Discover exactly what it takes and if this is the right choice for your company.

By Elisa Fernández-Arias

With nearly 1,700 certified B Corp business headquarters, the U.S. is leading the global charge in companies committed to being a “force of good” that benefits all people, communities, and the planet. And the list continues to grow as brands realize that this certification can lead to increased engagement and, yes, even loyalty. But what is a B Corp? And how can your company gain this certification?

WHAT IS A CERTIFIED B CORP?

The definition of B Corp  — or “Certified B Corporation” — is a company that has voluntarily chosen to meet the highest standards for environmental and social performance by improving its impact on the key areas of governance, community, workers, customers and environment. 

To become a B Corp, a company has to meet the standards set by B Lab, a Berwyn, Pennsylvania-based nonprofit organization that also provides the global certification. B Lab will certify companies based on how they create value for non-shareholding stakeholders, like the environment, the local community and their employees. 

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BECOMING A B CORP

To be on the path toward B Corp certification, a company has to score a minimum of 80 (out of 200) in five key areas:

• Governance: Policies relating to ethics, transparency, accountability or a company’s  mission
• Workers: Strategies for improving employees’ social, professional, physical and financial well-being 
• Community: How to improve the social well-being and economy of the community
• Environment: Strategies for expanding a company’s overall environmental stewardship 
• Customers: Ways to increase the experience of customers and consumers

Additionally, the company must demonstrate that these claims are true by providing supporting documentation and  amending its bylaws to reflect the commitment to positive environmental and social change. Once a company has become B Corp certified, it has to maintain its certification by updating and verifying its impact assessment every three years. 

SHOULD MY COMPANY BECOME A B CORP

At this point, you may be asking yourself whether your company should become B Corp certified. The answer depends on your business goals, your target audience and, believe it or not, your stamina. 

The Pros: Becoming a certified B Corp shows the world that you are committed to the social good and are interested in improving the community and the environment. Some say the rigorous process also helps you better understand your business, the risks and opportunities. Also, there are those who believe companies of the future will benefit more from a B Corp certification due to societal shifts, and could lose out on business, employees and investment without it.  

Still, many say it is more about demonstrating to customers that you care about social responsibility and attracting like-minded employees than any bottom line benefit. Cultivating Capital indicates that the number one reason companies undertake the B Corp certification process is because it aligns with their values and they want to run a better business.

The Cons:  The certification process is definitely not easy. According to Cultivating Capital, fewer than 50 percent of companies that submit an assessment are ready to get certified. And B Lab states that only one in three companies who go through the process actually get approved.

The process is expensive and time-consuming, taking six to eight months for small to medium-sized companies to fill out an initial application, get supporting documents and do interviews. And if approved for certification, the company has to recertify every three years.

As a result, some companies decide not to recertify due to the complexity and lack of ROI, while others do it but acknowledge that it’s more about showing commitment to the cause than increasing the bottom line. 

Interested? Take the first step toward becoming a certified B Corp by completing this B Impact  assessment to measure your company’s positive impact performance for the environment, communities, customers, suppliers, employees and shareholders. Not ready to make the move, but want more details about the standards, tools and process, visit B Lab for more information.

Sources:

A Complete Guide to Starting a B Corp, U.S. Chamber of Commerce

What are B Corps and what does B Corp Certification mean?, Empower Agency

What is a B Corporation? Everything You Need to Know, Cultivating Capital

Why Companies Are Becoming B Corporations, Harvard Business Review