Certified B Corporations® are leaders of the global movement of People Using Business as a Force for Good™. 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. Certified B Corporations represent a new (conscious!) This is a community of leaders, driving a global movement of people using business as a force for good. Allowing for the company's values to exist under new management, investors, or ownership. 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. ", 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. Enviro-Stewards has gotten an award as a B … Benefit corporations and Certified B Corporations are both leaders of a global movement to use business as a force for good. B Lab certification is not needed to obtain benefit corporation status. They are legally required to consider the impact of their decisions on their workers, customers, suppliers, community, and the environment. Certified B Corporations are companies that demonstrate high standards of social and environmental performance, according to certifying agency B … To achieve B Corp Certification, companies must meet credible, comprehensive, transparent and independent standards and earn a minimum audit … 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. The B-Corp way adjusts this position so that employees, suppliers, the environment and the wider community also get a look in alongside shareholders. In the United States, the avenue for corporations making the legal amendment to certify will depend on the state they are incorporated in. Some B Corps may also be allowed to charge annual fees, collect fundraising, and other non-profit activities that are inviting to investors. It also brings commercial benefits. 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. It drives you to form opinions and put your stake in the ground about how things are going to be. 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 … The application includes an Impact 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. [17] B Lab has an established standards advisory council that can independently make decisions with or without the support of B Lab. 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. 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. Some questions lifted from the Impact Assessment: You need to score 80+ out of 300 to qualify for the full B Corp Certification. The B Corp Enviro-Stewards, based in Canada, takes pride in energy efficiency, water conservation, and sustainable development. B Lab certifies companies based on how they create value for non-shareholding stakeholders, such as their employees, the local community, and the environment. 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. The B symbol you see tied to companies like Patagonia, King Arthur Flour, and Ben & Jerry’s is reserved only for certified B Corps. There are over 1,800 Certified B Corps in over 50 countries across 130 different industries. What secondary parental leave policies are available to your workers, either through your company or a government program? The leaders of B-Corps believe that sustainable business is better business and that they can use their business as a force for good. See Boatright (2006) and Johnstone and Lionais (2004). It also represents a new way to help conscious consumers make purchasing decisions that matter to them. The B Corp certification process measures a company's performance in five impact areas, including governance, workers, customers, community and … 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. Patagonia, Ben & Jerry’s, Ella’s Kitchen, Propercorn and Allbirds are all B-Corps. Benefit Corporation is a legal form. 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 … 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. Outwardly, the status sends a clear message to funders, employees and suppliers about your business. Certification Requirements The three pillars of B Corp Certification make it unique, material, and credible. Many B Corporations may qualify for 501c3 status because their mission is to create or maintain a good cause within the local community. It is also likely to draw in more customers—who we know are increasingly buying from companies that they believe behave ethically. The requirements of B-Corp cement this viewpoint into a measurable certification. 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. These requirements are: an in-depth review of public record of the companies, employees, products and other relative topics and randomised site visits. Certified B Corp. Our Story Sustainable Materials Ethical Manufacturing Certified B Corp We Quit B Corporations: Balancing Profit and Purpose. Certification also requires companies to integrate their stakeholder commitments into the company governing documents. Both meet higher standards of accountability and transparency. 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. It is sector agnostic—you do not need to be producing a product or service that in its own right is classed as sustainable. B-Corp is a certification that shows the world what your company stands for. On completing the assessment, companies are required to meet certain transparency requirements and background checks to become Certified B Corp(s). 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. Which companies can apply for B-Corp certification? 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. B Corp Certification is the only certification that measures a company's entire social and environmental performance. The questions make you think about things that you may not have previously articulated. "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? To be certified, companies must complete an Impact Assessment, which evaluates how their operations and business model impact their workers, community, environment, and customers. These include: However, B Lab certification allows the company bylaws to remain secret. 1.1.2. Becoming B Corp certified is no easy task. 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. [16], Currently the B Corp assessment is its fifth version, with the sixth version scheduled to be released in January 2018.[19]. These organizations are leaders who are committed to using business as a force for good. If your company has not been trading for 12 months, the full B-Corp certification is not an option. ). 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. [1] Companies must re-certify every three years to retain B Corporation status. 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. [4] To add on, many C corporations usually adapt the B Corporation Certificate to gain goodwill.[5]. However, the certification brings a multitude of branding tools to the corporation. B Corp is a certification. Think of it as the Good Housekeeping Seal of Approval for businesses voluntarily trying to do well by doing good. 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. [16] As of May 2014, 28 of 30 members were listed by their business affiliation. Tillamook qualified for the prestigious B Corp distinction by demonstrating the highest standards of social and environmental performance, transparency and accountability. [2] The most active community outside of the United States is Sistema B. The company needs to adhere their corporate legal structure to B-Lab regulation in order to qualify for the certification process. 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. 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. Ericsson shapes the future of mobile broadband Internet communications through its technology leadership, creating the most powerful communication companies. 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. Boston Business Journal: “Bringing their B game: Some Mass. 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. [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. There is instead a pending B-Corp status available to startups and new businesses. © 2020 Forbes Media LLC. To maintain credibility, the B Corporation certification standard operates under principles that are independent, comprehensive, comparable, dynamic, and transparent. This is a single focus goal, without reference to any other stakeholders involved with, or impacted by, that business. [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. [18] The council recommends improvements to the B Corp assessment on a biennial basis. 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. [20] Beyond the corporate model, other for-profit business entities make an amendment of the company by-laws or governing documents. 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. The B Corp certification process measures a company's performance in five impact areas, including governance, workers, customers, community and the environment. They want, rightly so, to see action from the companies that profit from their spending. 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. 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. Following a rigorous certification process, Tillamook County Creamery Association (Tillamook) is now recognized as a Certified B Corporation (B Corp). There is a one-off £500 fee when you apply. This page was last edited on 17 December 2020, at 10:01. Companies are required to provide supporting documentation before they are certified. Before we dive into how to define a B Corp, let’s make some important distinctions. A certified B-Corp is a company that balances profit and purpose. B-Corps like Ben and Jerry's balance profit and purpose (Photo by SHAUN MADER/Patrick McMullan via ... [+] Getty Images). Are there key performance indicators (KPIs) or metrics that your company tracks at least annually to determine if you are meeting your social or environmental objectives? What percentage of company facilities (by area, both owned by company or leased) is certified to meet the requirements of an accredited green building program? To learn more, watch the B Corporation … It analyses matters including your policies, operations, treatment of staff and environmental impact and scores your responses out of a total of 300. In order to become a B Corp, your organization has to get score of at … The high bar for treatment of staff is likely to attract top talent. A certified B-Corp is a company that balances profit and purpose. [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. 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. 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 are currently more than 3,500 B Corps in 150 industries and 74 countries around the world. Opinions expressed by Forbes Contributors are their own. It is not easy to get and this is what makes it so meaningful. To give this context and show how it differs to the usual company set up —the directors of a U.K. limited company have a duty to act in the best interests of its shareholders—and we can assume that this means delivering a financial return. Certifying as a B Corporation goes beyond a product or service certification. 4. It makes you be even better. All Rights Reserved, This is a BETA experience. 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. Certified B Corporations are social enterprises verified by B Lab, a nonprofit organization. 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. Academic contributions of loan forgiveness. From its start, Amy’s Kitchen has been committed to cooking vegetarian meals with meticulously sourced organic ingredients and taking care of people. Few would dispute that the requirements of the certification lead to a better way for businesses to be. B Lab also assists Sistema B in incorporating a benefit corporation distinction into local legal systems. 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. “Since our founding in 1909, Tillamook has embraced … [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. [15] Socially and environmentally-focused business model points ultimately are accrued in their relevant impact area (governance, workers, community or environment). Certified B Corporations are a new kind of business that balances purpose and profit. What is a Certified B Corp? It is about the way the business is run, how the team is treated, how it uses energy and treats the environment. Benefit corporations and Certified B Corporations are often confused. 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. 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. To give this context and show how it differs to the usual company set up —the directors of … 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. [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. [27], social and environmental certification of for-profit companies, Verification and transparency requirements. 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. No prioritization of one stakeholder over another. [26] This non-profit adapts proprietary certifications and evaluation metrics and modifies both to the context of each country. B Lab certification applies to the whole company across all product lines and issue areas. As of April 2020[update] there are over 3,300 certified B Corporations across 150 industries in 71 countries.[2]. 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. 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. There is a 30-day public consultation period before releasing a new version of the B Corporation assessment. B-Corps pay an annual certification fee based on revenue. It is the only certification that measures a company’s entire social and environmental performance. way to do business—one that balances purpose and profit. To obtain a B Corporation certification, a company first completes an online assessment. You may opt-out by. Yes, that’s right, you can get certified by earning less than 50% of the available points on the assessment. 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. What multiple is the highest compensated individual paid, inclusive of bonus, as compared to the lowest paid full-time worker. 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. 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