Certification Requirements The three pillars of B Corp Certification make it unique, material, and credible. The B Corp Enviro-Stewards, based in Canada, takes pride in energy efficiency, water conservation, and sustainable development. 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. There is a 30-day public consultation period before releasing a new version of the B Corporation assessment. This is a community of leaders, driving a global movement of people using business as a force for good. What secondary parental leave policies are available to your workers, either through your company or a government program? 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. No prioritization of one stakeholder over another. B-Corp is a certification that shows the world what your company stands for. It also brings commercial benefits. The assessment covers the company’s entire operation and measures the positive impact of the company in areas of governance, workers, community, the environment, as well as the product or service the company provides. [20] Beyond the corporate model, other for-profit business entities make an amendment of the company by-laws or governing documents. [17] B Lab has an established standards advisory council that can independently make decisions with or without the support of B Lab. [16], Currently the B Corp assessment is its fifth version, with the sixth version scheduled to be released in January 2018.[19]. 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. © 2020 Forbes Media LLC. [1] Companies must re-certify every three years to retain B Corporation status. "Certification | Certified B Corporation", "Benefit Corporations Have Arrived in Massachusetts", "Benefit Corporations & Certified B Corps | Benefit Corporation", "Loan Assistance Program – Detailed Summary", "Making a Difference (and a Profit): Advantages and Disadvantages of Forming or Converting into a "B" Entity| Lexology", "Delaware Just Made It A Whole Lot Easier For Socially Responsible Companies To Exist", "Corporate Social Responsibility Comes In Many Flavors, Some Not So Tasty", "OLR Backgrounder: Social Enterprise and the Benefit Corporation", "Certification Requirements | Certified B Corporation", "In Just a Few Months, Sistema B (AKA: B Corp) Finds Fertile Ground for Social Enterprises in Latin America", "B Lab and Sistema B Partner to take B Corps Global", "What's Wrong—and What's Right—with Stakeholder Management", "Benefit Corporations—A Sustainable Form of Organization? Boston Business Journal: “Bringing their B game: Some Mass. 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. To give this context and show how it differs to the usual company set up —the directors of … What is a Certified B Corp? Enviro-Stewards has gotten an award as a B … If your company has not been trading for 12 months, the full B-Corp certification is not an option. 4. Certified B Corporations are social enterprises verified by B Lab, a nonprofit organization. A certified B-Corp is a company that balances profit and purpose. 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 … 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. The B symbol you see tied to companies like Patagonia, King Arthur Flour, and Ben & Jerry’s is reserved only for certified B Corps. ", 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. B Lab also assists Sistema B in incorporating a benefit corporation distinction into local legal systems. It is sector agnostic—you do not need to be producing a product or service that in its own right is classed as sustainable. Certification also requires companies to integrate their stakeholder commitments into the company governing documents. There is a fellowship of B Corporations that shares resources. 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. 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. Few would dispute that the requirements of the certification lead to a better way for businesses to be. I think we will see a continued increase in the number of certified B-Corp businesses in the U.K. and as we do, the certification will start to mean more to the average consumer and household, actively influencing their spending behaviour. B Corp Certification is the only certification that measures a company's entire social and environmental performance. Completing the Impact Assessment is really useful for prompting the thinking up front about critical foundations for your business. [27], social and environmental certification of for-profit companies, Verification and transparency requirements. The B-Corp way adjusts this position so that employees, suppliers, the environment and the wider community also get a look in alongside shareholders. It drives you to form opinions and put your stake in the ground about how things are going to be. 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. To learn more, watch the B Corporation … The B Corp certification process measures a company's performance in five impact areas, including governance, workers, customers, community and the environment. Some questions lifted from the Impact Assessment: You need to score 80+ out of 300 to qualify for the full B Corp Certification. 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. The questions make you think about things that you may not have previously articulated. As a startup or new business, why go for pending B-Corp status? Doing this early and baking these important values into your company’s DNA is much easier than trying to implement this top down later on. 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. The B Corp certification process measures a company's performance in five impact areas, including governance, workers, customers, community and … Tillamook qualified for the prestigious B Corp distinction by demonstrating the highest standards of social and environmental performance, transparency and accountability. There are over 1,800 Certified B Corps in over 50 countries across 130 different industries. ). [26] This non-profit adapts proprietary certifications and evaluation metrics and modifies both to the context of each country. [16] As of May 2014, 28 of 30 members were listed by their business affiliation. 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. There is a one-off £500 fee when you apply. 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. 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. On completing the assessment, companies are required to meet certain transparency requirements and background checks to become Certified B Corp(s). Certified B corporations help make positive changes by working to reduce inequality, incorporating sustainable practices to help the environment, creating strong communities, and creating high-quality job opportunities that give individuals a sense of purpose. The leaders of B-Corps believe that sustainable business is better business and that they can use their business as a force for good. From its start, Amy’s Kitchen has been committed to cooking vegetarian meals with meticulously sourced organic ingredients and taking care of people. This page was last edited on 17 December 2020, at 10:01. companies aren’t focused on profit alone” In February 2016, Boloco became a certified B-Corp as well as a Delaware Benefit Corporation, joining an inspiring group of companies (Patagonia, King Arthur Flour, Warby Parker, etc. In order to become a B Corp, your organization has to get score of at … 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. Some states known as "constituency" states will allow for this change in the articles of incorporation, other states, known as "non-constituency states", will not; and many states now have the option of adopting the benefit corporation legal structure, which also meets B Lab's requirements for B Corp certification. [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. 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. [18] The council recommends improvements to the B Corp assessment on a biennial basis. 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. Think of it as the Good Housekeeping Seal of Approval for businesses voluntarily trying to do well by doing good. These organizations are leaders who are committed to using business as a force for good. Certified B Corporations are a new kind of business that balances purpose and profit. [4], B Corp Certification will bring no legal liabilities to a C Corporation or any for profit business structures apart from its business model structure which should adhere to the B Labs. 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. 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. You may opt-out by. Once a firm crosses a certain performance threshold on these dimensions, it makes amendments to its corporate charter to incorporate the interests of all stakeholders into … 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. Certifying as a B Corporation goes beyond a product or service certification. These include: However, B Lab certification allows the company bylaws to remain secret. B Corp is a certification. See Boatright (2006) and Johnstone and Lionais (2004). Some B Corps may also be allowed to charge annual fees, collect fundraising, and other non-profit activities that are inviting to investors. Benefit corporations and Certified B Corporations are often confused. Opinions expressed by Forbes Contributors are their own. However, the certification brings a multitude of branding tools to the corporation. Which companies can apply for B-Corp certification? Companies are required to provide supporting documentation before they are certified. Yes, that’s right, you can get certified by earning less than 50% of the available points on the assessment. Benefit Corporation is a legal form. It also represents a new way to help conscious consumers make purchasing decisions that matter to them. Allowing for the company's values to exist under new management, investors, or ownership. [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. Academic contributions of loan forgiveness. All Rights Reserved, This is a BETA experience. 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. In order to obtain and maintain a B Corporation certification, B Lab charges annual administrative and legal fee depending on the revenue generated by the respective companies. A founder many times over, most recently 'now, sit down', which designs and sells circular furniture & "In the Loop" a community for circular economy businesses. The high bar for treatment of staff is likely to attract top talent. B Lab certification applies to the whole company across all product lines and issue areas. It makes you be even better. B Lab certifies companies based on how they create value for non-shareholding stakeholders, such as their employees, the local community, and the environment. 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. They want, rightly so, to see action from the companies that profit from their spending. Outwardly, the status sends a clear message to funders, employees and suppliers about your business. They are legally required to consider the impact of their decisions on their workers, customers, suppliers, community, and the environment. Many B Corporations may qualify for 501c3 status because their mission is to create or maintain a good cause within the local community. 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