A B Corp is a business recognised for meeting high standards of social and environmental impact. Certification signals commitment to benefiting employees, communities, and the environment. We'll cover what B Corps are, how to get certified, and why it’s important for your business.
Key Takeaways
- B Corp Certification signifies a commitment to high social and environmental performance, promoting transparency and accountability within business practices.
- The certification process involves a rigorous assessment and requires businesses to undergo verification and recertification every three years to maintain their status.
- B Corporations engage in practices that benefit their workers and communities, aiming to foster a sustainable economy and address social inequalities through responsible governance.
Understanding B Corp Certification
B Corp Certification is more than just a badge of honour; it is a commitment to a better way of doing business. Certified B Corporations are businesses that meet high standards in terms of verified social and environmental performance. They also adhere to transparency and legal accountability. These companies strive to create a positive impact on their employees, communities, and the environment, going beyond mere profit generation. As a Certified B Corp, they exemplify the values of responsible business practices and are recognised as certified B Corp.
The holistic approach of B Corp Certification ensures that a business addresses multiple social and environmental issues simultaneously. This means that B Corps commit to using their business as a force for good, allowing independent vetting of their practices to ensure they truly benefit all stakeholders, not just shareholders.
The Certification Process
The path to achieving Certified B Corporation status requires navigating a rigorous evaluation process. Eligibility requires a minimum score of 80 points on the B Impact Assessment and passing a risk review. This online assessment evaluates a company’s performance in areas such as governance, workers, community, environment, and customers, requiring detailed supporting documentation.
A cornerstone of B Corp Certification is transparency. Companies must publicly share their performance according to B Lab’s standards, making their social and environmental impacts open for public scrutiny. Additionally, in-depth reviews of public records and randomised site visits are conducted to maintain the integrity of the certification.
Submission and verification fees are part of the process, adding a financial commitment to the rigorous standards. To become a Certified B Corporation, businesses must legally commit to the triple bottom line—balancing profit with people and the planet. This involves amending their Articles of Association to reflect this obligation, ensuring social and environmental impact is integrated into their core decision-making processes. If your company supplies products or services to industries that conflict with B Corp principles (e.g., supplying tobacco manufacturers, arms producers, fossil fuel companies, and a few others), this can also impact your eligibility. B Lab, the organisation behind B Corp certification, assesses supply chain practices and partnerships to ensure alignment with its values.
Verification and Recertification
Achieving B Corp Certification is only the beginning. To maintain certification, B Corps must undergo a verification process every three years, which is part of the corp certification process. This involves randomised site visits and thorough reviews to ensure ongoing compliance and improvement. This periodic verification underscores the commitment of B Corps to the continuous enhancement of their social and environmental practices.
Companies must recertify every three years to maintain their B Corp status. This ongoing cycle of verification and recertification ensures that B Corps do not rest on their laurels but continue to strive for higher standards and greater impact.
Key Differences: B Corps vs Benefit Corporations
It’s crucial to distinguish between B Corps and benefit corporations. A benefit corporation is a legally recognised corporate form that mandates stakeholder consideration in its decision-making, whereas B Corp Certification is a voluntary designation conferred by B Lab.
While benefit corporations are recognised through state law in the U.S. and focus on stakeholder impact, Certified B Corporations undergo a rigorous certification process to meet high standards of social and environmental performance. Notably, the benefit corporation legal structure and benefit corporation structure do not require certification from B Lab and are not obligated to meet its standards, which can affect their benefit corporation status.
While both aim to create positive social and environmental impact, their approaches and requirements differ. In the UK, we don't have the legal setup for benefit corporations like in the U.S. Instead, businesses here can aim for B Corp Certification to show they're serious about social and environmental responsibility. This certification lets UK companies embrace the spirit of benefit corporations, focusing on being accountable and transparent without needing a specific legal framework. It's all about proving they're doing good for people and the planet.
Global Reach of B Corps
The B Corp community is a global force, spanning 105 nations and 162 different industries. In Europe alone, over 1,700 B Corps are active across 30 countries, showcasing the widespread adoption and impact of this movement. B Corps are known for their accelerated growth in revenue and employee numbers, often outpacing their non-B Corp counterparts.
Membership in the B Corp community provides opportunities for collaboration and sharing best practices. B Corp events facilitate networking with like-minded organisations, fostering community and collective progress.
Governance and Accountability
Certified B Corporations must adopt stakeholder governance, ensuring accountability to all stakeholders, not just shareholders. This commitment to transparency includes making their B Impact Assessment scores publicly accessible. B Corps are expected to demonstrate fair compensation practices, including progress toward living wages for all employees
How B Corps Impact Workers
B Corps positively impact their workers by providing fair wages that allow for a decent standard of living. This concept has evolved to encompass a family living wage, addressing the needs of workers’ families as well.
The benefits of being a B Corp extend to enhanced employee retention and engagement, building a motivated and committed workforce. As of December 2023, Certified B Corporations collectively employ over 700,000 individuals worldwide, highlighting their substantial impact on the global workforce.
Prioritising fair compensation, comprehensive benefits, and favourable work conditions enables B Corps to positively impact their workers.
Environmental Performance Standards
Meeting specific environmental performance standards is a requirement for B Corps. This includes scoring at least 80 on the B Impact Assessment, which evaluates performance for environment, communities, customers, suppliers, employees, and shareholders.
B Lab’s Standards Advisory Council regularly updates the criteria, ensuring B Corps remain leaders in environmental stewardship. These rigorous standards demonstrate a company’s commitment to minimising its environmental impact and promoting sustainable practices.
Community Engagement and Impact
Most B Corporations engage their communities through policies and initiatives focused on social engagement and charitable contributions. Best practices among B Corps involve developing programs supporting diverse community needs and encouraging active employee participation.
Such companies prioritise supplier relations, fostering local economic growth and social well-being where they operate. B Corporations extend their impact beyond profit by enhancing community welfare through various social initiatives.
Benefits of Joining the B Corp Movement
Businesses joining the B Corp movement enjoy numerous benefits. B Corps foster trust with stakeholders, enhancing employee attraction and retention. The movement encourages open sharing of experiences and learning's, promoting collective progress and accountability within the community.
B Corps tend to have stronger governance structures, contributing to business resilience and higher innovation levels compared to traditional businesses. The movement’s emphasis on positive impact standards strengthens the case for becoming a B Corp.
How to Find Certified B Corporations
Working with and supporting Certified B Corporations is easier than ever. The B Corp Directory provides a comprehensive list of certified B Corporations globally, making it an essential tool for consumers. This directory allows users to discover B Corps in various locations, facilitating support for these businesses.
Consumers can use online platforms listing certified businesses to make informed choices and support companies aligning with their values.
Pathways to Certification for Different Businesses
Pathways to B Corp Certification differ based on company size, revenue, and industry. Small enterprises with annual revenue under 10M and fewer than 50 employees can use the Small Enterprise Guide for certification guidance.
Businesses generating between $10M and $100M in revenue or with 50-250 employees can consult the Small-Medium Enterprise Guide. Large enterprises with revenue over $100M or more than 250 employees have a specific Enterprise Guide to follow.
Companies with over $5B in annual revenue follow the Large Enterprise approach within the B Movement Builders program.
Continuous Improvement and Future Generations
B Corps focuses on continuous improvement, crucial for their sustainability and long-term impact. The B Corp community envisions a purpose-driven economy benefiting all stakeholders and future generations.
Current economic systems often result in social inequality and environmental degradation. B Corps aim to address these issues by creating a regenerative system benefiting people, communities, and the planet. As these challenges persist, it is clear that economic systems change is necessary for a sustainable future.
Why the B Corp Movement Matters
The B Corp movement pioneers the shift towards an equitable and regenerative global economy. B Corps positively impact all stakeholders, showing business as a force for good in society.
Collaborating with various movements and organisations amplifies the B Corp movement’s impact, driving progress towards a more sustainable and equitable future.
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B Corp Certification
- BIA Baseline & Discovery - Conducting a baseline assessment to identify your current B Impact Assessment (BIA) score and areas for improvement.
- BIA Action Plan - Develop a targeted strategy to improve your BIA score across key impact areas: Governance, Workers, Community, Environment, and Customers.
- Evidence Gathering & Submission- Collecting and organising documentation to support your BIA responses and prepare for verification.
- Verification Support - Managing B Lab inquiries and preparing for final verification to secure your certification.
We're here to help businesses boost their scores and offer a variety of environmental and social products and solutions to guide you on your ESG journey. Contact us today.
Summary
Summarising the key points, B Corp Certification represents a commitment to high standards of social and environmental performance, transparency, and accountability. The certification process is rigorous, but the benefits for businesses, workers, communities, and the environment are profound.
Considering B Corp Certification could be one of the most impactful decisions your business makes. Join the movement towards a more sustainable and equitable future, and see firsthand the positive changes it brings.
Frequently Asked Questions
What is a pending B Corp business?
A pending B Corp business is a startup or new company striving for full B Corp certification. This status reflects its commitment to high social and environmental standards, actively working towards transparency, accountability, and positive impact.
Is Amazon a B Corp?
Amazon is not a Certified B Corporation, as it has not completed the necessary steps to achieve certification despite its commitment to social and environmental performance. Therefore, it does not hold the B Corp status that signifies high standards in these areas.
Who is B Lab?
B Lab is a non-profit driving global economic change to benefit people and the planet. It sets standards and certifies companies as B Corps, recognising leaders in social and environmental responsibility.
Is B Corp worth it in the UK?
Certifying as a B Corp in the UK is worth it, as it enhances employee retention, promotes growth, and leads to improved governance. The lower average attrition rate demonstrates the positive impact on workforce stability and company culture.
How does a company become a Certified B Corporation?
To become a Certified B Corporation, a company must achieve at least 80 points on the B Impact Assessment, complete a risk review, and participate in a transparent verification process that includes public performance sharing and potential site visits.
