You may have heard the term “B Corp” banded around in the media as of late. Plenty of these terms become part of the day-to-day vocabulary. But what actually is it? And, as a business, what does it mean for you?
We explore all things B Corp and how becoming certified will help combat the world’s sustainability issues.
What is B Corp?
B Corp is a certification run by B Corporation a global non-profit organisation that has a partnership with United Nations to help the private sector follow Sustainable Development Goals. The “B” stands for beneficial.
B Corp analyses commercial social and environmental performance. It certifies that companies meet the highest standard of performance.
The certification process is rigorous and comprehensive, which completes an assessment of all stakeholders, which is verified by B Lab, a non-profit organisation.
Once certified, B Corps are legally required to consider the impact their business has on the following:
- The planet
- Employees
- Partner businesses
- Customers
What are the requirements to certify as a B Corp?
The requirements to begin the B Corp certification are as follows:
- Be a for-profit corporation.
- Been in operation for 12 months or longer.
Companies with less than 100 million in annual revenue go through a standardised approach to B Corp certification.
If you’re a start-up operating and have not been operating for 12 months or over, you can apply for a Pending B Corp Certification.
The companies with over 100 million in annual revenue and operate across multiple countries go through a more involved and thorough process.
Here are two interesting pages to read on this:
What are the requirements to certify as a B Corp?
The requirements to begin the certification are as follows:
- Be a for-profit corporation.
- Been in operation for 12 months or longer.
Companies with less than 100 million in annual revenue go through a standardised approach to B Corp certification.
If you’re a start-up operating and have not been operating for 12 months or over, you can apply for a Pending B Corp Certification.
The companies with over 100 million in annual revenue and operate across multiple countries go through an more involved and thorough process.
Here are two interesting pages to read on this:
What is the process of becoming B Corp certified?
Before your company begins the process of certifying, you must follow these four steps:
- Firstly read and research the process and understand the business case for becoming a B Corp certification holder and the legal requirements.
- Once the first points are established, it’s time to build a team.
- Next, it’s time to complete the B Impact assessment.
- Finally, submit for verification – but only once you’ve reached at least 80 points on the B Impact Assessment.
*Note if you’re business makes $100 million in revenue and over, please reach out to [email protected] to discuss before submission.
What happens during the review process?
Once you’ve submitted your application, it’s now time to go through the review process. But what actually happens?
- Ensure you’re ready for the certification process. Make sure all of your company’s documentation is available and ready to share with our team.
- In the evaluation stage, they will provide an evaluation analyst who will get involved with your corporation. They will analyse and confirm your company’s business operations and impact business model points.
- It’s verification time. A verification Analyst will engage with your team directly and verify all of the information provided – your score may fluctuate at this point.
- Finally, it’s time to sign up for the B Corp Agreement.
What are the benefits of becoming a B Corporation?
Here are the main benefits of becoming a B Corporation:
- Encourages sustainability – by holding you accountable to your practices for social and environmental responsibility.
- Allows for cost-saving – as a business, you will have access to the community data. This provides your business with access to data that will allow you to learn the most cost-effective means to be sustainable.
- Attract the right employees – you will attract employees with the same mindset to improve the impact your business has on the environment.
Scepticism around B Corp certification
After the 2021 BrewDog allegations, there were a few questions asked around the validity of BrewDog being Certified – yet having an incredibly toxic culture. How did that slip through the evaluation stage? It had been ongoing for years, and every three years, it has to be re-certified.
What companies are examples are there of B-Corp?
Here are a few companies that have achieved the certification:
Read some of our in-depth blog posts on the following topics:
