Who is B Lab and What is a B Corp?

Business as a force for good – this is the underlying vision of B Lab. Founded in 2006 in the USA, this non-profit organization certifies for-profit companies as B Corporations – B Corps for short. The “B” stands for beneficial and the benefit to society and the environment these businesses are providing.

Today, members of the global B Corp community are working together to make the planet a better place. How are they doing this? By putting business practices to the test. Interested companies must undergo a rigorous certification process according to strict criteria: What values does it live by in terms of its management style? What rights do its employees have? What is its impact on the environment, society and customers? A company with certified B Corp status means that it meets the highest standards of verified social and environmental performance, balancing profit and purpose.

Why Become a B Corp?

• Enhanced Reputation: B Corp certification can significantly boost a company’s reputation as a socially responsible and ethical business. This can attract customers, investors, and top talent.
• Improved Stakeholder Relationships: By demonstrating a commitment to social and environmental impact, B Corps can build stronger relationships with employees, customers, suppliers, and communities.
• Increased Innovation: B Corp certification can encourage innovation and creativity as businesses seek new ways to address societal and environmental challenges.
• Legal Protection: B Corp status provides legal protection for companies that want to pursue a mission-driven business model. This can help shield businesses from shareholder lawsuits that might otherwise force them to prioritize profits over social and environmental goals.

How do companies become certified B Corps?

To receive B Corp certification, companies work with B Lab to evaluate their business, down to the last detail. At the heart of the process is the B Impact Assessment. This tool measures how business decisions affect all stakeholders – shareholders, employees, customers and suppliers. An Impact Assessment Score of 80+ points allows a company to take the next step towards certification. Legal accountability plays a key role: for example, by resolution of the Weleda owners, the pursuit of the common good and ecological well-being is now anchored in our bylaws. Certified companies support the B Corp movement with an annual certification fee, sign the B Corp Declaration of Interdependence and agree to the terms of agreement. Our positive impact is supported by transparency: the detailed assessment report is available to the public.

Benefits of B Corp Certification

In addition to the benefits mentioned earlier, B Corp certification can also:

• Increase Employee Engagement: Employees of B Corps often report higher levels of satisfaction and engagement, as they feel proud to work for a company that is making a positive impact.
• Attract Investors: Investors who prioritize social and environmental responsibility are increasingly interested in B Corps.
• Improve Supply Chain Relationships: B Corp certification can help companies build stronger relationships with suppliers who share their commitment to sustainability.
• Foster Innovation: By focusing on social and environmental impact, B Corps can develop innovative products and services that address pressing societal challenges.

Challenges of B Corp Certification

While B Corp certification offers many benefits, it also presents some challenges. These include:

• Cost and Time: The certification process can be time-consuming and expensive.
• Rigorous Standards: Meeting the B Corp standards can be challenging, especially for larger companies.
• Evolving Expectations: The expectations for social and environmental performance are constantly evolving, which can make it difficult for companies to maintain their B Corp status.

Conclusion

B Corp certification is a valuable tool for businesses that want to make a positive impact on the world. By demonstrating a commitment to social and environmental responsibility, B Corps can build stronger relationships with stakeholders, attract top talent, and foster innovation. While the certification process can be challenging, the benefits often outweigh the costs. For businesses looking to make a difference, B Corp certification is a worthwhile goal.