What is it?
A B Corporation (B Corp) is a type of for-profit business that has been certified by the non-profit B Lab to meet rigorous standards of social and environmental performance, accountability, and transparency. B Corp is to business what Fair Trade certification is to coffee or USDA Organic certification is to milk.
How does it work?
To become a B Corp, a company must first complete an assessment that measures its impact on its workers, customers, community, and the environment. Then, the company must meet a legal accountability standard and sign a Term of Intermediary Membership. After certification, B Corps are legally required to consider the impact of their decisions not only on their shareholders, but also on their stakeholders (e.g., the community, the environment).
Real-World Impact
There are thousands of Certified B Corporations in over 50 countries, covering a wide range of industries. For example, Patagonia, a clothing company, is a B Corp that is committed to environmental sustainability and ethical production processes. Another example is Ben & Jerry’s, the ice cream company, which is committed to fair trade and social justice.
How to Get Started
To become a B Corp, a company must first take the B Impact Assessment, which is free and confidential. This assessment measures the company’s current impact and helps to identify areas for improvement. After that, the company must meet the legal requirements for certification and sign the B Corp Agreement. There is also an annual certification fee based on the company’s annual sales.
Get the Empress Edge
Understanding and pursuing B Corp certification can provide numerous benefits. For one, it allows a company to differentiate itself in the marketplace as a business that values not just profit, but also people and the planet. This can attract customers and employees who share these values. In addition, the certification process provides a framework for measuring and improving a company’s social and environmental performance, which can lead to operational efficiencies and innovation. Finally, being part of the B Corp community provides opportunities for networking and collaboration with other mission-driven businesses.