Becoming a B-Corp
If you’re a business owner who believes social and environmental responsibility are just as important as profit, or have already structured your business this way but wish to communicate it effectively to consumers and others in the industry, then considering formalizing your sustainability commitments through sustainability frameworks or certifications is a good idea.
Specifically, official certification is easily recognizable to consumers, and more specifically, can help you stand out from the greenwashing. Business owners typically find that by becoming a certified B-Corp, they can clearly articulate their commitment to creating a positive environmental, social and governance impact (ESG). According to a Cone Communications CSR report, 92% of consumers have a more positive image of a sustainable and socially responsible company and 87% would be more likely to trust that company. Externally, it’s a signal to your customers and investors, internally, it’s a roadmap for continuous improvement.
Before I jump into what it takes, the first step is to actually decide whether becoming a B-Corp is right for you at all.
Some companies achieve consumer recognition by simply applying to the lengthy process (sometimes, with no intention of achieving it), simply to indicate to consumers on their websites and customer outreach that by announcing they are “on the way” to being certified, or have been “nominated”. Those companies benefit from the recognition of their attention to impact from consumers without the actual certification. Other companies also articulate their commitment through other non-certification avenues, like lobbying mention of their work through conscious magazines (Forbes for instance, identifies companies for their triple bottom line approach to business), or through the communication of a company’s adherence to other standards (Green Business Bureau, Public Benefit Corporation Certification, ISO standards, GHG protocols, the GRI, PRI, etc). In a nutshell, its value can be achieved without the certification.
While there are ways to demonstrate your sustainable business aside from certification, B-Corp certification may well be the way to go for you. The question that remains is, what is the process like? How long does it take? What information do I have to provide? How established do I have to be?
B Certification is handled through a lengthy assessment process by B Lab, a non-profit corporation that certifies B Corporations. The scope of the program covers 5 major areas: Governance, Workers, Community, Environment, and Customers. The B Corp certification assesses daily operations and business models, and how they are designed to create positive impact. Resources are required to meet the standards and applications require that companies verify compliance and complete internal audits. B Lab provides an assessment as a first step, so companies considering B Corp certification can self-assess whether they qualify or identify current gaps.
Regardless of whether you decide to pursue certification or not, Companies shouldn’t overlook the importance of the process of B Corp certification in business planning. The nearly 200 questions you are asked in the B Impact Assessment (BIA) alone is a powerful management tool.
