B Corp certification is a designation conferred by B Lab, a global nonprofit organization, to for-profit corporations that meet high standards of verified performance, accountability, and transparency on factors from employee benefits and charitable giving to supply chain practices and input materials. To be granted and maintain certification, companies must receive a minimum score of 80 from an assessment of their social and environmental performance, integrate B Corp commitments to stakeholders into company governing documents, and pay an annual fee based on annual sales). Companies must re-certify every three years to retain B Corporation status). As of August 2023, there are 7,351 certified B Corporations across 161 industries in 92 countries).
B Corps are mission-driven companies that balance purpose and profit. They use their profits and growth to positively impact their stakeholders and the planet. B Corp certification is holistic, not exclusively focused on a single social or environmental issue. The certification process is rigorous and requires engaging teams and departments across a company. Verification involves documentation of a company’s business model and information about its operations, structure, and various work processes, as well as review of potential public complaints and possible site visits.
To become a certified B Corp, companies must apply to B Lab, providing documentation regarding their business practices. To be approved, a company has to achieve a score of at least 80 on B Lab’s Impact Assessment, which measures social and environmental performance, and pass its risk review. The certification process itself can be laborious and can take months or even years to complete.
In summary, B Corp certification is a designation conferred by B Lab to for-profit corporations that meet high standards of verified performance, accountability, and transparency on factors from employee benefits and charitable giving to supply chain practices and input materials. The certification process is rigorous and requires companies to achieve a minimum score of 80 on B Lab’s Impact Assessment, integrate B Corp commitments to stakeholders into company governing documents, and pay an annual fee based on annual sales. Companies must re-certify every three years to retain B Corporation status.
