", https://en.wikipedia.org/w/index.php?title=B_Corporation_(certification)&oldid=994749012, Short description is different from Wikidata, Articles containing potentially dated statements from April 2020, All articles containing potentially dated statements, Creative Commons Attribution-ShareAlike License. It makes you be even better. [24], In June 2019, there were over 2,750 certified B Corporations across 150 industries in 64 countries, including Canada (78 companies), Australia, South Africa, and Afghanistan. Outwardly, the status sends a clear message to funders, employees and suppliers about your business. This is a single focus goal, without reference to any other stakeholders involved with, or impacted by, that business. Certified B Corporations are social enterprises verified by B Lab, a nonprofit organization. See Boatright (2006) and Johnstone and Lionais (2004). B Lab certifies companies based on how they create value for non-shareholding stakeholders, such as their employees, the local community, and the environment. Certified B Corporations represent a new (conscious!) Certifying as a B Corporation goes beyond a product or service certification. Both meet higher standards of accountability and transparency. ). Certified B Corporations are companies that demonstrate high standards of social and environmental performance, according to certifying agency B … way to do business—one that balances purpose and profit. [3], As a matter of law, in Massachusetts or States that recognize B Corporation Certification, it doesn't bring any legal significance to its shareholders, stakeholders or to its employees. What multiple is the highest compensated individual paid, inclusive of bonus, as compared to the lowest paid full-time worker. They are legally required to consider the impact of their decisions on their workers, customers, suppliers, community, and the environment. Allowing for the company's values to exist under new management, investors, or ownership. Benefit corporations and Certified B Corporations are often confused.The B Corp Certification is a third-party certification administered by the non-profit B Lab, based in part on a company's verified performance on the B Impact Assessment. Boston Business Journal: “Bringing their B game: Some Mass. 4. Opinions expressed by Forbes Contributors are their own. [27], social and environmental certification of for-profit companies, Verification and transparency requirements. [16] Depending on a company's industry, geographic location, and number of employees, the online assessment adjusts the weightings of the question categories to increase its relevancy. You may opt-out by. This is your complete guide to the performance, legal, and transparency requirements to become a Certified B Corp. Once companies meet all below requirements, they pay an annual Certification fee. To be granted and to maintain certification, companies must receive a minimum score from an assessment of "social and environmental performance", integrate B Corp commitments to stakeholders into company governing documents, and pay an annual fee based on annual sales. If you have been trading for less than 12 months, you can obtain pending status without scoring 80 but you must hit the 80 mark when you reach 12 months’ of trading and are fully assessed. It also brings commercial benefits. Certified B Corporations® meet the highest standards of verified overall social and environmental performance, transparency, and accountability, and aspire to use the power of business to solve social and environmental problems. Academic contributions of loan forgiveness. They want, rightly so, to see action from the companies that profit from their spending. They are just 5 of the more well known 3,200 B-Corps, which sit across 150 industries in 64 countries. In order to become a B Corp, your organization has to get score of at … The B Corp certification process measures a company's performance in five impact areas, including governance, workers, customers, community and … What is a Certified B Corp? An issue in deciding to be a Certified B Corporation would be the administrative and legal costs a corporation will face in changing their business model in accordance to B Labs regulations. Completing the Impact Assessment is really useful for prompting the thinking up front about critical foundations for your business. There is a fellowship of B Corporations that shares resources. Companies that earn a minimum score of 80 out of 200 points undergo an assessment review process, essentially a conference call verifying the claims made in their assessment. B Corporation (also B Lab or B Corp) certification of "social and environmental performance" is a private certification of for-profit companies, distinct from the legal designation as a Benefit corporation. Some questions lifted from the Impact Assessment: You need to score 80+ out of 300 to qualify for the full B Corp Certification. At United By Blue, we believe business not only has the ability to be a part of environmental solutions, but also a moral responsibility to address them. B Corp is the term used for any for-profit entity that is certified by the nonprofit B Lab as voluntarily meeting higher standards of transparency, accountability, and performance. Following a rigorous certification process, Tillamook County Creamery Association (Tillamook) is now recognized as a Certified B Corporation (B Corp). [1] Companies must re-certify every three years to retain B Corporation status. If your company has not been trading for 12 months, the full B-Corp certification is not an option. B Lab also assists Sistema B in incorporating a benefit corporation distinction into local legal systems. It also represents a new way to help conscious consumers make purchasing decisions that matter to them. Which companies can apply for B-Corp certification? There is instead a pending B-Corp status available to startups and new businesses. There is a one-off £500 fee when you apply. [25] Since 2012, Sistema B has been the adaptation of the B Corps movement in Latin America, including in Argentina, Brazil, Chile, Uruguay and Colombia. Benefit Corporation is a legal form. What secondary parental leave policies are available to your workers, either through your company or a government program? B-Corp is a certification that shows the world what your company stands for. [2] The most active community outside of the United States is Sistema B. From its start, Amy’s Kitchen has been committed to cooking vegetarian meals with meticulously sourced organic ingredients and taking care of people. The B Corporation or “B Corp” is a certification issued by the organization B Lab Company to sustainable for-profit businesses that meet rigorous standards of social and environmental performance, accountability, and transparency. I write about circular economy businesses and the journey to b-corp, EY & Citi On The Importance Of Resilience And Innovation, How Digital Workflows Helped Save Basketball During The Pandemic, Impact 50: Investors Seeking Profit — And Pushing For Change, Michigan Economic Development Corporation With Forbes Insights, How The Global Pandemic Became An Inflection Point For Drones, The Voices Of Entrepreneurs, From Arkansas To Appalachia To Montana, Learn Public Health Skills To Keep Your Business Healthy, Entrepreneurial Lessons From The Twitter Saga, How Startups Are Changing And Adapting To The Pandemic Era, Microsoft Races Ahead On RPA (Robotic Process Automation), Snowflake: Valuable Lessons For Entrepreneurs, Sumo Logic IPO: A Trusted Partner For Digital Transformation. There is a widely held view, growing in momentum, that businesses need to play their role in driving societal and environmental change—rather than leaving that to government and charities. The requirements of B-Corp cement this viewpoint into a measurable certification. Ericsson shapes the future of mobile broadband Internet communications through its technology leadership, creating the most powerful communication companies. B Corp Certification is the only certification that measures a company's entire social and environmental performance. Legislation for the passage of this corporate legal status has been passed in 35 states, including, The establishment of clear wording to "consider stakeholder interests" in company. [17] B Lab has an established standards advisory council that can independently make decisions with or without the support of B Lab. There are a few terms that are similar and definitely related which can sometimes cause confusion: Certified B Corporation, benefit corporations, businesses with corporate social responsibility (CSR) initiatives, and mission-driven companies to name a few. Becoming B Corp certified is no easy task. It is the only certification that measures a company’s entire social and environmental performance. There is a 30-day public consultation period before releasing a new version of the B Corporation assessment. Companies are required to provide supporting documentation before they are certified. There are over 1,800 Certified B Corps in over 50 countries across 130 different industries. To give this context and show how it differs to the usual company set up —the directors of … A Certified B Corp is a for-profit corporation that has been certified by B Lab, which is a non-profit company that measures a company’s social and environmental performance against the standards in the online B Impact Assessment. Amy's Kitchen Earns B-Corp Certification Organic food maker Amy’s Kitchen has received a B Corp Certification due to its long-time commitment of "doing well by doing good," says the food maker. B Corp certification is conferred by B Lab, a global nonprofit organization with offices in the United States, Europe, Canada, Australia and New Zealand, and a partnership in Latin America with Sistema B. Think of it as the Good Housekeeping Seal of Approval for businesses voluntarily trying to do well by doing good. All Rights Reserved, This is a BETA experience. [4] To add on, many C corporations usually adapt the B Corporation Certificate to gain goodwill.[5]. To maintain credibility, the B Corporation certification standard operates under principles that are independent, comprehensive, comparable, dynamic, and transparent. A certified B-Corp is a company that balances profit and purpose. Benefit corporation is a legal status conferred by state law in the US; B Lab certification is issued by a non-profit organization and has no legislative framework. For instance, companies with more employees will have a heavier weighting in the workers category, and companies in manufacturing will have a heavier weighting in the environment category. To learn more, watch the B Corporation … B Lab certification is a third-party standard requiring companies to meet social sustainability and environmental performance standards, meet accountability standards, and be transparent to the public according to the score they receive on the assessment. The questions make you think about things that you may not have previously articulated. The high bar for treatment of staff is likely to attract top talent. Patagonia, Ben & Jerry’s, Ella’s Kitchen, Propercorn and Allbirds are all B-Corps. Before we dive into how to define a B Corp, let’s make some important distinctions. Benefit corporations and Certified B Corporations are both leaders of a global movement to use business as a force for good. Around the world, organizations, including the University of St. Augustine for Health Sciences, are undergoing rigorous reviews by the nonprofit group B Lab in their quest to become a Certified B Corp organization. Tillamook qualified for the prestigious B Corp distinction by demonstrating the highest standards of social and environmental performance, transparency and accountability. The journey to B-Corp starts by registering and going through a very long and thought provoking set of questions with multiple choice answers—you need to “go deep” with your business. Bombas earned B corp status for our commitment to helping those in need, for our One Pair Purchased = One Pair Donated business model, for increasing social consciousness, and for our focus on solving a problem in our community. On completing the assessment, companies are required to meet certain transparency requirements and background checks to become Certified B Corp(s). Certified B Corporations® are leaders of the global movement of People Using Business as a Force for Good™. The application includes an Impact Assessment. Fees start at $500 for businesses with under $200,000 in revenue, up to $50,000 for businesses with more than $1 billion in revenue. It is also likely to draw in more customers—who we know are increasingly buying from companies that they believe behave ethically. © 2020 Forbes Media LLC. The company needs to adhere their corporate legal structure to B-Lab regulation in order to qualify for the certification process. [18] The council recommends improvements to the B Corp assessment on a biennial basis. As a startup or new business, why go for pending B-Corp status? Many B Corporations may qualify for 501c3 status because their mission is to create or maintain a good cause within the local community. In the United States, a benefit corporation (or in several jurisdictions including Delaware, a public-benefit corporation or PBC) is a type of for-profit corporate entity, authorized by 35 U.S. states and the District of Columbia that includes positive impact on society, workers, the community and the environment in addition to profit as its legally defined goals, in that the definition of "best interest of the corporation" is … It analyses matters including your policies, operations, treatment of staff and environmental impact and scores your responses out of a total of 300. [16], Currently the B Corp assessment is its fifth version, with the sixth version scheduled to be released in January 2018.[19]. They share much in common and are complementary, but have a few important differences. It is not easy to get and this is what makes it so meaningful. To obtain a B Corporation certification, a company first completes an online assessment. It drives you to form opinions and put your stake in the ground about how things are going to be. A certified B Corp is a for-profit business that has gone through a rigorous review process to ensure that it’s socially and environmentally responsible. Some B Corps may also be allowed to charge annual fees, collect fundraising, and other non-profit activities that are inviting to investors. It is about the way the business is run, how the team is treated, how it uses energy and treats the environment. The B symbol you see tied to companies like Patagonia, King Arthur Flour, and Ben & Jerry’s is reserved only for certified B Corps. These organizations are leaders who are committed to using business as a force for good. Few would dispute that the requirements of the certification lead to a better way for businesses to be. B Corp Certification is the only certification that measures a company's entire social and environmental performance. To be certified, companies must complete an Impact Assessment, which evaluates how their operations and business model impact their workers, community, environment, and customers. Certification Requirements The three pillars of B Corp Certification make it unique, material, and credible. To become a Certified B Corporation, a company have been in operation for one year (though there are steps a startup can take to prepare for B corp certification) and must earn at least 80 points out of 200 on the Impact Assessment. [16] As of May 2014, 28 of 30 members were listed by their business affiliation. B Corp certification is conferred by B Lab, a global nonprofitorganization with offices in the United States, Europe, Canada, Australia, New Zealand and a partnership in Latin America with Sistema B. Certification also requires companies to integrate their stakeholder commitments into the company governing documents. 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