B Corps Explained: What They Are and Why They Matter to You
B Corp certification is a badge indicating that a company upholds the highest levels of verified performance, accountability, and transparency across various areas such as employee benefits, charitable contributions, supply chain practices, and material sourcing. These companies are the gold standard of social impact. B Corps have chosen to join a worldwide movement toward viewing business as a means for positive change, reshaping the definition of “success” to use profits and expansion for a greater purpose. Their dedication lies in creating an economy that is inclusive and sustainable for all.
To achieve B Corp status, a company needs to prove their dedication to social and environmental responsibility and pass a B Impact Assessment (BIA). B Lab (a “nonprofit network transforming the global economy to benefit all people, communities, and the planet”) takes a holistic approach to business practices, not just addressing one specific social or environmental issue. Depending on the size and type of company, this involves providing documentation on their business model and details about their operations, structure, and various work processes. To be certified, a business makes a legal commitment by adjusting their corporate governance structure to prioritize all stakeholders, not just shareholders. Transparency is crucial—B Corps must allow public access to information about their performance according to B Lab’s standards.
For those embarking on a new business venture, there is the option to apply for Pending B Corp status. To meet the legal accountability requirement, your startup must incorporate stakeholder governance into its legal structure. Essentially, this means that your company is held responsible not just to shareholders but also to a wider range of stakeholders such as employees, customers, clients, and the communities in which you do business, as well as to the environment.
More and more businesses are prioritizing the B Corp certification process because it is in line with their values, and they strive to be socially responsible companies.
While going through the BIA, companies inevitably discover areas for improvement. This could involve formalizing their mission statement, creating a charitable-giving program, implementing a community service initiative, evaluating suppliers for diversity, and more. In addition, they typically improve their overall operations. Outdated employee handbooks are updated, long-discussed professional development plans are finally put into action, and complex carbon footprint calculations are completed.
The comprehensiveness of the BIA makes it a valuable tool for business owners to assess all aspects of their operations, set deliberate goals for their impact, and continually improve policies and processes. This leads to a more efficient and streamlined organization in the end.
B Corps show the strongest proof of social impact, proving my case that your community, social impact, and evidence matter. There are many companies moving to this certification—with many more already there. Here are three companies running B Corps and doing good in the world:
1. The Body Shop: You may know the Body Shop from frequent trips to the mall, but the retailer has attracted a dedicated customer base for its social responsibility and wide array of ethically sourced body care products. In 2019, the company became a certified B Corp.
2. Allbirds: Many people call Allbirds the “most comfortable shoes in the world,” a statement I wholeheartedly support. With each new collection, they continue to improve their use of natural materials. The classic sneakers and loungers are crafted from ZQ-certified merino wool that naturally wicks away moisture, regulates temperature, and resists odors. This material is also sustainably farmed with strict animal welfare standards and uses 60% less energy than synthetic fabrics.
3. Tentree: Tentree is a company that views itself as a forestry program but also happens to sell clothing. With every purchase made, the company plants 10 trees through carefully curated initiatives that aim to restore the earth’s forests and support communities in building sustainable local economies.
Becoming a certified B Corp means joining a global community that uses business as a tool for positive change. You will connect and collaborate with like-minded individuals and organizations who share your values and goals, both within your own community and around the world. This provides an opportunity to exchange ideas and learn from one another in practical ways, whether through the online networking platform known as the B Hive or through in-person meetings with other B Corps in your region, known as B Locals.
B Corps are at the forefront of advocating for economic system reform, and members reap incredible rewards. They establish a foundation of reliability with customers, communities, and suppliers; attract and retain talented employees; and draw in investors that align with their missions. To learn more about the B Corp movement, I encourage you to visit www.bcorporation.net.