[27], social and environmental certification of for-profit companies, Verification and transparency requirements. These organizations are leaders who are committed to using business as a force for good. Around the world, organizations, including the University of St. Augustine for Health Sciences, are undergoing rigorous reviews by the nonprofit group B Lab in their quest to become a Certified B Corp organization. In the United States, the avenue for corporations making the legal amendment to certify will depend on the state they are incorporated in. B Corporation (also B Lab or B Corp) certification of "social and environmental performance" is a private certification of for-profit companies, distinct from the legal designation as a Benefit corporation. B Corp is the term used for any for-profit entity that is certified by the nonprofit B Lab as voluntarily meeting higher standards of transparency, accountability, and performance. However, the certification brings a multitude of branding tools to the corporation. They are just 5 of the more well known 3,200 B-Corps, which sit across 150 industries in 64 countries. A certified B-Corp is a company that balances profit and purpose. "Certification | Certified B Corporation", "Benefit Corporations Have Arrived in Massachusetts", "Benefit Corporations & Certified B Corps | Benefit Corporation", "Loan Assistance Program – Detailed Summary", "Making a Difference (and a Profit): Advantages and Disadvantages of Forming or Converting into a "B" Entity| Lexology", "Delaware Just Made It A Whole Lot Easier For Socially Responsible Companies To Exist", "Corporate Social Responsibility Comes In Many Flavors, Some Not So Tasty", "OLR Backgrounder: Social Enterprise and the Benefit Corporation", "Certification Requirements | Certified B Corporation", "In Just a Few Months, Sistema B (AKA: B Corp) Finds Fertile Ground for Social Enterprises in Latin America", "B Lab and Sistema B Partner to take B Corps Global", "What's Wrong—and What's Right—with Stakeholder Management", "Benefit Corporations—A Sustainable Form of Organization? [25] Since 2012, Sistema B has been the adaptation of the B Corps movement in Latin America, including in Argentina, Brazil, Chile, Uruguay and Colombia. They want, rightly so, to see action from the companies that profit from their spending. Many B Corporations may qualify for 501c3 status because their mission is to create or maintain a good cause within the local community. Benefit corporations and Certified B Corporations are both leaders of a global movement to use business as a force for good. To obtain a B Corporation certification, a company first completes an online assessment. [4] To add on, many C corporations usually adapt the B Corporation Certificate to gain goodwill.[5]. There are over 1,800 Certified B Corps in over 50 countries across 130 different industries. On completing the assessment, companies are required to meet certain transparency requirements and background checks to become Certified B Corp(s). [4], B Corp Certification will bring no legal liabilities to a C Corporation or any for profit business structures apart from its business model structure which should adhere to the B Labs. Once a firm crosses a certain performance threshold on these dimensions, it makes amendments to its corporate charter to incorporate the interests of all stakeholders into … In the United States, a benefit corporation (or in several jurisdictions including Delaware, a public-benefit corporation or PBC) is a type of for-profit corporate entity, authorized by 35 U.S. states and the District of Columbia that includes positive impact on society, workers, the community and the environment in addition to profit as its legally defined goals, in that the definition of "best interest of the corporation" is … Boston Business Journal: “Bringing their B game: Some Mass. “Since our founding in 1909, Tillamook has embraced … It makes you be even better. B Corporation (also B Lab or B Corp) certification of "social and environmental performance" is a private certification of for-profit companies, distinct from the legal designation as a Benefit corporation. Some questions lifted from the Impact Assessment: You need to score 80+ out of 300 to qualify for the full B Corp Certification. It analyses matters including your policies, operations, treatment of staff and environmental impact and scores your responses out of a total of 300. © 2020 Forbes Media LLC. To learn more, watch the B Corporation … In order to become a B Corp, your organization has to get score of at … As a startup or new business, why go for pending B-Corp status? The B-Corp way adjusts this position so that employees, suppliers, the environment and the wider community also get a look in alongside shareholders. There is instead a pending B-Corp status available to startups and new businesses. The journey to B-Corp starts by registering and going through a very long and thought provoking set of questions with multiple choice answers—you need to “go deep” with your business. Benefit corporation is a legal status conferred by state law in the US; B Lab certification is issued by a non-profit organization and has no legislative framework. A founder many times over, most recently 'now, sit down', which designs and sells circular furniture & "In the Loop" a community for circular economy businesses. Amy's Kitchen Earns B-Corp Certification Organic food maker Amy’s Kitchen has received a B Corp Certification due to its long-time commitment of "doing well by doing good," says the food maker. There is a fellowship of B Corporations that shares resources. Certified B Corporations are businesses that meet the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose. Certifying as a B Corporation goes beyond a product or service certification. What multiple is the highest compensated individual paid, inclusive of bonus, as compared to the lowest paid full-time worker. B Lab certification is not needed to obtain benefit corporation status. A certified B Corp is a for-profit business that has gone through a rigorous review process to ensure that it’s socially and environmentally responsible. It is the only certification that measures a company’s entire social and environmental performance. This is a single focus goal, without reference to any other stakeholders involved with, or impacted by, that business. To give this context and show how it differs to the usual company set up —the directors of … B Corp Certification is the only certification that measures a company's entire social and environmental performance. There is a 30-day public consultation period before releasing a new version of the B Corporation assessment. I think we will see a continued increase in the number of certified B-Corp businesses in the U.K. and as we do, the certification will start to mean more to the average consumer and household, actively influencing their spending behaviour. [3], As a matter of law, in Massachusetts or States that recognize B Corporation Certification, it doesn't bring any legal significance to its shareholders, stakeholders or to its employees. Some B Corps may also be allowed to charge annual fees, collect fundraising, and other non-profit activities that are inviting to investors. There is a widely held view, growing in momentum, that businesses need to play their role in driving societal and environmental change—rather than leaving that to government and charities. The assessment covers the company’s entire operation and measures the positive impact of the company in areas of governance, workers, community, the environment, as well as the product or service the company provides. B Corp certification is conferred by B Lab, a global nonprofit organization with offices in the United States, Europe, Canada, Australia and New Zealand, and a partnership in Latin America with Sistema B. Becoming B Corp certified is no easy task. There are currently more than 3,500 B Corps in 150 industries and 74 countries around the world. The high bar for treatment of staff is likely to attract top talent. B Lab certification is a third-party standard requiring companies to meet social sustainability and environmental performance standards, meet accountability standards, and be transparent to the public according to the score they receive on the assessment. Both meet higher standards of accountability and transparency. To achieve B Corp Certification, companies must meet credible, comprehensive, transparent and independent standards and earn a minimum audit … These include: However, B Lab certification allows the company bylaws to remain secret. It is not easy to get and this is what makes it so meaningful. An issue in deciding to be a Certified B Corporation would be the administrative and legal costs a corporation will face in changing their business model in accordance to B Labs regulations. ). B-Corps like Ben and Jerry's balance profit and purpose (Photo by SHAUN MADER/Patrick McMullan via ... [+] Getty Images). Completing the Impact Assessment is really useful for prompting the thinking up front about critical foundations for your business. Some states known as "constituency" states will allow for this change in the articles of incorporation, other states, known as "non-constituency states", will not; and many states now have the option of adopting the benefit corporation legal structure, which also meets B Lab's requirements for B Corp certification. To be granted and to maintain certification, companies must receive a minimum score from an assessment of "social and environmental performance", integrate B Corp commitments to stakeholders into company governing documents, and pay an annual fee based on annual sales. They are legally required to consider the impact of their decisions on their workers, customers, suppliers, community, and the environment. ", https://en.wikipedia.org/w/index.php?title=B_Corporation_(certification)&oldid=994749012, Short description is different from Wikidata, Articles containing potentially dated statements from April 2020, All articles containing potentially dated statements, Creative Commons Attribution-ShareAlike License. The company needs to adhere their corporate legal structure to B-Lab regulation in order to qualify for the certification process. The B symbol you see tied to companies like Patagonia, King Arthur Flour, and Ben & Jerry’s is reserved only for certified B Corps. [26] This non-profit adapts proprietary certifications and evaluation metrics and modifies both to the context of each country. Companies are required to provide supporting documentation before they are certified. The B Corp certification process measures a company's performance in five impact areas, including governance, workers, customers, community and … This is a community of leaders, driving a global movement of people using business as a force for good. 4. This page was last edited on 17 December 2020, at 10:01. [24], In June 2019, there were over 2,750 certified B Corporations across 150 industries in 64 countries, including Canada (78 companies), Australia, South Africa, and Afghanistan. To be granted and to maintain certification, companies must receive a minimum score from an assessment of "social and env… Certified B Corporations are companies that demonstrate high standards of social and environmental performance, according to certifying agency B … Certified B Corporations® are leaders of the global movement of People Using Business as a Force for Good™. Certified B corporations help make positive changes by working to reduce inequality, incorporating sustainable practices to help the environment, creating strong communities, and creating high-quality job opportunities that give individuals a sense of purpose. Legislation for the passage of this corporate legal status has been passed in 35 states, including, The establishment of clear wording to "consider stakeholder interests" in company. There are a few terms that are similar and definitely related which can sometimes cause confusion: Certified B Corporation, benefit corporations, businesses with corporate social responsibility (CSR) initiatives, and mission-driven companies to name a few. [15] Socially and environmentally-focused business model points ultimately are accrued in their relevant impact area (governance, workers, community or environment). Certification Requirements The three pillars of B Corp Certification make it unique, material, and credible. [16] Depending on a company's industry, geographic location, and number of employees, the online assessment adjusts the weightings of the question categories to increase its relevancy. Academic contributions of loan forgiveness. [20] Beyond the corporate model, other for-profit business entities make an amendment of the company by-laws or governing documents. It drives you to form opinions and put your stake in the ground about how things are going to be. There is a one-off £500 fee when you apply. Yes, that’s right, you can get certified by earning less than 50% of the available points on the assessment. The leaders of B-Corps believe that sustainable business is better business and that they can use their business as a force for good. Fees start at $500 for businesses with under $200,000 in revenue, up to $50,000 for businesses with more than $1 billion in revenue. B Lab also assists Sistema B in incorporating a benefit corporation distinction into local legal systems. companies aren’t focused on profit alone” In February 2016, Boloco became a certified B-Corp as well as a Delaware Benefit Corporation, joining an inspiring group of companies (Patagonia, King Arthur Flour, Warby Parker, etc. To be certified, companies must complete an Impact Assessment, which evaluates how their operations and business model impact their workers, community, environment, and customers. Certified B Corporations represent a new (conscious!) Benefit Corporation is a legal form. As of April 2020[update] there are over 3,300 certified B Corporations across 150 industries in 71 countries.[2]. They share much in common and are complementary, but have a few important differences. Companies that earn a minimum score of 80 out of 200 points undergo an assessment review process, essentially a conference call verifying the claims made in their assessment. Benefit corporations and Certified B Corporations are often confused. Certified B Corporations are social enterprises verified by B Lab, a nonprofit organization. Certified B Corporations® meet the highest standards of verified overall social and environmental performance, transparency, and accountability, and aspire to use the power of business to solve social and environmental problems. Are there key performance indicators (KPIs) or metrics that your company tracks at least annually to determine if you are meeting your social or environmental objectives? To maintain credibility, the B Corporation certification standard operates under principles that are independent, comprehensive, comparable, dynamic, and transparent. What is a Certified B Corp? [1] Companies must re-certify every three years to retain B Corporation status. The B Corp certification process measures a company's performance in five impact areas, including governance, workers, customers, community and the environment. What percentage of company facilities (by area, both owned by company or leased) is certified to meet the requirements of an accredited green building program? Certification also requires companies to integrate their stakeholder commitments into the company governing documents. [2] The most active community outside of the United States is Sistema B. See Boatright (2006) and Johnstone and Lionais (2004). To give this context and show how it differs to the usual company set up —the directors of a U.K. limited company have a duty to act in the best interests of its shareholders—and we can assume that this means delivering a financial return. This is your complete guide to the performance, legal, and transparency requirements to become a Certified B Corp. Once companies meet all below requirements, they pay an annual Certification fee. It is sector agnostic—you do not need to be producing a product or service that in its own right is classed as sustainable. Tillamook qualified for the prestigious B Corp distinction by demonstrating the highest standards of social and environmental performance, transparency and accountability. B-Corp is a certification that shows the world what your company stands for. 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