Cleveland-based Epoch Pi is proud of its standing as a values- and purpose-driven investment bank, stating "We believe we can create a better world through business" in bold letters on the company website.

However, firm co-founder and partner William Vogelgesang knows mere words don't mean anything without action. Epoch Pi helps its for-profit clients locate capital partners with an interest in social and environmental prosperity that benefit a wide array of stakeholders. Known variably as "impact investing" or "conscious capitalism," this burgeoning trend in corporate governance has also birthed a new organizational designation called the Certified B Corporation.

B Corporations meet standards of social and environmental performance, accountability and transparency as measured by B Lab, a nonprofit organization headquartered in Wayne, Pa. Companies carrying the B Corp designation are practiced in creating value for their employees, the community, the environment and other non-shareholding stakeholders. Advocates for the program say it's much more than a marketing ploy but rather a critical designation that comes with teeth.

B Lab named the first generation of B Corporations in 2007, with more than 2,300 firms in 50 countries bearing the title today. Epoch Pi is one of five companies in Cleveland — and 16 statewide — to achieve the status, according to B Lab.

Vogelgesang and co-founder Lynn Carpenter were inspired to pursue a B Corporation designation by Whole Foods Market co-CEO John Mackey, a leader in the so-called conscious capitalism movement. In an article he wrote, Mackey emphasized the "deeper purpose of service to others."

After becoming a B Corporation last year, Epoch Pi placed language in its operating agreement formalizing its commitment to conscious capitalism, a step that Vogelgesang said reflected the firm's multiple missions.

"It's easy for a company to say 'we do good;' that's called 'greenwashing' in the sustainability world," he said. "People were skeptical of (our mission), but when we decided to pursue a B Corporation designation, we received a lot of accolades. People said we were for real."

To get certified, a business must score 80 out of 200 possible points in a 150-question online survey. Companies are rated on everything from their energy efficiency efforts to employee programs to overall corporate transparency. Certification costs $500 to $25,000 annually, depending on company size, and is available to organizations with at least six months of revenue.

B Corporation designations are advantageous for companies that trade on their reputation, so a firm hidden within the supply chain is less likely to derive value from the certification, said Chris Laszlo, a Case Western Reserve University business professor and faculty director whose book, "Embedded Sustainability: The Next Great Competitive Advantage," touches on the benefits of B Corporations.

"Businesses with more visibility will be drawn to the certification," Laszlo said. "There's a big benefit in reputational value, and the certification is going to attract employees, make customers more loyal, and improve the brand image."

The boost in status does not necessarily make for an effective marketing tool, as B Corporations that fail to operate on a higher consciousness will likely find themselves under fire.

"If companies don't walk the talk, they're more likely to get pounced on by watchdog groups," Laszlo said. "We live in a world of extraordinary transparency. If you claim you're treating employees well or doing good for the environment and you don't do those things, somebody will put you up on YouTube or Glassdoor. The risk of a backlash is high."

Put simply, being a "force for good" must be ingrained into the organizational culture. Laszlo points to outdoor clothier Patagonia, a renowned B Corporation with a flexible work environment that includes on-site childcare for employees. Living up to certification validates Patagonia's employee-centric culture and attracts top candidates banking on the company's reputation as a great place to work.

Prosper for Purpose, a public relations agency and certified B Corporation based in Cleveland's Tremont neighborhood, develops public relations and branding campaigns for organizations pursuing a "triple bottom line," which means they are accountable not only for profit generation, but creating positive social and environmental impacts as well. Clients include an eco-friendly window and door manufacturer and the Cuyahoga County Board of Health — two different entities vetted on the same criteria that founder and CEO Lorraine Schuchart expects from her own company.

Certified as a B Corporation in 2016, Prosper for Purpose practices the values it preaches via a paperless office, three days of paid volunteer work for employees, and unlimited sick time.

Schuchart said becoming a B Corporation requires proving to the outside world that your company is a true boon to the community.

"In the marketing world, anyone can say they're anything, so it wasn't enough for us to just say we cared about the community or the environment," Schuchart said. "We liked the idea of a third party looking at our practices and saying we adhere to those values."

B Corporation certification is effectively a standard-setting process, one particularly important in the finance industry, where public trust is earned rather than given, Vogelgesang said. Epoch Pi is constantly searching the investment community for partners with the same values as its clients in compostable packaging, clean-water technology and other ethical business segments.

"The central philosophy is that we're all interconnected in some way," Vogelgesang said. "I can't win at your expense for very long. What most speaks to me (about B Corporations) is the vast majority of people aren't motivated by money. Having a grander vision than making money for shareholders is the glue that holds these companies together."

Using a third-party certification process as a guide also revealed Epoch Pi's need for fundamental HR and governance improvements, including installation of a diversity training program, Vogelgesang said.

Avoiding conflict between stakeholders is the ideal for traditional companies and B Corporations alike. The difference for B Corps is a legal commitment to act ethically, one that stakeholders will follow closely post-certification.

"People in stakeholder groups know you're trying to benefit everyone, and you'll get credit for that intention," Vogelgesang said. "The test isn't to be perfect. It's more that you're endeavoring to benefit all stakeholders while acknowledging one may be happier than another."