A Study in Employee Engagement

1. Fortune 100 vs. B Corps: A Study in Employee Engagement Introduction That there is a war for talent in today’s economy is an understatement. The figures are familiar: The U.S. Bureau of Labor Statistics noted the December 2021 unemployment rate was 3.9%, very close to pre-pandemic levels. Two analysts from Jefferies Financial Group call today’s employment conditions, “a labor market on fire.”1 A cornerstone of attracting and retaining talent is building employee engagement. Engagement is reflected in employee perceptions of company attributes such as leadership and integrity. Positive perceptions create trust between management and employees that lead to engagement. Why does employee engagement matter? Organizations with highly engaged employees enjoy on average 21% higher profitability, 17% increased productivity and 41% lower absenteeism.2,3 As companies compete for talent, management teams typically look at their peers, manufac- turing companies competing with other manufacturers, for example. But they might do better to look at companies that have successfully built engagement. One group of companies often overlooked are organized with a very different structure than the typical profit-driven enterprise: B Corporations. B Corps are organized around three bottom lines: people, planet and profit. Aniline measures employee perceptions publicly available on a wide range of social media platforms. We use natural language processing to convert employee perceptions into structured data that can be analyzed quantitatively. We were interested in applying our methodology to study employee engagement levels at the Fortune 100 versus B Corps. Our key takeaway: B Corps often outperform the Fortune 100, despite often being smaller and less-resourced companies. Read on to see our findings. 1 2 3 https://finance.yahoo.com/news/u-road-1950s-style-unemployment-111418196.html https://news.gallup.com/poll/241649/employee-engagement-rise.asp https://www.gallup.com/workplace/236366/right-culture-not-employee-satisfaction.aspx

2. A Study in Employee Engagement Methodology The research includes 50 B Corps, each of which received at least 200 publicly available employee reviews and all of the Fortune 100, each of which had at least 3,000 publicly available reviews. We conducted the research in February 2022 based on reviews over the two-year period January 1, 2020 through December 31, 2021. Aniline tracks employee sentiment across nine categories. Brief definitions of each category are here; more complete definitions are included in the analysis below. • Integrity - Reflects employee sentiment about trust and fairness within the company. • Leadership - How employees perceive leaders across all aspects of supervision and management. • DEI - Demonstrates employees’ views on Diversity, Equity and Inclusion (DEI) policy, execution and commitment to women, minorities, LGBTQIA+ and other marginalized groups. • Workplace - Feelings about the overall work environment: physical, virtual and cultural. • Career - Employees’ perceptions of the company’s environment regarding career development and related capabilities. • Work/Life Balance - Reflects employee sentiment regarding separating work from other commitments and pursuits, e.g., providing adequate time to disconnect from work. • Compensation - Views concerning the fairness and competitiveness of the compensation programs. • Benefits - Employee opinions on how they feel about the value and adequacy of the employee benefit programs. • Hiring - Concerns employee thoughts regarding the hiring process, e.g., was it fair and efficient? This analysis includes results first across all categories in the aggregate and then of each category individually. We include a review of quartiles to offer a complete picture of how employees of B Corps evaluate their organizations versus Fortune 100 employees. These scores are on a scale of 0 to 100. More details on the Aniline process are at the end of this report. Executive Summary As the principal finding of this research, it is remarkable that B Corps are competitive and in many instances surpass Fortune 100 companies in employees’ assessments of critical factors such as leadership and integrity. It demonstrates that balance on people, planet and profits based on the three tenets of performance, accountability and transparency are a potent combination to attract and retain high-quality talent. When looking at quartile scores, among the 25% quartile (weakest performing companies in a given category) Fortune 100 companies were stronger in nearly every category. However, when looking at 75% quartile scores (strongest performing companies) B Corps outperformed the Fortune 100 in every category save two. 2

3. A Study in Employee Engagement It is remarkable that B Corps are competitive and in many instances surpass Fortune 100 companies in employees’ assessments of critical factors such as leadership and integrity. B Corps Outpace the Fortune 100 in Most Employee Engagement Categories Definition The Aniline Index is the average of the nine individual Aniline category scores (Leadership, Integrity, etc.), representing an overall measure of employee perception. Results Review Despite Fortune 100 companies having vastly more HR and related resources to improve employee engagement, B Corps and Fortune 100 companies earned almost exactly the same Aniline Index scores, with B Corps achieving an average score of 69, while the Fortune 100 earned an average of 71. Table 1 sets out these results together with the highest and lowest scores from the nine categories: Table 1: Average Scores for Select Sentiment Categories Category Composite (Aniline Index) B Corps 69.0 Fortune 100 71.0 Highest Score Benefits: 87.7 Benefits: 90.5 2nd Highest Score Workplace: 86.7 Workplace: 89.9 3rd Highest score Career, Work Life Balance (tie): 72.0 Career: 78.7 Lowest Score Compensation: 53.8 Integrity: 54.2 2nd Lowest Score DE&I: 59.9 Leadership: 56.6 3rd Lowest Score Integrity: 60.9 DE&I: 60.7 The fact that high average scores are registered in the same three categories - Benefits, the Workplace, and Career - in both B Corps and the Fortune 100 suggests that these elements of employee perception are not a driver of differentiation. As we will explore in the examina- tions of specific categories, the lowest average scores for B Corps (Compensation) versus the Fortune 100 (Integrity) is indicative of some innate differences between how employees perceive the two types of organizations. These averages also distort results by diluting the results of top performers with the lower scores, masking the distribution of scores among the continuum of results. We found that by looking at quartile groups - that is, the bottom 25%, the next 25%, and so on - the top performing B corps outperform the top performing Fortune 100 companies in all but one of the nine employee perception categories, and most notably in critical areas indicative of employee engagement and overall performance: Integrity and Leadership. 3

4. A Study in Employee Engagement Table 2: Results of quartile groupings for the Aniline Index; each category will be presented in this form for further analysis. Outperformance / (Underperformance) of B Corps vs. Fortune 100 (9.5) Category B Corps Fortune 100 Bottom Quartile Group Average 49.8 59.3 2nd Quartile Group Average 62.8 68.1 (5.3) 3rd Quartile Group Average 75.0 74.6 0.4 Top Quartile Group Average 88.5 82.1 6.4 Analysis • Despite typically being younger and smaller companies, sometimes with less experienced management and fewer resources for activities not directly related to product devel- opment or sales, B Corps punch above their weight. The same management thinking that drove participating in the B Corp process very possibly is also reflected in their leadership style and trust generated with employees. • While B Corps and Fortune 100 companies earned the highest scores in the same categories (Benefits, Workplace and Careers), we believe employees’ expectations differ among the two groups of companies, i.e., Careers to B Corp employees is more likely to focus on fulfilling a mission versus a Fortune 100 employee that is focused on promotion and remuneration. • While initially it may be counterintuitive that DEI was among B Corps’ lowest scores, it is our opinion this reflects the needs of most organizations to make more substantial progress in this area. It is also worth noting that despite the lower score, B Corps were statistically even with Fortune 100 companies in this category. Despite typically being younger and smaller companies, sometimes with less experienced management and fewer resources for activities not directly related to product development or sales, B Corps punch above their weight. 4

5. A Study in Employee Engagement Aniline Integrity Scores Definition The Integrity score reflects employee sentiment about the company’s cultural DNA concerning trustworthiness, honesty and fairness in the way it treats its people, vendors, suppliers and partners. Results Review B Corps outperform Fortune 100 companies on Integrity scores. We were not surprised given that progressive policies around people is a central tenet of B Corps. What is somewhat surprising is that the difference between the two groups of companies increases to more than 20 points when looking at the top quartile.. This difference shrinks when looking at the 2nd quartile group and reverses when looking at the bottom quartile of companies (22.9 for B Corps versus 35.8 for the Fortune 100). Table 3: Quartile Results for Integrity Category Outperformance / (Underperformance) of B Corps vs. Fortune 100 6.7 Category B Corps Fortune 100 Category Average 60.9 54.2 Bottom Quartile Group Average 22.9 35.8 (12.9) 2nd Quartile Group Average 49.1 48.0 1.1 3rd Quartile Group Average 77.7 59.5 18.2 Top Quartile Group Average 94.3 73.5 20.8 Analysis • Integrity scores are among the lowest across the nine categories for both B Corps and Fortune 100 companies, indicating relatively low concentration of positive sentiment in relation to negative sentiment. It appears there is a shift in trust driven by the changing relationship between employers and employees. Given the current labor shortage, greater access to information and word of mouth enjoyed by employees, more information about employers on reviews sites and social media, employees have much deeper insights into their employers than they have in the past. Contributing to the change in the relationship has been the long period of working remotely, which has caused employees to feel disconnected while complicating the ability of employers to build trust and engagement. • There is more homogeneity among Integrity scores for the Fortune 100 versus B Corps. The difference between the top and bottom quartile group averages for the Fortune 100 is 37 while among B Corps, it’s 71, nearly double. This indicates that there is significant weakness in employees’ opinions regarding integrity among the lowest quartile of B Corps, suggesting some disillusionment may exist among B corp employees. 5

6. A Study in Employee Engagement Given the current labor shortage, greater access to information and word of mouth enjoyed by employees, more information about employers on reviews sites and social media, employees have much deeper insights into their employers than they have in the past. Aniline Leadership Scores Definition The Leadership score is based upon employee sentiment regarding how leaders are perceived concerning all aspects of leadership including vision, communication, execution, and professionalism for line management and C-suite executives. Results Review B Corps outperformed the Fortune 100 companies in Leadership scores; B Corps also surpassed the Fortune 100 in all but the bottom quartile. It is not surprising to us that B Corps performed well in Leadership: the process of becoming a B Corp requires a strong vision for an organi- zation and the ability to work within an organization to demonstrate the value of the B Corp process and certification. Table 4: Quartile Results for Leadership Category Outperformance / (Underperformance) of B Corps vs. Fortune 100 8.2 Category B Corps Fortune 100 Category Average 64.8 56.6 Bottom Quartile Group Average 32.7 36.4 (3.7) 2nd Quartile Group Average 54.8 50.0 4.8 3rd Quartile Group Average 77.4 62.4 15.0 Top Quartile Group Average 94.3 77.4 16.9 Analysis • It’s clear employees at B Corps are enthusiastic about their organizations’ leadership. The difference in scores between B Corps and the Fortune 100 is 8.2, the second highest of the nine categories. In the top quartile, the spread is 16.9, the largest of the nine categories except for Integrity. • Once again, the bottom quartile of B Corps diluted the average score, but even so, were statistically close to equal of the Fortune 100 companies. 6

7. A Study in Employee Engagement It is not surprising to us that B Corps performed well in Leadership: the process of becoming a B Corp requires a strong vision for an organization and the ability to work within an organization to demonstrate the value of the B Corp process and certification. Aniline DEI Scores Definition The Diversity, Equity and Inclusion score reflects employee sentiment in areas such as DEI policy, execution and commitment to women, minorities, LGBTQIA+ and other marginalized groups in providing a fair, equitable and respectful workplace based on merit. Results Review DEI was the second-weakest performing category for B Corps and the third-weakest for Fortune 100 companies in terms of average scores. Only in Compensation did B Corps perform less strongly, while among the Fortune 100, only Integrity and Leadership were below DEI. Fortune 100 companies were statistically tied with B Corps on average Aniline scores for DEI, as they are for two of the quartile scores. Once again, the B Corps’ focus on “people” as part of the certifi- cation process is likely responsible for the B Corps’ relatively high performance in DEI. Table 5: Quartile Results for DEI Category Outperformance / (Underperformance) of B Corps vs. Fortune 100 (0.8) Category B Corps Fortune 100 Category Average 59.9 60.7 Bottom Quartile Group Average 39.3 48.8 (9.5) 2nd Quartile Group Average 52.8 52.8 -- 3rd Quartile Group Average 65.3 60.0 5.3 Top Quartile Group Average 82.2 81.2 1.0 Analysis • Both B Corps and Fortune 100 companies need to undertake more or different initiatives to improve these scores, which indicate that many employees do not believe management teams are doing enough to address these issues. B Corps’ focus on “people” as part of the certification process is likely responsible for the B Corps’ relatively high performance in DEI. 7

8. A Study in Employee Engagement Aniline Workplace Scores Definition The Workplace score reflects employee sentiment concerning the overall work environment: physical, virtual and cultural. It includes such aspects as collegiality, collaboration, teamwork, physical workspace and worker safety. Results Review B Corps and Fortune 100 companies scored approximately evenly on Workplace scores. Only in the bottom quartile of companies did the Fortune 100 outpace B Corps. In the other quartiles, the two groups of companies were statistically equal. Workplace earned the second- highest score from B Corp and Fortune 100 employees, just behind Benefits in average scores. Workplace is clearly an area of strength for both groups of companies. Table 6: Quartile Results for Workplace Category Outperformance / (Underperformance) of B Corps vs. Fortune 100 (3.2) Category B Corps Fortune 100 Category Average 86.7 89.9 Bottom Quartile Group Average 64.5 77.4 (12.9) 2nd Quartile Group Average 88.8 90.8 (2.0) 3rd Quartile Group Average 95.7 94.4 1.3 Top Quartile Group Average 98.7 97.0 1.7 Analysis • It is likely motivators for these scores are different for B Corp versus Fortune 100 employees. Fortune 100 employees are perhaps more driven by attractive workplaces, up-to-date technology and other tangibles. B Corp employees are perhaps more enthusiastic about collaboration and working toward common goals. Further study of these attributes could reveal such distinctions, as in our piece “An Employee Perception Analysis of DE&I in the Fortune 100” (https://www.aniline.io/blog/dei-leadership). • As with other scores, the Fortune 100 are more homogeneous in their employee sentiment. The difference between their top and bottom quartiles is under 20 points, whereas it is just over 34 points for B Corps, indicating once again that poorer-performing B Corps drag down average scores. Workplace is clearly an area of strength for both groups of companies. It is likely motivators for these scores are different for B Corp versus Fortune 100 employees. 8

9. A Study in Employee Engagement Aniline Career Scores Definition The Career score is based on employee sentiment concerning how employees perceive the company’s environment regarding career development, advancement opportunities, growth, learning and training. Results Review Fortune 100 companies achieved a higher average score for Careers than B Corps. This is due to the weak scores among B Corps in the bottom two quartiles. In the top quartile, B Corps pull slightly ahead. Scores for engagement regarding Careers are among the higher of the nine Aniline categories. It indicates that employees in each group believe their prospects for factors such as career advancement and learning are strong. Table 7: Quartile Results for Career Category Outperformance / (Underperformance) of B Corps vs. Fortune 100 (6.7) Category B Corps Fortune 100 Category Average 72.0 78.7 Bottom Quartile Group Average 42.5 63.7 (21.2) 2nd Quartile Group Average 68.3 77.3 (9.0) 3rd Quartile Group Average 82.7 83.5 (0.8) Top Quartile Group Average 95.2 90.4 4.8 Analysis • It is likely each group has distinct reasons for giving their employers high Career scores. For the Fortune 100, it is more likely the opportunity for career advancement, promotions and salary increases. For B Corps, it’s more likely the opportunity to fulfill goals to achieve a better balance between people, planet and profit. • In this category as well, the difference between the top and bottom quartiles is much larger for B Corps than the Fortune 100. Scores for engagement regarding Careers are among the higher of the nine Aniline categories. It indicates that employees in each group believe their prospects for factors such as career advancement and learning are strong. 9

10. A Study in Employee Engagement Aniline Work Life Balance Scores Definition The Work Life Balance score reflects employee sentiment regarding how well the company allows for adequate time to disconnect from work responsibilities for family and personal interests, to refresh and recharge. Results Review B Corps and Fortune 100 companies scored statistically evenly on average scores, with B Corps eking out a slight advantage among top quartile companies and the Fortune 100 pulling slightly ahead in the bottom quartile. In this category, the B Corps’ top quartile did not outpace the Fortune 100 significantly, nor did the bottom quartile drag down the average as signifi- cantly as it has in other categories. Sentiments reflected in the top quartile of both B Corps and Fortune 100 are very enthusiastic, B Corps’ and Fortune 100 top quartile scores exceed their respective averages by more than 20 points. Opinions on the bottom quartile are quite negative for both types of organizations. For B Corps, the bottom quartile is almost 25 points below the average and nearly 50 points below the top quartile. Similarly for the Fortune 100, bottom quartile scores are 19 points below the average and 41 points below the top quartile. Table 8: Quartile Results for Work Life Balance Category Outperformance / (Underperformance) of B Corps vs. Fortune 100 0.3 Category B Corps Fortune 100 Category Average 71.4 71.1 Bottom Quartile Group Average 46.8 52.0 (5.2) 2nd Quartile Group Average 61.3 63.6 (2.3) 3rd Quartile Group Average 82.3 75.4 6.9 Top Quartile Group Average 95.3 93.6 1.7 Analysis • Employees at both groups of companies have nearly identical sentiment about work life balance at their organizations. Of course, that balance may actually be quite different among companies. • It appears management teams at many B Corps and Fortune 100 companies understand the importance of creating a positive work life balance to attract and retain employees. • However, given that average scores are in the middle among other Aniline categories and bottom quartile scores are quite low, there is significant room for improvement. 10

11. A Study in Employee Engagement It appears management teams at many B Corps and Fortune 100 companies understand the importance of creating a positive work life balance to attract and retain employees. However, given that average scores are in the middle among other Aniline categories and bottom quartile scores are quite low, there is significant room for improvement. Aniline Compensation Scores Definition The Compensation scores reflect employee sentiment concerning the adequacy, fairness and competitiveness of the compensation programs. Do they reflect a fair value exchange for work and contribution to value? Results Review The most dramatic differences in sentiment occur in the Compensation category, both between B Corps and Fortune 100, and within the quartiles. The B Corp average score of 53.8 was the lowest for any B Corp category (the next lowest being 59.9 for the DEI average score), 15 points below the B Corp Aniline Index score of 69.0 and nearly 20 points below the Fortune 100 Compensation average score of 72.9. The difference between the top and bottom quartile group averages is also quite wide: 65 points for B Corps and 40 points for the Fortune 100. Table 9: Quartile Results for Compensation Category Outperformance / (Underperformance) of B Corps vs. Fortune 100 (19.1) Category B Corps Fortune 100 Category Average 53.8 72.9 Bottom Quartile Group Average 22.3 50.7 (28.4) 2nd Quartile Group Average 44.0 67.8 (23.8) 3rd Quartile Group Average 61.0 81.9 (20.9) Top Quartile Group Average 87.7 91.1 (3.4) Analysis • Within B Corps there is a misalignment of expectations between management and employees, especially in the second and bottom quartiles. This poor showing is surprising since prospects and employees know their organizations are often mission-driven, and consequently in these organizations compensation expectations are naturally lower than profit-focused companies. • However, many of the B Corps are smaller companies and work in industries, such as retail, where compensation for positions in sales can be quite low, so lower Compensation scores are understandable. 11

12. A Study in Employee Engagement • It is less surprising that the Fortune 100 companies scored at close to the overall average score (the Aniline Index) in Compensation. The list is somewhat weighted toward tech companies, where compensation tends to be higher than other industry averages. Within B Corps there is a misalignment of expectations between management and employees, especially in the second and bottom quartiles. This poor showing is surprising since prospects and employees know their organizations are often mission- driven. Aniline Benefits Scores Definition The Benefits score reflects employee sentiment concerning how people feel about the value and adequacy of the employee benefit programs to meet their needs throughout their life cycle. Results Review Benefits received the strongest employee endorsement among B Corps, earning an 87.7 average score. This score surpasses the B Corp Aniline Index score of 69.0 by almost 19 points. There are also very high scores in all quartiles, even the bottom quartile that has negatively impacted other B Corp category scores. The Fortune 100 companies enjoyed similarly strong sentiment results. The 90.5 average score is statistically tied with the Fortune 100’s Workplace score of 89.9 and is 19 points above the Aniline Index average of 71.0. Table 10: Quartile Results for Benefits Category Outperformance / (Underperformance) of B Corps vs. Fortune 100 (2.8) Category B Corps Fortune 100 Category Average 87.7 90.5 Bottom Quartile Group Average 65.3 74.3 (9.0) 2nd Quartile Group Average 89.8 91.7 (1.9) 3rd Quartile Group Average 97.5 97.1 0.4 Top Quartile Group Average 99.3 99.0 0.3 12

13. A Study in Employee Engagement Analysis • Both types of organizations achieved remarkably strong scores from employees for Benefits. This is surprising given the much lower scores for Compensation, especially among B corps. • These scores indicate management teams at both types of organizations have listened to employees and provided benefits programs that very successfully meet employee needs. Both types of organizations achieved remarkably strong scores from employees for Benefits. This is surprising given the much lower scores for Compensation, especially among B corps. Aniline Hiring Scores Definition The Hiring score reflects employee sentiment regarding the hiring process. Was it fair and efficient? Was the job ultimately reflective of the description once they were hired? Results Review Hiring category average scores for B Corps were 63.9, five points below the B Corp Aniline Index composite average. While top quartile scores are strong, all other quartile scores fell under the Aniline Index average of 69, indicating hiring practices by a large number of B Corps need to be reconsidered. Among the Fortune 100 companies, a similar pattern emerges. The average score for Hiring of 64.5 is about seven points below the Aniline Index score of 71.0, and all but the top quartile had scores below the composite average. Table 11: Quartile Results for Hiring Category Outperformance / (Underperformance) of B Corps vs. Fortune 100 (0.6) Category B Corps Fortune 100 Category Average 63.9 64.5 Bottom Quartile Group Average 44.6 52.2 (7.6) 2nd Quartile Group Average 54.1 56.8 (2.7) 3rd Quartile Group Average 66.4 66.6 (0.2) Top Quartile Group Average 89.9 82.4 7.5 13

14. A Study in Employee Engagement Analysis • It is not surprising to us that Hiring scores are a weak spot for both types of companies. It is a tremendous undertaking to overhaul hiring processes to ensure there is no bias in job descriptions, the interview process and other areas, as well as to ensure diversity represen- tation. It is a testament to B Corps, which by definition work toward the triple bottom line of people, planet and profit, that often with significantly fewer resources than Fortune 100 companies are able to perform on approximate parity - and where the best performers from the Top Quartile are receiving high praise from the labor markets. • Fortune 100 companies have an added burden that with offices around the world and in many U.S. states, they often have to tailor hiring practices to each location. It is not surprising to us that Hiring scores are a weak spot for both types of companies. It is a tremendous undertaking to overhaul hiring processes to ensure there is no bias in job descriptions, the interview process and other areas, as well as to ensure diversity representation Conclusion Talent is the cornerstone for success in today’s knowledge economy. To attract and retain the talent best suited for an organization, management must clearly define company mission and values, demonstrate the leadership to successfully progress in these areas, and do so with integrity. Whether a company with a traditional corporate structure or a B Corp —gaining and maintaining detailed, quantifiable measures of employee sentiment will enable management to gain a forensic understanding of how employees view their organizations, as well as their peers. These metrics enable management to adjust policies and practices to attract and retain employees in today’s hypercompetitive talent marketplace. For organizations especially focused on their people, as well as interested in protecting the planet but continuing to earn reasonable profits, Aniline scores show the B Corp certification process and guidelines clearly achieve strong results. B Corps, while typically less resourced than the Fortune 100, consistently earned employee sentiment scores that matched or surpassed the Fortune 100. B Corp certification is recognition that an organization is meeting very specific standards of verified performance, accountability and transparency in areas ranging from employee benefits and charitable giving to supply chain practices and input materials. The values that B Corps hold enable them to build trust with consumers, communities, suppliers and most importantly in today’s environment - employees. While B Corp certification may not be relevant for every organization, it clearly provides a model for embedding purpose in the employee value proposition for any organization eager to attract and retain employees in today’s talent environment. 14

15. A Study in Employee Engagement About Aniline Aniline measures employee perceptions publicly available on a wide range of social media platforms. We track sentiment across nine categories including Integrity, Leadership, DEI, Workplace, Career, Work/Life Balance, Compensation, Benefits and Hiring. Aniline aggregates millions of narrative employee reviews, scans them and runs them through a proprietary natural language processing (NLP) platform that provides statistical analysis and converts reviews into a 100-point index for each of the nine categories. All perceptions are updated monthly for 70,000 companies where English language employee reviews are readily available.