March 13th, 2024
Have you ever spotted a curious ‘B’ icon nestled in the footer of a website and wondered what it was all about? Or, are you debating whether becoming a Certified B Corporation is something that your company should do?
Whatever introduced you to the movement, it’s clear by its recent growth that it’s here to stay. Being a B Corp is a badge of honour for the responsible brand.
About B Corps
B Corporations (B Corps for short) are organisations that are part of a wider network, which B Lab set up (are you starting to see the pattern yet?) to protect the planet – because… there’s no ‘Planet B’.
B Lab, now an international network of more than 5000 companies, was set up in 2006 (launching in Europe in 2015) by three friends in the US who wanted to see businesses operate for good.
The mission is simple: transform the global economy to become more ‘inclusive, equitable, and regenerative’. Implementing that mission is not so simple.
The commitment required makes B Corps stand out from other socially conscious movements. It’s very trendy for companies to claim to be green and good, but far less common for them to back it up with actions. That’s what B Lab is about, and how you know a certified B Corp is making a serious commitment to the cause.
What does being a B Corp mean for businesses?
This is not a marketing strategy – it’s a genuine statement of intent to lead the charge towards a ‘stakeholder-driven model’ of business. There’s no greenwashing to be seen here.
When a company becomes B Corporation Certified, it plays its part in leading the charge of a socially conscious movement. This is rooted in shaping a better world for tomorrow, but it’s not without its benefits for the company.
Consumers aren’t stupid. More often than not, they’ll see right through an inauthentic campaign to come across as ethical. The bottom line is that it’s too easy for corporations to say they’re for good and promise sustainability with their image but operate very differently.
Speaking of bottom lines, the triple bottom line is a staple of the B Corp model. For the uninitiated, triple bottom line is a business term derived from the traditional meaning of bottom line (profit) to include two moral bottom lines (the planet and people).
Being a B Corp, for a business, is to deliver on those promises. It puts meaning behind the mission statements and places social and environmental goals on the pedestal that has been ruled by pure profit for far too long.
The price for showing customers, employees, suppliers, and other stakeholders that your company is dedicated to a more responsible model is a demanding one. Companies have to satisfy rigorous standards of ‘social and environmental performance, accountability, and transparency’.
The process is no mean feat. It takes around six to eight months for smaller businesses but varies by the size of the company, it has to be recertified every three years and comes at the cost of between $500 and $50,000.
Okay, so how does a company become a B Corp?
It’s not supposed to be easy: if it were, then it wouldn’t mean anything. The B Corp logo is akin to the Fair Trade stamp you sometimes see on food items. And you need to earn this stamp of approval.
To earn certification, a company must show their dedication to an ‘inclusive, equitable, and regenerative economy’. This covers everything from employee benefits to charity policy to supply chain practices.
B Lab’s process is tailored to each type of business, from under $5 million annual revenue and less than 50 employees right up to those that bring in more than $5 billion annually. Doing this makes for more accurate measurement of compliance with B Lab’s high standards.
Companies also need to make a legal commitment to be structurally accountable to their stakeholders and share key metrics of their business performance with B Lab so they can be measured and shared with the public.
Dedicated pathways to certification make it possible for any company to become a B Corp, as long as they invest in the ideas that drive the movement.
Is it right for my company?
Great question. Well, are you ready to deliver on the collective action to show the world that business can be about good as well as profit?
Becoming a B Corp shows your stakeholders what your company is about. Conscious consumers look out for the logo and, if they want to support responsible brands, will choose you over your competitor if they see you back up that promise.
All businesses have to jump through hoops; these are just hoops that want to make the corporate world a better place.
Written by Jack Morris, Writer.
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