All About The B Corp Certification Requirements & Process
Are you looking to join a community of businesses that are using their power to make a positive impact on the world? If so, then becoming a B Corporation, or B Corp, may be the right fit for you! In this blog post, we'll cover everything you need to know about B Corps: what they are, what the requirements are, how to get certified, and why it might be beneficial for your business. You might have already heard and know what that is. But if you haven't, you might be thinking what exactly is a B Corp?
B Corp in a nutshell
A B Corporation is a for-profit company that has been certified by the non-profit organization B Lab to meet rigorous standards of social and environmental performance, accountability, and transparency. In other words, B Corps use business as a force for good.
Who's eligible for B Corp Certification
To be eligible for getting B Corp certified, a company must be a for-profit business that has been running for at least 12 months. B Corps can be any kind of for-profit business, no matter how big or small, but the way to become one varies.
SMEs, or companies that have similar corporate structures, tend to have quite a straightforward process for certification. For large companies that have more than $100 million annual revenue or that do business in more than one country may need to go through a more complicated certification process.
What are the B Corp requirements
There are three key requirements that companies must meet in order to become certified B Corporations:
1. Meet the minimum B Impact Assessment score of 80 points. 80 points means a company has met the highest standards of verified overall social and environmental performance, public transparency, and legal accountability, using established tools and criteria;
2. Companies must meet the legal structure requirements. This can be as simple as altering their articles of incorporation to embed a commitment to social and environmental impact. In some jurisdictions, such as British Columbia, companies may need to adopt benefit company status.
3. Pay the appropriate B Corp certification fees.
Not only do B Corps have to meet these requirements, but they also have to commit to recertifying every 3 years.
How to get B Corp certified
So how does a company go about becoming a B Corp? The first step is to take the B Impact Assessment. This assessment measures a company's impact on its workers, governance, community, and the environment. Once a company has taken the assessment, they will receive a score based on the positive practices they adhere to. The B Impact Assessment is all about rewarding impact scores and not what the company aspires to be.
In order to become certified, a company must first achieve a minimum score of 80 points. They must also provide documentation verifying their social and environmental performance. After that, they must sign the B Corporation Declaration of Interdependence and the B Corporations Terms of Use Agreement.
The certification and verification process length depends on the size and complexity of the company. This includes the time it takes to start the B Impact Assessment, meet the legal requirements, and let everyone know that you are a certified B Corp.
For small and medium-sized businesses, it would usually take about 9 to 12 months. The verification process will take longer for large or global companies that have many entities, or work in industries that are controversial.
Should you become B Corp certified
While becoming B Corp certified isn't for everyone, there sure to be many reasons why companies choose to become one. For some, it is a way to use business as a force for good. For others, it is a way to build social and environmental responsibility into their business model. And for others still, it is a way to differentiate themselves in the marketplace.
In addition to the feel-good factor of being a force for good in the world, there are also some very practical advantages to becoming a B Corporation. These include:
1. Increased credibility and visibility: B Corps must meet rigorous standards of social and environmental performance, accountability, and transparency. As such, becoming a B Corp can help increase your company's credibility and visibility.
2. Access to a community of like-minded businesses: When you become a B Corp, you join a community of over 5344 companies from 79 countries and 154 industries that are using business as a force for good. This community can provide valuable support, resources, and networking opportunities. Becoming a B Corp is like learning the secret knock or password… other certified companies that have run the gauntlet understand where you are and are more open to ‘being friends.’
3. Improved business operations: The B Impact Assessment can help you identify areas in which your company can improve its social and environmental performance. At Decade, we consider the B Impact Assessment the best impact business design tool out there.
4. Enhanced employee engagement and retention: B Corps must meet rigorous standards of social and environmental performance. As such, becoming a certified B Corp can help you attract and retain employees who are looking to work for companies that are making a positive impact on the world.
5. Increased customer loyalty: Customers are increasingly interested in doing business with companies that are socially and environmentally responsible. Becoming a B Corp can help you tap into this growing market.
6. Increased sales and investment: In recent years, there has been a growing trend of impact investing, with investors looking to put their money into companies that are making a positive impact on the world. As a B Corp, you will be better positioned to attract this type of investment.
7. Increased access to capital: There are a number of impact-focused investment funds and other financing opportunities available to B Corps.
In conclusion
Whether or not becoming a certified B Corp is right for your company, there is no doubt that it can be a valuable tool for businesses that are looking to use their power to make a positive impact on the world. If you're interested in becoming one and need B Corp certification consulting, be sure to check out what we do here at Decade Impact. We'll work with you to ensure that you meet all the requirements and that your company is ready to make a positive impact on the world. There is a lot in a name, at Decade we’re focused not only on helping companies achieve certification, but to identify opportunities to lead their industries!
Contact us today to get started!