CorpImpact reports

December 2, 2024

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Becky, Sarah and Marnie Hawson at B Corp Assembly 2024 - Three smiling women pose for a selfie at an outdoor B Corp event, with a large “B” sign and greenery in the background.

Yes, no…well, maybe.

Our approach has always been a balanced one, which means we avoid the heavily destructive, solely profit-driven focused businesses. That said,we are open to supporting the businesses in this bucket who are sincerely committed to improving their impact. 

Chapters:
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Bad actors, should we exclude or include them?

At B Corp Assembly 2024 I attended a ‘fishbowl’ debate on the question: ‘Should we include or exclude bad actors’? It’s a tricky question. 

On the one hand, excluding those who engage in harmful practices sets standards and makes a statement: you only support businesses that align with ethical, sustainable practices, which reinforces your commitment to integrity. In other words, live your values. 

On the other hand, working with bad actors can drive real change. Instead of shutting them out, we can guide them toward better practices. By influencing from within, we turn potential harm into opportunity, helping them adopt more ethical behaviours.

Here’s what I shared in the fishbowl, and how we navigate it at Harvey.

Yes, no…well, maybe 

Our purpose at Harvey is to ‘Unlock the potential of the New Economy to leave behind a better world’. Through their work, our clients help move the needle on some of the most pressing issues of our time, either directly or indirectly. For these folks, the ones really committed to impact, we offer 25% and 45% discounts. 

We found being clear about who you work with and – even more important – who you don’t, will naturally attract the right clients. It also saves you from awkward conversations, since those who don’t align with your principles tend to self-select out. 

How it works at Harvey

Our approach has always been a balanced one, which means we avoid the heavily destructive, solely profit-driven focused businesses  (we’re not going to be rebranding an oil rig anytime soon - never). That said,we are open to supporting the businesses in this bucket who are sincerely committed to improving their impact. 

How do we determine the impact of a business we haven’t worked with yet? Well, we have a framework, based on the UN's 17 Sustainable Development Goals (SDGs), to help us to make informed decisions about their commitments and ways of working. When we weigh up the information we gather during sales calls and info available online with the UNSD goals, we get an overall negative or positive score.

Step 1: UN Sustainable Development Goals (SDG) Rating

Prospective clients are assessed against the UN’s 17 SDGs as either:

  • Core to business
  • Indirectly impacting 
  • Neutral 
  • Improving negative impact
  • Minor negative impact 
  • Destructive

Step 2: Impact score calculated

Any ‘negative’ points must be balanced with positive points.  Any ‘destructive’ (e.g. mining, livestock, fast fashion, fossil fuels, gambling) ratings disqualify them from working with us. No ifs, ands or buts. 

Step 3: Impact discount level

Based on the prospective client’s points score, we decide their discount rate: Good (0% discount), Great (25% discount), Amazing (45% discount).

We’re big believers in ‘progress over perfection’, which is why we take on some clients who do have negative impact in some areas. Through this process, we’re able to strike up conversations, ask about their plans for improvement, and see if they’re open to learning about the process. 

The other big question is: Are they a ‘better’ alternative if people are going to be doing it anyway? 

Caveat: we know it’s not perfect 

Our framework is subjective, which is why we’re constantly fine-tuning the way we come at it. We also acknowledge the issues with the UN’s SDGs –  some see them as perpetuating structural oppression at a global scale, and others reckon they don’t really shift the dial on anything (all talk no action). We use them as a general guide to assessing our clients, rather than cherry-picking the good / bad stuff out of nowhere.

Values alignment with ways of working 

In addition to our assessment of their business impact, we also assess prospective clients for values alignment with ways of working to the Harvey values. Interestingly, we’re finding that, even when we work with ‘good’ actors solving major global issues as their core purpose, their way of operating doesn’t always gel with ours. At Harvey, we focus on working lean with clear outcomes. We value open communication, transparency and a willingness to try new things. Sort of a test-and-learn, iterative process. We call it ‘curiosity done well’. This is what we believe drives the greatest impact. 

The challenge often arises with larger organisations or non-profits, where bureaucracy, slow processes, and lack of team empowerment can create friction. Sometimes this means working on a strategy that doesn’t get implemented fast enough, becoming outdated. 

To address this, we’ve introduced values alignment in our proposals and check-ins. The purpose of this is to encourage open and honest conversations. It's our responsibility to provide a service that allows our clients to reach their goals and have an impact.

Change is slow, we need grace and a focus on progress over perfection

It’s important to recognise that change can be slow. It doesn’t matter so much whether you’ve reached the destination, just that you’re willing to start the journey. And when change does happen, especially in larger organisations, that’s when we can really shift the dial. So sometimes it’s about having patience, allowing grace, recognising the progress that’s happening and doing what feels right in your gut. At the end of the day, we’re just trying to walk that line between maintaining standards and offering support to those willing to change.

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  • Maintain B Corp score from 134.1 with workers included
🟢
  • We officially re-certified in November 2023, and are pleased to report we achieved the same score (to the decimal point). Wild! We shared our experience of recertification here.
  • Share templates, documents, insight into business for good
🟠
  • We haven't done this publicly, but when people have asked, we have shared. And we're sharing a series of things as part of this impact report.
  • Maintain current ownership and governance
🟢
  • Harvey is 100% owned by the Smallchua Family Trust. Rebecca Smallchua is our sole Director.
  • Re-use, recycle and manage dangerous waste
🟢
  • We continue to implement our hazardous waste policy and are on a continuous learning and improvement journey.
  • We repair damaged hardware and minimise purchasing of new equipment.
  • Personally we're all Facebook Marketplace fans.
  • Be climate positive at work and at home
🟠
  • We don't track our CO2 emissions, rather we take a much more general and high emissions view. However, this year, we didn't donate to the environment (see above) so we can't say we countered our CO2.
  • Advocate for climate change / inspire sustainable living
🟢
  • We hosted a panel event on Zero Emissions Day in September 2023, along with our friends at Portable, where we interviewed industry experts on the opportunity to engage with community and work towards a more sustainable future. Recording here.
  • Donate 5% to the environment
🔴
  • We didn't make the donation this year as we're revisiting our impact giving model - more details here
  • Invest $20k in impact businesses plus $20k of pro bono time
🔴
  • We delivered some pro bono time but dropped the ball and had no official measurements in place.
  • We also did not invest $20k in impact businesses, and are reviewing this goal going forward. In the last 12 months, our three Impact Investments all lost their value (Whole Kids, Pronto Bottle & Kester Black). While it's not great, we accept this is part of ambitious investing, and each had their own challenges that they couldn't quite overcome.
  • Buy with intention from local and discriminated groups
🟢
  • We continue to be intentional about our suppliers as outlined in our policy and report the details in the Community chapter of our report.
  • Protest and boycott important issues (Australia Day, Melbourne Cup)
🟢
  • Yes and yes!
  • 9 day fortnights, with option for 4 day weeks
🟢
  • 80% work 9 day fortnights, 40% part-time hours, 10% standard working hours.
  • Improve and increase capability across team
🟢
  • Raising our emotional health levels through a leadership development program with Global Leadership Foundation.
  • Expanding output skills: Market research, Web design, content & copywriting, strategy & development and automation strategy.
  • Targeted and clear personal growth, if we are better our clients will be
🟢
  • A new process for 360 feedback, plus personal goal setting questionnaires that ask the big questions of where we want to go and how we'll get there. Also lots of accountability check-ins.

Client survey metrics

  • 3 / 5 value for money (1 - 'could charge less' and 5 - 'could charge more')
  • 8 / 10 likely to recommend
🟢
  • 3.4 / 5 value for money
  • 9.2 / 10 likely to recommend

No destructive clients. Revenue breakdown: 17% Good, 59% Great, 24% Amazing

🟠
  • No destructive clients.
  • Revenue breakdown: 17% Good, 59% Great, 24% Amazing (A little over on Good and under on Great, but on target for Amazing - which is most important, so we're happy with that)
  • All staff spend 80%+ of their time on clients
🔴
  • Spent 64% of our time on clients (under). Due to team changes (recruitment, onboarding and offboarding) and extra investment in training, personal development and community engagement (e.g. B Local), we did not hit this target. On reflection, we will think 80% is too ambitious and we'll be revising to 70% going forward.
  • Regular, honest check-ins about how we feel
🟢
  • Stand ups, development sessions, watercooler chats, impact updates and more.

$994k revenue (Up $211k on FY2223)

🔴
  • $833,588. Revenue was up 6% YoY. Midway through the year, we adjusted down our target to $879k as team growth / services shifted. The main reasons we didn't hit target were scope creep and overruns, both of which we're trying to manage better with process improvements.
  • Maintain B Corp score from 134.1 with workers included
🟢
  • We applied for our B Corp re-certification at the end of this financial year and are pleased to report we achieved the same score (to the decimal point). Wild!
  • Share templates, documents, insight into business for good
🟠
  • We haven't actively done this publicly, but when people have asked, we have shared. And we're sharing a series of things as part of this impact report.
  • Maintain current ownership and governance
🟢
  • Harvey is 100% owned by the Smallchua Family Trust and Rebecca Smallchua is our sole Director.
  • Re-use, recycle and manage dangerous waste
🟢
  • We continue to implement our hazardous waste policy and are on a continuous learning and improvement journey.
  • We repair damaged hardware and minimise purchasing of new equipment.
  • Personally we're all Facebook Marketplace fans.
  • Donate 5% to the environment
🔴
  • We fell short here, we didn't make the donation. More details here.
  • Advocate for climate change / inspire sustainable living
🟢
  • Be climate positive at work and at home
🟠
  • We don't track our CO2 emissions, rather we take a much more general and high emissions view. However, this year, we didn't donate to the environment (see above) so we can't say we countered our CO2.
  • Protest and boycott important issues (Australia Day, Melbourne Cup)
🟢
  • Have a RAP, engaged stakeholders and implemented more change
🔴
  • Due to competing priorities and limited time (no lack in desire) we de-prioritised our Reconciliation Action Plan as we want to do it meaningfully and have the capacity to follow through. However, we took a few first steps outlined here.
  • Buy with intention from local and discriminated groups
🟢
  • We continue to be intentional about our suppliers as outlined in our policy and report the details in the Community chapter of our report. We took it one step further this year with a public call to pledge to audit suppliers in this campaign www.supplier-impact.com
  • Invest $20k in impact businesses plus $20k of 100% pro bono time
🟠
  • We delivered some pro bono time but dropped the ball and had no official measurements in place. We also did not invest $20k in impact businesses because of the reduced revenue with Becky on maternity leave.
  • Sarah personally donated her photography equipment valued at around $7,500 to empower a content and brand producer in the Solomon Islands.
  • 9 day fortnights, with option for 4 day weeks
🟠
  • 40% work 9 day fortnights, 40% part-time hours, 20% standard working hours.
  • Improve and increase capability across team
🟢
  • Elevated our tool nerd level. See here.
  • Expanding output skills: Market research, Web design, strategy & development, video editing, and automation strategy.
  • Targeted and clear personal growth, if we are better our clients will be
🟢
  • Lots of on-the-tools growth, structured learning through weekly Lunch 'n Learns and Intro to Programming at RMIT.

No destructive clients. Revenue breakdown: 15% Good, 60% Great, 25% Amazing (Here's what the classifications mean)

🟢
  • No destructive clients.
  • Revenue breakdown: 10% Good, 66% Great, 25% Amazing
  • All staff spend 70%+ of their time on clients
🟢
  • Spent 71% of our time on clients (over by only 76 hours).

Client survey metrics

  • 3 /5 value for money
  • 8 / 10 likely to recommend
🟢
  • 3.4 / 5 value for money
  • 8.8 / 10 likely to recommend

Maintain current revenue

🟠
  • Revenue down 16% YoY
  • Regular, honest check-ins about how we feel
🟢
  • Stand ups, development sessions, watercooler chats, impact updates and more.
No items found.
22 Bricks
ABCH
ATEC
Abundant Water
Anantaya Jewellery
B Lab ANZ
BZE
Bank Australia
CPSN
Certification O
Chaulk
Client Fabric
Clockwork Films
Common Ground
Compass Studio
Cyclion
Dog & Bone
Envirotecture
Evee
Farm My School
Fellten
Gewürzhaus
Global Leadership Foundation
Goodtel
Green Collar
Hagens Organics
Hey Doodle
Jasper Coffee
Jaunt
KOSI
KingPump
LVLY
Lee Christison
Lumen
MIIROKO
MK Local Foods
Marnie Hawson
Merry People
Nexa Advisory
No Lights No Lycra
North West Guadalcanal Association (NWGA)
OBG
One Small Step
Parliament of Victoria
Peninsula Hot Springs
Pixii
Portable
Possible
Prisma Legal
ReCo
Shadowboxer
Strongim Bisnis
Studio Schools Australia
THL Tourism Holdings Limited
Thankyou
The Next Economy
The Salvage Yard
The Sociable Weaver
Time
WIRE
Whole Kids
iDE
No items found.
22 Bricks
ABCH
ATEC
Abundant Water
Anantaya Jewellery
B Lab ANZ
BZE
Bank Australia
CPSN
Certification O
Chaulk
Client Fabric
Clockwork Films
Common Ground
Compass Studio
Cyclion
Dog & Bone
Envirotecture
Evee
Farm My School
Fellten
Gewürzhaus
Global Leadership Foundation
Goodtel
Green Collar
Hagens Organics
Hey Doodle
Jasper Coffee
Jaunt
KOSI
KingPump
LVLY
Lee Christison
Lumen
MIIROKO
MK Local Foods
Marnie Hawson
Merry People
Nexa Advisory
No Lights No Lycra
North West Guadalcanal Association (NWGA)
OBG
One Small Step
Parliament of Victoria
Peninsula Hot Springs
Pixii
Portable
Possible
Prisma Legal
ReCo
Shadowboxer
Strongim Bisnis
Studio Schools Australia
THL Tourism Holdings Limited
Thankyou
The Next Economy
The Salvage Yard
The Sociable Weaver
Time
WIRE
Whole Kids
iDE

No items found.
No items found.
22 Bricks
ABCH
ATEC
Abundant Water
Anantaya Jewellery
B Lab ANZ
BZE
Bank Australia
CPSN
Certification O
Chaulk
Client Fabric
Clockwork Films
Common Ground
Compass Studio
Cyclion
Dog & Bone
Envirotecture
Evee
Farm My School
Fellten
Gewürzhaus
Global Leadership Foundation
Goodtel
Green Collar
Hagens Organics
Hey Doodle
Jasper Coffee
Jaunt
KOSI
KingPump
LVLY
Lee Christison
Lumen
MIIROKO
MK Local Foods
Marnie Hawson
Merry People
Nexa Advisory
No Lights No Lycra
North West Guadalcanal Association (NWGA)
OBG
One Small Step
Parliament of Victoria
Peninsula Hot Springs
Pixii
Portable
Possible
Prisma Legal
ReCo
Shadowboxer
Strongim Bisnis
Studio Schools Australia
THL Tourism Holdings Limited
Thankyou
The Next Economy
The Salvage Yard
The Sociable Weaver
Time
WIRE
Whole Kids
iDE
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