You may have heard companies or fellow founders you follow on LinkedIn shouting about it, you might have seen the logo on the packaging of products you buy; but what is a B Corp and what’s all the fuss?
“The B Corporation Movement’s vision is complex and ambitious: the creation of an economic system that is at once inclusive, equitable and regenerative,” writes B Lab UK executive director Chris Turner in a blog outlining how B Corp can overturn mainstream “extractive and exploitative” economic models.
What is a B Corp?
A non-profit network aiming to transform the global economy so that it provides long-term value for the planet and its people, rather than just shareholders, B Lab certifies businesses as B Corporations – B Corps for short. B Corps must meet strict criteria for ESG (environmental, social and governance) performance. They are transparent and accountable to all their stakeholders. And they are committed to using their business operations to positively transform conditions for employees, clients, wider communities, and the planet.
Where and why did the movement start?
Founded in the US in 2006, the B Corp Movement has spread across the world. The B Global Network now boasts over 5,000 B Corps across 79 countries, 154 industries and represents over 400,000 workers. It also encompasses global, regional and national partner organisations, all committed to the ‘Theory of Change’, which aims to restructure corporate culture, alter business behaviour, and redesign legal systems. B Lab UK was created in 2015 to advance the cause in this country.
What is the purpose?
The B Global Network is working to redefine the role of business as a force for good and transform economic norms through five strategies:
- Drive the adoption of B Lab’s standards to manage the impact of business.
- Certify and engage businesses to improve their impact.
- Articulate and amplify stories of business as an equitable force for good.
- Catalyse policy change to enable business as a force for good.
- Develop a network of local, regional, and global communities for change.
How does the certification work?
To become a B Corp, a business must pass the certification process. Any profit-oriented organisation with 12 months in operation can apply. The first phase is the B Impact Assessment (BIA), a free online tool to benchmark positive social and environmental impact. There are around 200 sector-, location- and size-specific questions, with a score of 80 or more points needed. This score line is rarely reached at the first attempt, and B Lab supports improvements through best practice guides and goal setting tools. Applicants must also embed a commitment to positive material impacts in their Articles of Association. Following an 80+ BIA score and disclosure questionnaire, the evaluation and verification process ensues. Once certified, to maintain B Corp status, companies must publish an annual impact report and undertake recertification every three years.
Is it just another example of greenwash?
The B Corp badge isn’t something that companies can pin on their websites and then move on. The requirements for transparency, fundamental legal and cultural changes, and continuous improvement to meet evolving standards set B Corp certification beyond the sphere of greenwash. The rigorous process, which can take months and significant investment to complete, ensures that those embarking on the process are genuinely committed the movement’s goals.
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