What is B-Corporation (B-Corp) Certification?
The B-Corp Certification is a third-party certification administered by the non-profit B Lab. It is designed to measure a company’s social and environmental performance, accountability, and transparency. The certification applies to the entire business and covers five key impact areas: Governance, Workers, Community, Environment, and Customers.
The B-Corp Certification is not just a status or a badge, but a commitment to uphold the highest standards of verified social and environmental performance, public transparency, and legal accountability. It is a way for businesses to differentiate themselves as leaders in the global movement of people using business as a force for good.
Why B-Corp Certification Matters
In today’s business landscape, consumers, employees, and investors are increasingly seeking out companies that prioritize social and environmental responsibility. The B-Corp Certification provides a concrete and credible way for businesses to demonstrate their commitment to these values.
Moreover, B-Corp Certification can provide a competitive advantage. It can enhance a company’s reputation, attract like-minded employees and customers, and open up new business opportunities. It also provides a framework for businesses to measure their impact and continuously improve their practices.
How to Obtain B-Corp Certification
Assessment
The first step to obtaining B-Corp Certification is to complete the B Impact Assessment (BIA). This comprehensive assessment evaluates a company’s overall social and environmental performance. It covers various aspects of a company’s operations and business model, including its impact on workers, community, environment, and customers.
The BIA is a rigorous process and requires businesses to provide evidence of socially and environmentally responsible practices. It is designed to be challenging, as it aims to identify businesses that are truly committed to creating a positive impact.
Legal Requirement
Once a company has completed the BIA and met the performance requirement, it must meet a legal requirement. This involves amending its governing documents to incorporate the consideration of stakeholder interests. This ensures that the company’s commitment to doing good is embedded in its legal structure.
The specific legal requirement varies depending on the company’s legal structure and location. B Lab provides resources and support to help companies navigate this process.
Certification
After meeting the performance and legal requirements, a company can apply for B-Corp Certification. The application is reviewed by B Lab, and if approved, the company is awarded the B-Corp Certification. The certification is valid for three years, after which the company must recertify.
It’s important to note that the B-Corp Certification is not a one-time achievement, but a commitment to continuous improvement. Certified B Corps are required to update their BIA and verify their score every three years, demonstrating their ongoing commitment to social and environmental responsibility.
Examples of B-Corps
There are over 3,500 Certified B Corps in more than 70 countries, spanning a wide range of industries. Some well-known B Corps include Patagonia, Ben & Jerry’s, and Seventh Generation.
These companies have demonstrated their commitment to creating a positive impact on society and the environment, and they serve as role models for other businesses aspiring to do the same.
The B-Corp Certification is more than just a certification. It’s a movement of companies committed to using business as a force for good. By obtaining B-Corp Certification, businesses can demonstrate their commitment to social and environmental responsibility, differentiate themselves in the market, and join a community of like-minded businesses working towards a more inclusive and sustainable economy.