What is a B Corp? Everything You Need to Know
What is a B Corp? It's a simple question with a not-so-simple answer. Broadly speaking, B Corp or B Corporations are for-profit companies that meet certain standards of social and environmental performance, accountability, and transparency. In other words, they're a business that cares about communities, their team and the environment instead of just making money.
The B Corp Certification is unique because it measures a company’s entire social and environmental performance. From supply chain and input materials to charitable giving and employee benefits, B Corp Certification verifies that a business is meeting these high standards across a range of areas.
If you're a decision maker or small business owner, you might be wondering if becoming a B Corp is right for your company. As a sustainability consultant I’ve helped small businesses in making this decision, explaining the pros and cons of B Corp and what it would mean for your company. Here's everything you need to know about B Corps to help you make an informed decision.
What is a B Corp, and how does it differ from a traditional corporation?
As an increasing number of people have become more aware and conscious of the ethical transgressions that can emerge from regular corporations, a new kind of company has entered the arena: B Corps. Since B Corp started in 2015, they have challenged the status quo and have inspired a variety of industries to incorporate sustainability into the heart of their business.
Unlike traditional corporate models, B Corps always aim to connect business practices with what's best for workers, the community, society, and the environment. It's essentially a commitment to sustainability taken one step further - not only are profits considered but also how their activities affect people and the planet. It is not just a take-take business model, but they give back too. This new way of doing business is becoming increasingly attractive in certain sectors as it sets its sights on creating companies that will benefit all stakeholders.
The benefits of becoming a B Corp certified business
“98% believe that being a B Corp is likely to contribute to the future success of their company”
B Corps Community Survey, 2021
Becoming a B Corp certified business is an amazing way to demonstrate your commitment to ethical and responsible practices. It's a statement that your company takes its impact on society, workers, the environment and customers seriously - which can help you make a powerful impression with current and potential customers and create a great sense of trust among stakeholders. Plus, having the B Corp certification provides proven tools and resources to help your business grow in positive ways for both internal and external purposes; whether it be creating more equitable rewards for employees or reducing your energy consumption. Becoming B-Corp certified is an incredibly worthwhile investment for any business looking to make its operations more socially conscious.
How to become a B Corp certified business
To become a B Corp certified business, you must first take the B Impact Assessment. This assessment measures how your current operations affect all stakeholders and provides detailed guidance on areas where improvement can be made. After completing the assessment, you will receive a report outlining your performance in the five categories: Governance, Workers, Community, Environment, and Customers. From there, you must take the necessary steps to reach a score of 80 or higher in each category before applying for B Corp certification.
Our Detailed Step-by-Step Guide to Becoming a B Corp
Fill out the B Impact Assessment (BIA) - a confidential online tool to measure and prove your company's social and environmental impact. The BIA is roughly 200 questions tailored to your company's industry and size.
Complete the Disclosure Questionnaire - this allows you to confidentially disclose to B Lab any sensitive practices, fines, and sanctions related to your company or its partnership without impacting your score.
Improve Your Score (achieving at least 80) - work through your BIA and focus on a few quick wins that can easily be implemented into your business. Then address other areas and create an improvement plan to drive sustainability in every area of your business.
Meeting Legal Requirements - your business is required to adopt legal change and specific wording in your Articles of Association.
Submit Your BIA - make sure you are happy with your application and press the button!
Evaluation and Verification - this stage will include background checks into the business and information provided. This whole process can take over a year.
After You Certify - Congratulations! You made it! Now you have to sign the B Corp Agreement and pay their annual fee.
Enjoy the benefits of being part of the global B Corp Community - Start using the B on your social media, packaging etc. Join B Hive, B Local, collaborate with other B Corps, and sign up for events to continue your sustainability learning.
Annual B Impact Report - During the two-year period between certifications, all B Corps are required to publish an annual impact report. This report is public and helps you stay on top of your goals and targets.
Recertify in 3 Years' Time - you have to recertify every 3 years, and I recommend staying on top of your certificate and not leaving it until the last minute!
The process of becoming a B Corp certified business is more than just a badge of honour - it's an opportunity to make positive contributions to society and become part of an ever-growing community of companies that are dedicated to driving social and environmental change. By committing to this important certification, you can show your customers and stakeholders that your company is much more than just a business - it's an ethical leader in its industry. And with the right measures in place, you'll be well on your way to becoming a certified B Corp business with a higher purpose.
How hard is it to become a B Corp?
Earning the B Corp certification is a great achievement and not one to be taken lightly. It can be difficult to reach the required standards, but with enough determination and research, it is within reach for any company. B Corps have to meet rigorous social and environmental criteria, and passing their assessment shows you are genuinely committed to creating long-term positive change in the world. Becoming a B Corp can open new opportunities for customers, employees and partners alike, allowing them to share in the success of your company's ethical mission. Boasting a B Corp certification sets your company apart from the competition, demonstrating that you are transparent in all of your activities and focused on making a difference with every decision.
The impact that B Corps are having on the business world
In recent times, B Corps are revolutionising the way businesses operate and how they interact with people and the planet. An initiative of conscious capitalism, they are a growing global phenomenon that emphasises traditional business practices while integrating ethical principles and sustainability. For instance, corporations become B Corps if they meet certain standards in terms of social or environmental performance, accountability, and transparency. As such, businesses both large and small are making decisions that prioritise their customers and the planet's well-being above all else. This is having an overwhelmingly positive effect on society by acting as a form of advocacy for social benefit and leveraging profit in order to create a better world to live in. It is therefore evident that B Corps are setting new precedents for how businesses can use their influence to make a substantial impact on our world today.
How much is it to become a B Corp
Once you submit your assessment, a one-off submission fee of £250 (plus VAT) is payable to B Lab to ensure the company’s commitment to the full verification process. Certification fees are paid annually and we have fee bands in place to ensure B Corp Certification is affordable for all businesses.
For B Corps, certification fees are then paid annually and are calculated based on your company’s total revenue on the last set of audited accounts. Companies £1bn+ in revenue should contact B Lab UK for pricing information.
Is B Corp worth it?
“88% of B Corps would recommend certification to other companies”
B Corps Community Survey, 2021
Becoming a Certified B Corp is an ethical decision that has the potential to change not just your own business, but the world. It's an opportunity to take responsibility for your company's impact on society - from its employee wellness to environmental sustainability. The shift in mindset can be intimidating at first, but the investment is worth it and the real-world benefits quickly become evident.
As part of a community of like-minded companies and organisations, you can learn more about best practices, access resources and work with innovative partners, helping you along the way to becoming a more responsible business. The results speak for themselves: being part of this movement isn't just good for your bottom line - it will make you proud every time you say it: We are proud to be a B Corp!
Do you need help certifying and want to find out more?
We would love to help! B Corps are having a big impact on the business world and the way that businesses operate. If you're interested in becoming a B Corp-certified business, it's not as hard as you might think, but having an informed guide can make the process far less overwhelming and dare we say - enjoyable. There are many benefits to becoming B Corp-certified, including positively impacting society and the environment. Are you considering becoming a B Corp? Do you need help with the process? Let us know; we're here to help.