B Corp Certification: Everything You Need to Know

Written By Jenny Morgan

We’ve seen certifications like USDA Organic, Fair Trade and Energy Star which help guide the consumer in knowing what is a “good product.” But what about the company itself? The B Corp Certification does just that. It tells the consumer that this is a “good company.” One they can trust.

What is a B Corp?

B Lab is a nonprofit network that is transforming the global economy to benefit all people, communities, and the planet. The organization began in 2006 with the idea that a different kind of economy was not only possible, but necessary — and that business could lead the way towards a new, stakeholder-driven model. The key word being “stakeholder” which includes employees, customers, and the community, not just the shareholders. B Corps are for-profit organizations that have gone through B Lab’s third-party verification process, measuring rigorous standards of social and environmental performance, accountability, and transparency.

These statistics were pulled at the time this article was published. Visit https://www.bcorporation.net to learn more.

Due to the rigorous standards a company must meet to be deemed a “B Corp,” the certification is providing what is lacking elsewhere, which is proof. When a company applies for the certification, the entire organization and its practices are evaluated. To obtain a holistic view of the company, worker engagement, community involvement, environment footprint, governance structure, and customer relationships are all included in the test, aka the B Impact Assessment. It takes hard work, but it allows for organizations and their stakeholders to be part of something bigger. It is a true mental shift that represents a global movement of people using business as a force for good.

What does the B Impact Assessment Entail?

Organizations are measured on their practices and outputs across five key categories:

  • Governance

    • Goal: Enhance policies and practices pertaining to the mission, ethics, accountability and transparency.

    • Sample Question: What portion of your management is evaluated on their performance with regard to corporate, social, and environmental targets?

  • Workers

    • Goal: Contribute to your employees’ financial, physical, professional, and social well-being.

    • Sample Question: Does your company provide training opportunities to workers for professional development?

  • Community

    • Goal: Contribute to the economic and social well-being of applicable communities.

    • Sample Question: What practices does your company have in place around diversity, equity, and inclusion?

  • Environment

    • Goal: Improve the company’s overall environmental stewardship.

    • Sample Question: Does your company have any programs or policies in place to reduce the environmental footprint caused by travel/commuting?

  • Customers

    • Goal: Improve the value that you create for your customers and the consumers of your products or services.

    • Sample Question: Does your company manage and measure the impact and value created for your customers or consumers?

Committing to Being Profitable & Purposeful

The B Impact Assessment typically takes about two hours to complete, depending on your industry, company size, and if you have preemptively gathered all the information you need. To be eligible for the certification, companies must reach a minimum of 80 points. Typically, organizations score 40 - 60 points on their first try, so it is important to seek progress over perfection. Refer to the demonstration video at the bottom of the blog if interested in viewing the B Impact Assessment platform.

Once a score of 80+ is reached, the organization must submit the assessment for review. B Lab will request supportive documentation to audit the answers within the assessment, and then conduct an in-depth review. This may take six to twelve months depending on the influx of applications; therefore, it is best to be as organized as possible to reduce unnecessary delays.

Lastly, there is a legal requirement for organizations to include the interest of all stakeholders in their articles of associations and mission statements. This is typically an easy policy and documentation update that can take about five minutes to an hour depending on the complexities of a business. After this is all completed, it is time to pay the yearly certification fee based on annual revenues and celebrate your success in becoming a Certified B Corp!

Quick Tips & Tricks to Keep in Mind

  • Choose the appropriate assessment track carefully. The size, sector, and location of your business will influence the types of questions in each section of the assessment.

  • Pay close attention to the detail and scope of the questions to understand which answers best apply to your company. Some answers have slight modifications, so taking the test in a focused and quiet environment is best. Luckily, the assessment is saved as you progress, so feel free to divide it up over time.

  • Get a team together! Identify relevant teammates and data sources to help complete specific questions or sections. Unless you are a solo entrepreneur, this certification is not a one-person job.

  • Make use of the resources provided under each question, which include instructions and definitions. These links will ensure you have a clear understanding of the question and ability to provide the most accurate answer.

  • When estimating your answers, answer conservatively on current and past performance. Do not answer questions based on future plans or goals. If a question is not relevant to your company, answer Not Applicable, Don’t Know or None of the Above.

  • Record notes and rationale on why you selected an answer, so you will have the ability to recall details quickly about the answer. Everything is saved and stored as you go through the assessment, so take your time and use it as an organizational tool.

  • Ask existing B Corps and/or consultants for help!

Resources to Get Started

Now, that you know the basics, I suggest you give it a try. To support an inclusive and purposeful economy, it takes hard work and a true mental shift. Luckily, there are thousands of organizations that can help provide insight and expertise throughout your journey. Like B Lab, we won’t stop until all business is a force for good.

Have questions? Reach out anytime to jenny@pactthree.com!

Jenny Morgan
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