A B Corporation (or B Corp) is a certification received from B Lab that is given to for-profit companies that meet high standards of social and environmental performance, accountability, and transparency. These are businesses (of any entity) that balance purpose with profit. From products to sourcing, and through their entire supply chain, they carry responsibility throughout their business model.
Here’s what it means to be a B Corp:
High Standards of Social and Environmental Performance
B Corps are assessed on their impact on various stakeholders, including workers, customers, suppliers, community, and the environment. Companies must score a minimum of 80 out of 200 points on the B Impact Assessment, which evaluates:
- Governance: Ethical practices, transparency, and accountability.
- Workers: Employee benefits, work environment, and job creation.
- Community: Engagement in local communities, diversity, and supplier relations.
- Environment: Sustainable practices, resource usage, and environmental stewardship.
- Customers: Products/services that support customer well-being.
Legal Accountability
B Corps are required to consider the interests of all stakeholders, not just shareholders, in their legal structure. This legal requirement helps protect the company’s mission in the long term, even through changes in ownership or leadership.
Transparency
B Corps must publish a public report of their social and environmental performance, assessed against a third-party standard. This transparency is intended to hold companies accountable and provide consumers with trustworthy information about the company’s practices.
The work does not stop after certification. To remain certified requires continuous improvement and commitment to high standards as the recertification process is required every three years. However, the benefits are worth the effort. Being a certified B Corp enhances reputation and customer loyalty while standing out in the marketplace as a leader in social and environmental responsibility. B Corp status also appeals to employees who want to work for a purpose-driven company increasing the company’s talent acquisition and retention. Additionally, certification creates a community of like-minded businesses, expanding one's network and providing opportunities for collaboration.
Learn more about becoming B Corp certified through B Lab.
