The B Corp movement is growing rapidly, with more than 6000 certified B Corporations worldwide. This movement has followed a shift in consumer behaviour brought on by ethical and sustainable principles.
With a rise in greenwashing statements, 83% of consumers are more likely to trust in claims that a third party has verified – that’s where B Corp comes in.
If you’re wondering:
Then keep reading!
B Corp is a global movement with a vision: that businesses working together as a force for good can change the world. It ensures that companies not only compete to be the best in the world but the best for the world.
The movement is helping to redefine success in business and challenge our economic system that prioritises making money for shareholders. Stakeholders such as employees and customers often take second place to profit – along with organisations impact on the environment.
B Corporations disrupt the traditional economic system by recognising and taking responsibility for their impacts while generating profit. They adopt a stakeholder-driven approach to business which allows them to balance profit and purpose.
“We are shifting our global economy from a system that profits few to one that benefits all” – B Lab
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.
The certification shows that a company has had its claims voluntarily investigated by a third-party organisation and has taken legal accountability for its impact on stakeholders.
A B Corp certification also indicates that you are practicing transparent business. B Lab will publish your social and environmental performance on the B Corp website as part of the certification process. Any public member can view your impact and see how you rank amongst other organisations.
Amid the climate emergency, conscious consumerism is on the rise. Customers are putting their ethical priorities at the forefront of their buying decisions. A recent survey by Regenerate in collaboration with B Lab found that 79% of customers are more loyal to purpose-driven companies that are environmentally and socially responsible.
Trust is also a critical factor in creating a loyal customer base. 67% of people reported that a good reputation might get them to sample a product. However, they would not repeat their purchase if they could not trust the company’s claims after further investigation.
Having your claims backed up by a third party is a highly effective way to showcase that your business is credible. This way, consumers can have confidence that your statements toward social and environmental governance are trustworthy.
When you become a B Corp, you enter a community of organisations with a similar vision. Being part of a community of like-minded peers provides a fantastic opportunity for B Corporations to collaborate and share ideas. The B Corp status can also lead to media coverage and event invitations – a chance for Small-to-Medium Sized Enterprises (SMEs) to put their name on the map.
The B Corp status is invaluable in helping to attract, retain, and engage employees. The certification immediately indicates that your organisation cares about people and the planet to potential employees. A company’s moral standing is evidently a key factor in recruitment, with a recent survey revealing that 70% of employees are more likely to join a company with a solid environmental purpose.
“71% of B Corps reported that potential employees were interested in their company as a result of their B Corp status.” – Regenerate, 2020
Having a purpose that your employees can connect with can boost morale and bring to light the more significant meaning behind their work. Everyone who works for a B Corporation can join B Hive, the B Corp community platform that allows B Corp employees to collaborate with like-minded professionals.
At Green Element, each employee spends one day a month working pro bono for a charity of our choice, allowing us to give back and foster a sense of community and purpose.
Before the B Corp certification process, organisations are often aware of weak points within their business practices. However, the rigorous nature of the process will shine a light on areas of improvement that you may have never uncovered.
Having your social and environmental performance vetted by a third party will provide a coherent overview of your company’s impact and highlight how you compare to other organisations.
Businesses operating in a competitive market for at least 12 months can apply to become a B Corp.
To become B Corp certified, you must:
The B Impact Assessment allows businesses to measure and manage their social and environmental performance. The assessment is entirely confidential and provides a standardised framework for measuring the impact on the company’s stakeholders.
The assessment has five key areas: Governance, Workers, Community, Environment, and Customers. To pass the assessment, you must achieve a minimum of 80 points out of a potential 200.
Passing the assessment is no easy feat, and earning a 40% pass rate is more challenging than it sounds. Over 150,000 organisations are currently using the B Impact Assessment to analyse their impact, while only around 4700 organisations have successfully gained B Corp status.
It is rare for organisations to achieve 80 points on their first assessment. Many companies use the first time around to identify weak points within the business and set out to make improvements.
You can flag up areas of weakness as you go through the assessment, create a goal, and set a time frame to improve. This system makes it easy for you to track your progress and keep on top of any adjustments made. You can also stop and start the assessment when convenient and assign team members to organise information easily.
Implementing the B Corp legal requirement is essential for the B Corp certification. It formalises your company’s commitment to B Corp values and sets you apart from other organisations.
Organisations must embed the B Corp mission into their legal documentation. This involves a commitment to:
Once you have reached 80+ points on the assessment and completed the disclosure questionnaire, you can submit your assessment for review. B Lab will evaluate your assessment and conduct background checks on the company.
You are required to provide supporting evidence on your assessment. The evidence will be discussed on a review call with your organisation and B Lab before verification.
Once your company has passed the verification process, you will sign the B Corp agreement to make your certification official.
The B Corp certification is only the beginning, and it marks the start of your journey as an organisation devoted to positively impacting the world.
To maintain your B Corp certification, you need to:
The recertification process allows you to continue operating as a B Corp and enables you to stay ahead of the curve. The B Corp Certification standard will hold you accountable to the highest level of social and environmental responsibility and ensure that you are up to speed on best practices for businesses.
Ready to start your journey to becoming a B Corp? Get an insight into how B Corp can change your business by listening to our recent podcast. It features certified B Corporations discussing their incredible journey to becoming socially and environmentally accountable.