What is B Corp?
As trained B Leaders, we specialise in taking businesses through B Corp. So, here’s our inside scoop on the business certification everyone’s talking about.
What is B Corp?
B Corp is a global business certification.
It’s based on a robust sustainability framework that measures the entire social and environmental performance of each certifying business.
What gives the B Corp certification teeth is the legal commitment businesses are asked to make. B Corps in the UK change their Articles of Association to adopt a stakeholder business model. That means B Corps are legally required to consider their impact on all stakeholders – not just shareholders.
The certifying body behind B Corp is called B Lab.
B Lab is a nonprofit network on a mission to transform the global economy to benefit all people, communities, and the planet.
B Lab creates standards, policies, tools, and programs to help shift business culture and behaviour. B Lab also mobilises the B Corp community towards collective action to address society’s most critical challenges.
Why do so many businesses want it?
Now more than ever, people are determined to work for, buy from, and invest in businesses with purpose.
Recent research from B Lab backs up this claim, showing Certified B Corp businesses outperforming their peers across several business metrics.
The B Corp logo is now globally recognized by consumers, investors, and business leaders, and its reputation is escalating at a staggering rate.
The first generation of B Corps (of which there were less than 20) was certified in 2007.
Currently, there are:
4000+ (and growing) Certified B Corps
In 71 countries
Across 150 industries
All with 1 unifying goal
“To make business a force for good”
And not to brag, but here in the UK, we have one of the fastest growing B Corp communities in the world.
How do you become a B Corp?
To become a B Corp, businesses must go through a rigorous certification process that involves several stages:
· Completing the B Corp Impact Assessment (BIA)
The BIA tracks and measures a business’s impact across 5 areas: Governance, Workers, Community, Environment and Customers. It’s an intensive assessment focused on actions (rather than promises) with points awarded for positive impact and improvements. A score of 80+ is required before a business can submit for certification.
· Verification
If you’ve gained enough points to submit, your BIA must then be verified by a B Lab approved analyst. They will request evidence and documentation to support your assessment. To help you with producing this documentation, you may find it helpful to use a writing tool to support your efforts.
· Make the legal change
If your business still has 80+ points after verification, you’ll be given a deadline by which your company’s Articles of Association should be changed to incorporate a commitment to work to a stakeholder model (rather than a shareholder model).
· Pay the fee and join the community
B Corp takes a fee for certification, which is on a sliding scale based on company turnover. As a fully paid-up certified B Corp, you’ll be furnished with the B Corp logo and invited to join the B Corp community.
· Recertify every 3 years
B Corp recognises that sustainability is a journey. Getting certified is not a box-ticking exercise that is done once and then forgotten about. To maintain your B Corp status, you’ll need to recertify every 3 years. And, to recertify, you’ll need to show improvement. But don’t worry, you will have set yourself goals and targets when you filled out the BIA.
Can any business get B Corp certification?
No. Only for-profit businesses that have been operating for over 1 year can apply.
Although any businesses, non-profit or charity can use the B Corp framework for free. In fact, over 50,000 businesses worldwide do.
It’s important to note that the process can be challenging.
Completing the assessment and verification process is not an easy task (nothing worthwhile ever is) but the concept is simple; B Corp is more than a tally of your business' beliefs and ambitions; it is a measure of your actions and legal commitments.
As B Leaders we work with businesses every day to guide them through the B Corp process, and there’s always a moment when something shifts, and we see change happen.