B Corp Certification is a designation that a business is meeting high standards of verified performance, accountability, and transparency on factors from employee benefits and charitable giving to supply chain practices and input materials. In order to achieve certification, a company must:
Demonstrate high social and environmental performance by achieving a B Impact Assessment score of 80 or above and passing our risk review. Multinational corporations must also meet baseline requirement standards.
Make a legal commitment by changing their corporate governance structure to be accountable to all stakeholders, not just shareholders, and achieve benefit corporation status if available in their jurisdiction.
Exhibit transparency by allowing information about their performance measured against B Lab’s standards to be publicly available on their B Corp profile on B Lab’s website.
As leaders in the movement for economic systems change, B Corps reap remarkable benefits. They build trust with consumers, communities, and suppliers; attract and retain employees; and draw mission-aligned investors. As they are required to undergo the verification process every three years in order to recertify, B Corps are by definition also focused on continuous improvement, leading to their long-term resiliency.
B Corp Certification is holistic, not exclusively focused on a single social or environmental issue. And the process to achieve and maintain certification is rigorous and requires engaging teams and departments across your company. Taking company size and profile into account, verification involves documentation of your company’s business model and information about your operations, structure, and various work processes, as well as review of potential public complaints and possible site visits. Recertification confirms these standards continue to be met on an ongoing basis.
Did you know that each year, B Lab releases Best for the World lists of the top-performing Certified B Corps from around the globe? Check out this year's honorees.
RISK STANDARDS
With input from experts and stakeholders, B Lab’s Standards Advisory Council continually evolves our risk standards to effectively evaluate the potential negative impacts of different industries, policies, and practices. At the beginning of the B Corp Certification process, companies must undergo an assessment of risk factors based on their industry and other practices.
PATHWAY TO CERTIFICATION
Your company’s pathway to becoming a Certified B Corporation will vary depending on a few factors. Check out our guides to learn more about the different routes to certification. Our team may recommend a different pathway once you’ve begun. Note that revenue and company size are typical criteria to guide companies to their Approach to certification. In some cases, companies might undergo a different approach based on factors, such as sector, industry, scoring, and ownership structure.
If you work with a start-up or smaller company, learn more about preparing for the process of full certification by becoming a Pending B Corporation.
If your company generates less than $5M USD in annual revenue and employs less than 50 full time employees, download the Small Enterprise Guide to learn more about how B Lab certifies small businesses.
If your company generates more than $5M USD in annual revenue or employs between 50 to 250 full time employees, download the Small-Medium Enterprise Guide.
If your company generates more than $100M USD in annual revenue or employs more than 250 full time employees, download the Medium Enterprise Guide.
If your company generates more than $100M USD in annual revenue with 10 or more subsidiaries operating in multiple countries or generates more than $1B in annual revenue, download our Large Enterprise Guide.
Companies with more than $5B USD in annual revenue will also participate in our B Movement Builders program. All subsidiaries must also follow the Large Enterprise approach, regardless of size.
Related Entities: Are you a subsidiary, or does your company have a Subsidiary, Franchise, Division, or other affiliated entities? If so, click here in addition to your corresponding Certification Guide.
While the certification process varies depending on your company’s size and complexity, all companies must do the following to become a B Corp. B Lab Global and your regional B Lab or Sistema B organization are here to help. And for more details before you get started, be sure to check out our Certification Guides above:
Register for the free and confidential B Impact Assessment.
Use the Legal Requirement Tool to determine how your company can integrate stakeholder consideration into your governance structure, which will depend on your location and corporate structure.
Complete the Risk Review and baseline requirements for multinational corporations if applicable.
Gather your supporting documentation and data, and get ready to record your answers.
Take the B Impact Assessment online. You can save and return to your assessment at any time.
Establish a company profile—you will be prompted once you fill out the majority of the Assessment—and start the Disclosure Questionnaire. At this point you will learn your baseline score; if it is under the 80-point benchmark, reevaluate and prioritize improvement areas.
If you’re over the 80-point benchmark, submit your B Impact Assessment for review.
You’ll next wait in the Evaluation Queue, as an analyst from our team reviews your company’s eligibility for B Corp Certification.
(Video) B Lab and the Purpose of the Corporation | Michelle Bradley & Charlie Fraioli | GCNYCOnce eligibility is determined, you enter the Evaluation phase. An analyst from B Lab Global will look over your company structure, any controversial industries, as well as your answers to the entire Assessment.
You’ll then enter the Verification Queue, where you’ll be asked to provide information about your employees and any suppliers.
During Verification, you’ll have your review call with an analyst, go through your verification report, and provide all documentation backing up your answers to the Assessment.
If you meet the verified 80-point threshold, you’ll enter the Post-Verification stage and sign the B Corp Agreement.
You’ve now reached Certification! In order to meet the transparency requirement for B Corp Certification, you’ll need to publish your public profile in the B Corp Directory, including your company’s score and impact report.
Now it’s time to Launch! Celebrate and share your B Corp status internally with employees, board members, and shareholders, and externally with suppliers, vendors, and the public.
The final step in your B Corp journey will last the longest. You’ll prepare for recertification every three years, and use the B Impact Assessment and the certification process as a tool for continuous improvement.
Acceptance into and continued participation in the B Corp community is at the sole discretion of the Standards Advisory Council and B Lab's Board of Directors.
RECERTIFYING AS A B CORP
To maintain certification, Certified B Corps must update their impact assessment and verify their updated score every three years, or after a Change of Control or Initial Public Offering. Are you recertifying? Click here to login to the B Impact Assessment.
B Lab will not conduct a bringdown certification review outside of the standard recertification schedule in the case of an initial public offering, or any other public offering, private placement of securities or other transaction.
B CORP DECLARATION OF INTERDEPENDENCE
We envision a global economy that uses business as a force for good. This economy is comprised of a new type of corporation – the B Corporation – which is purpose-driven and creates benefit for all stakeholders, not just shareholders.
As Certified B Corporations and leaders of this emerging economy, we believe:
That we must be the change we seek in the world.
That all business ought to be conducted as if people and place mattered.
That, through their products, practices, and profits, businesses should aspire to do no harm and benefit all.
To do so requires that we act with the understanding that we are each dependent upon another and thus responsible for each other and future generations.
(Video) B Invested: The Value of B Corp Certification
FREQUENTLY ASKED QUESTIONS
View FAQs here, or see our Knowledge Base for more in-depth information.
FAQs
What does it mean if a company is certified B Corp? ›
B Corp Certification is a designation that a business is meeting high standards of verified performance, accountability, and transparency on factors from employee benefits and charitable giving to supply chain practices and input materials.
What is the B Corp Impact Assessment? ›The B Impact Assessment examines a company's impact on their workers, community, environment, and customers. The B Impact Assessment also asks questions about a company's governance structure and accountability.
Which of the following are elements of B Corporation certification? ›The B Corp Definition
Certified B Corporations are businesses that meet the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose.
What does it mean to have a B Corp certification? B Corp certification is a third-party certification standard issued by the non-profit B Lab. It indicates that an organisation is committed to reaching the highest level of social and environmental responsibility.
Is B Corp certification good? ›B Corps (short for B Corporations) have been described as 'the ethical future of business'. They're companies certified to the highest standards of social and environmental transparency and performance, and there are already over 4600 around the world.
Do consumers care about B Corp certification? ›Even among consumers who were unfamiliar with the B Corp brand, a majority (66%) reported being interested in purchasing from a B Corp after learning more about the certification. The top values associated with Certified B Corps were support for employees, fair business practices, and providing a living wage.
Why is a business certificate important? ›Certification demonstrates your commitment to superior professionalism, upholding industry standards, and continued learning. These merits can help boost your professional credibility and prestige within your own network, with your current clients, and when pursuing new business opportunities or bidding on projects.
How do I fill out an impact assessment? ›- Select the Project(s) to be Assessed.
- Conduct an Evaluability Assessment.
- Prepare a Research Plan.
- Contract and Staff the Impact Assessment.
- Carry out the Field Research and Analyze its Results.
- Disseminate the Impact Assessment Findings.
The B Corp certification is awarded based on a business's ability to evidence that they meet a minimum standard against the following 5 impact areas: workers, customers, suppliers, community, and the environment.
What are the 5 impact areas in the B Impact Assessment? ›The BIA is divided into 5 Impact Areas – Governance, Workers, Environment, Community and Customers – which cover different policies and practices.
What is B Corp example? ›
B Corps are businesses graded on their efforts to create an inclusive, sustainable economy. These companies treat "good business" as an idea that includes both profit and purpose. Below, we rounded up the B Corps we love shopping at most, including Patagonia, Allbirds, and Prose.
What are some examples of B Corps? ›There are only around 3,500 Certified B Corporations, including Lemonade, Ben & Jerry's, Warby Parker, and Patagonia. The process grades brands on a points system that measures five key areas: Governance, Workers, Environment, Customers, and Community.
What are the 4 attributes of a corporation? ›Tip. The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management.
What are the benefits of B Impact Assessment? ›The purpose of the B Impact Assessment is to allow businesses to measure and manage the social and environmental performance of their whole business by providing an easy to use, insightful, and standardized framework for measuring the business's impact on its stakeholders.
What are B Corp requirements? ›A company must be a for-profit business and have been in operation for at least 12 months to be eligible for B Corp Certification.
How hard is it to get B Corp? ›To become a fully certified B corporation, a business must score at least 80 out of a possible 200 points in an online survey of roughly 200 questions, as well as pass a phone interview with B Lab.
What is a good B Corp score? ›Using the B Impact Assessment, B Lab evaluates how a company's operations and business model impact its workers, community, environment, and customers. To achieve the B Corp Certification, a company must achieve a score of at least 80 points on the assessment.
Is Walmart B Corp certified? ›“But being certified for our transparency, social responsibility, and accountability has inspired us even more. Our whole team is thrilled to be a B Corp company and have an impact on the social and environmental conscientiousness of our business community.”
What is the average B Corp score? ›Overall B Impact Score. Based on the B Impact assessment, Advanced Metrics earned an overall score of 109.8. The median score for ordinary businesses who complete the assessment is currently 50.9.
What are the pros and cons of certificate? ›- Advantage: recognition and credit.
- Advantage: structured learning.
- Advantage: integrated and holistic approach.
- Disadvantage: arrogance.
- Disadvantage: biases.
- Common problem: shortcuts.
How does being B Corp change what the company does? ›
Becoming a B corp allows companies to hold on to their social mission, while allowing them to scale the business. Since they are for-profit, the company can grow and raise money though still be held to a socially responsible standard.
How becoming a certified B Corp can enhance your company's corporate accountability? ›The B Lab Global website states that a B Corp Certification shows that a business is meeting high standards of verified performance, accountability, and transparency on various factors such as employee benefits, charitable giving, and supply chain practices.
What is the value of a company becoming a certified B Corporation? ›By becoming a B Corporation, entrepreneurs can protect their mission by elevating their company's core social and environmental values to the status of law, meaning that new investors and a new board would be obligated to consider both shareholders and stakeholders when making decisions in the future.
Why more brands are seeking out B Corp certifications? ›That's why certifications like B Corp are so valuable. They give customers a third-party verified standard to hold to the brands they shop from. As more customers seek out brands that align with their values and brands aim to avoid greenwashing, B Corp certification is becoming a valuable tool for brands.
Is B Corp meaningful? ›B-Corp is a certification that shows the world what your company stands for. It is not easy to get and this is what makes it so meaningful. A certified B-Corp is a company that balances profit and purpose.
Why is IT important to have certification? ›A high-value certification ensures that you maintain a high level of knowledge and skill in your profession. Certifications also help show that you are committed to mastering your skills and knowledge in your field.
What is the purpose of certification? ›Certification helps to protect consumers by ensuring the competence of an individual in a specialized area of practice.
Why is getting a certificate important? ›Validates your skills and capabilities to clients, peers, and/or employers. Puts you in a position to raise your fees or demand what you are worth. Is an investment in your career, whether you are an employee or self-employed.
How do I write an environmental impact assessment report? ›- Proponent details and Index.
- Executive Summary of the EIA.
- Project description and alternatives.
- Legal considerations and environmental regulations applicable.
- Description of the physical environment.
- Description of the biological environment.
- Description of the socio-economic environment.
- A clear description of the issue or problem that your research addresses. ...
- A statement of the action you are taking or intend to take to resolve the problem. ...
- An explanation of the impact. ...
- A list of the people involved in the research, other than yourself.
What are examples of business impact? ›
Consider the Impact
Delayed sales or income. Increased expenses (e.g., overtime labor, outsourcing, expediting costs, etc.) Regulatory fines. Contractual penalties or loss of contractual bonuses.
The B Corp community works toward reduced inequality, lower levels of poverty, a healthier environment, stronger communities, and the creation of more high quality jobs with dignity and purpose.
What is the most common impact of business in the community? ›They create job opportunities
Clearly, one of the most important ways small businesses benefit the community is by creating job growth and providing locals with job opportunities – an overall positive in terms of a healthy economy and a happy community.
Examples of social impact assessments include looking at how people live in a society (kinship or nuclear setting), culture, community, medical knowledge, and political systems. These examples showcase the emphasis on the environment and its effect on social impact.
What are the examples of environmental impact assessment? ›The environmental impact assessment (EIA) procedure aims at reducing or preventing the negative environmental impact of projects. Examples of projects include highways, landfill sites and power plants.
What does overall B impact score mean? ›The B Impact Assessment is scored to measure a company's social and environmental performance, both overall and within key impact areas. Scoring within the B Impact Assessment is designed to allow comparability and to identify and track opportunities for improvement over time.
What are the B Corp categories? ›Complete the B Impact Assessment by answering a series of questions about your company's practices and outputs across five categories: governance, workers, community, the environment, and customers.
What kind of companies are B Corp? ›B Corps are for profit companies that meet the highest standards of social and environmental performance, transparency, and accountability. B Corps use the power of business to do more than seek profit. They use their profits and growth to positively impact their stakeholders — and the planet.
What are 3 examples of corporations today? ›Apple Inc., Walmart Inc., and Microsoft Corporation are all examples of corporations.
What is B Corp best for the world environment? ›The Best For The World B Corps in Environment are taking bold action to preserve our most precious resources. With planet-friendly practices and environmental initiatives, these companies consider the impact of their everyday footprint, including energy usage, materials, facilities, supply chain, and more.
How many companies are B Corp certified? ›
There are currently over 6000 Certified B Corporations in more than 80 countries and over 150 industries. Head to our homepage to see the latest statistics about the B Corp Movement. Not what you're looking for? Visit our Knowledge Base for more information and resources about B Lab, our tools, programs, and more.
What are the 3 important components of a corporation's organizational structure? ›However, there are three components of corporate organizational structure that are common across most organizations: the board of directors, the management team, and the shareholders.
What are the 3 basic principles of good and effective corporate governance? ›The three pillars of corporate governance are: transparency, accountability, and security. All three are critical in successfully running a company and forming solid professional relationships among its stakeholders which include board directors, managers, employees, and most importantly, shareholders.
What are the 3 basic corporate structures? ›Your form of business determines which income tax return form you have to file. The most common forms of business are the sole proprietorship, partnership, corporation, and S corporation.
How is a B Corp different from a corporation? ›Certified B Corporations, or “B Corps,” are businesses certified by B Lab as meeting certain standards of social and environmental performance, accountability, and transparency.
What does B in B Corp stand for? ›The term “B Corp” is often used interchangeably to refer to both benefit corporations and Certified B Corporations, but these are actually distinct. A benefit corporation is a corporate legal entity whereas “B Corporation” is a certification, like Fair Trade or USDA Organic.
What is the largest B Corps in the world? ›| Rank | Company Name | Annual search volume |
|---|---|---|
| 1 | Moodle Pty Ltd | 53,550,000 |
| 2 | Coursera | 35,930,000 |
| 3 | TOMS | 14,920,000 |
| 4 | Redbox | 14,480,000 |
An integrated architecture, engineering, building, and renewable energy firm South Mountain Company, Inc., tops the global B Corp ranking with a score of 183/200.
What are the pros and cons of B Corporations? ›- You might have an edge when it comes to hiring talent. ...
- You'll earn extra publicity. ...
- Getting accepted is hard. ...
- There are no additional tax benefits from being a B Corp as opposed to more traditional corporations like an S Corp or an LLC. ...
- It's not available in every state.
B Corp Mission Statement:
Promote and join causes that inspire positive change in our employees, customers, communities, shareholders, and other stakeholders. Act with social responsibility to be a force for good for people and the planet.
What is the B Corp mission? ›
B Corps aspire to use the power of business to solve social and environmental problem. B Corp Certification is a mark of trust: a promise that a company is doing business in a way that meets rigorous standards of social and environmental performance, transparency and accountability.