B Corporation (a.k.a. B Corp) is a certification program for companies that operate under the principle of doing business for good. When a company becomes B Corp certified, they not only meet some basic criteria in having good business practices, they also become part of the B Movement.

The movement started in 2006 with the belief that the world needs a different economic system. One that is inclusive, equitable, and regenerative. As of mid-2024 there are over 8700 companies across 100 countries and 162 industries that have joined forces with one objective – to make business A Force For Good.

B Lab is a non-profit organization that certifies companies to become B Corp. B Lab is also a global network with local or regional associated teams that help build the movement and community. Their work includes creating a business community amongst local B Corp, and training B Leaders (like me!) to represent and help amplify the movement. You can visit B Lab’s website here: https://www.bcorporation.net/

The B Lab founders, and everyone in the B Corp movement believes that a sustainable business model is to build a profitable company whilst still giving back to its community, caring for its workers, looking after our environment, making a positive impact to its paying customers, all through good governance and impact management.

Any for-profit company that has been operating for more than one year can apply for B Corp certification.

The B Corp certification is designed primarily for small businesses. Globally, approximately 85% of B Corps are SMEs.

You can think of the certification and recertification process as a pathway to guide SMEs on to a track for building a good corporate structure with their own values and integrity baked into their business model. Each company can shine with their own type of Impact Business Model.

Companies that wish to become B Corp must be prepared to adhere to the legal requirements established by B Lab as well. Each legislation is different, you can check the legal requirements for your country here: https://www.bcorporation.net/en-us/about-b-corps/legal-requirements/

These requirements are a formal declaration made by the company (most of the time, in their Articles of Association) that their management and decision making will always consider the welfare of all stakeholders and not only those which have financial gain in such decisions. There are certain industries that are subject to additional validations by B Lab, you can find an overview of those topics here: https://www.bcorporation.net/en-us/standards/controversial-issues/

Companies that wish to become B Corp certified are required to complete an assessment called the B Impact Assessment (BIA).

Each company must meet a minimum of 80 points (out of 200) to become a B Corp. Any company can attempt to answer the BIA through B Lab’s assessment portal, it is free of charge.

This assessment involves approximately 200 questions, covering five key impact areas: Governance, Workers, Community, Environment and Customers; as well as key disclosure questions to vet whether the company deals with any controversial industries or trade.

The questions for each application may vary depending on the industry, sector, size of the company. There are over 70 different tracks possible, and the applicability of questions as well as the scores each question is worth are adjusted dynamically. It is important to note that some points are mutually exclusive from each other or depend on the industry and sector, so you will probably never see a 200-point B Corp company.

Once the company completes their self-assessment, they will be reviewed by B Lab. B Lab will verify the assessment through interviews and request evidence from the companies. The final score is then assigned by B Lab.

The company will pay a submission and verification fee to B Lab at the time they submit their application.

Upon becoming certified, the company will pay an annual fee as well. Make sure that you check the local B Lab webpage to see the applicable fees as they vary. Find your local B Lab here: https://www.bcorporation.net/en-us/movement/global-network/

The fee is scaled based on a company’s annual revenue, and for certain markets there are discounts for companies that are owned by individuals that traditionally suffer a higher barrier of entry into the business world.

No. Having good business practices at the time of certification does not always mean those practices can be sustained over time. A sustainable business model must stand the test of time, and progressively improve its impact.

B Corp companies need to be recertified every 3 years, and they must do so at least 6 months before their certification expires. The scoring system allows companies to build their own ESG strategy and roadmap to secure their re-certification and at the same time, continuously add more value to society as a business.

If you need support in planning for your recertification, check out my services here.

Yes. The B Impact Assessment requirements are driven by a set of standards which are governed by the Standards Advisory Council. This Council is an independent group from B Lab and is responsible for advising on the relevance of the assessment standards to make sure that it continues to align with the forever changing business landscape.

Currently, B Lab is using version 6 of the assessment standards, and a new set of standards is expected to be finalised by the end of 2024, with effectiveness 2025.

The B Corp certification process is not a short journey. From preparation until certification, it can take around 9 months to one year and there are many checkpoints to pass before reaching this milestone.

A B Leader is a tour guide to your journey throughout B Corp. Some companies may decide to explore the path themselves; some companies may wish to receive guidance during the journey.

Most SMEs start off around 19-32% away from the passing score and are not sure what to do to be able to submit their assessment (The submission requirement is to meet at least 80 points). This is where most companies end up working with B Leaders to identify and make improvements in various areas before they submit their application.

B Leaders can also help companies during the certification process to make sure that nothing falls through the cracks, and business owners are equipped to accurately explain their impact during the process.

If you need support in your certification, check out my services here.