Have you seen this B Corp Certification logo on your favorite shops and products?
Some of you may know what I'm talking about. But if not, it's worth checking out.
There has been a movement in the business community in recent years, particularly in the wake of the Covid-19 pandemic. The majority of companies are transforming their businesses to bring about social and environmental change.
Businesses are integrating their efforts to foster positive, just, and sustainable communities. This approach is supported by various recent movements and certifications such as: B. B Corp certification or B Corporation.
In today's guide, we will learn all about the B Corp certification, its benefits and other aspects. Let's take a look at what's ahead:
- What is B Corp?
- Understand B Corp certification
- Understand B Labs
- Difference between B Corp certification and B Corporation
- B Corp Certification Requirements
- How can your company become B Corp certified?
- Benefits of a B Corp certification
- Disadvantages of B Corp certification
- Why do companies seek B Corp certification?
- Legal Requirements Related to B Corp Certification
- Things to Consider About B Corp Certification
- Why Should You Support B Corp Certification?
- B Corp certification support
- Completion of the B-Corp assessment
- Submit B-Corp assessment
- Qualifying the B Lab assessment
- B Corp is the right choice for your business?
- Frequently asked questions (FAQs) related to B Corps certification
- How can Deskera help you?
Let's dive in!
What is B Corp?
Certified B Corps (Certified B CorporationsTM) is a for-profit corporation, recognized by most states, and driven by both mission and profit. These companies adhere to high standards in terms of ecological and social performance and responsibility criteria.
Businesses must demonstrate that their company offers a solution to global problems such as climate change, income inequality, social unrest and corporate transparency.
Companies seeking certification must go through B Lab's rigorous and thorough application process.
Understand B Corp certification
The B Corp certification enables new businesses to be purpose driven and established businesses to expand responsibly.
Additionally, B-Corp corporations, such as NGOs and 501(c)(3) organizations, emphasize public interest groups over private shareholders, but unlike non-profit organizations, are taxed like any corporation.
According to the Certified B Corporation website, B Corp organizations "use revenue and growth as a means to a larger goal: good impact for their employees, communities and the environment."
In its declaration of interdependence, the B Corp movement outlines a set of values. B Businesses and leaders of the purpose-driven global economy believe, according to the statement:
- B Corps has to be the change we want to see in the world.
- Businesses should strive to do no harm and help everyone through their products, practices, and revenue.
- All thatbusinessshould be conducted as if society and places mattered.
- That B Corps operates with the understanding that we are all interdependent and therefore responsible for one another and for future generations.
Understand B Labs
B Lab is a non-profit organization that evaluates how a company contributes to a social benefit that is not limited to just financial gains, but also to community benefits.
Aside from that,B-Laborbelieves that companies should affect more than just shareholders' wallets and that they should ultimately define success in terms of the social community, the environment and employees.
The five requirements that define a Certified B Corporation according to B Lab are:
Accountability:
The influence of the company on all shareholders is required of the directors.
Perfomance:
Organizations must pass the B-Impact assessment test with a passing score and re-certify every two years.
Cost:
The cost of certification varies based on the amount of revenue generated.
Transparency:
Certified B corporations are required to prepare and publish a report on their social and environmental performance, which is evaluated according to neutral third-party criteria.
Availability:
Any company, regardless of the form of business entity or where it is incorporated, can become a Certified B Corporation.
Companies that want to be classified as B corporations must achieve at least a B in the B Impact Assessment. This assessment also helps determine the company's impact on its customers, employees, community and the environment.
In addition, they should create their B Impact Report - a summary of the assessment - on the Certified B Corporation portal. The B Lab, a governing body, is responsible for all of this.
Becoming a B corporation allows companies to maintain their social purpose while scaling their operations. Because they are for-profit, businesses can expand and raise funds while maintaining a socially responsible standard.
Interestingly, the number of licensed B Corps is steadily increasing. Over 3,000 companies from 150 industries and 71 countries are currently pursuing B Corp certification.
Different types of businesses require different certifications. The four categories are as follows:
- Multinational corporations and public corporations
- Start-ups
- companies that are connected to each other
- Certification at international level
Difference between B Corp certification and B Corporation
The terms Advantage Corporation and B Corporation are not interchangeable (although they sound exactly the same). The capitalization is the only difference.
To add to the confusion, B Corp certified firms are referred to as "B Corps," while Benefit Corporations are referred to as "B Corporations." Pay attention to upper and lower case letters.
What are you?
B Corp certification | B-Corporation |
A socially responsible company certified by B Lab. | A legal structure |
B Corp Certification:B Corp is not a legal entity but a company certified by B Lab, a third party organization. Similar to Fairtrade certification, certification certifies that a company meets a range of environmental and social standards.
B-Corporation:A relief society, sometimes known as a B corporation, is a legal entity that exists to help others. Although not every state recognizes B corporations as business organizations, there are now 36 states that do so as of October 2019. B corporations, on the other hand, enjoy no special tax treatment at the federal level.
Benefit corporations and B corps are undoubtedly honorable designations. However, there are some basic similarities and differences between them.
- A B Corp certification is completely optional and can be revoked at any time. The restructuring of the company into a benefit corporation, on the other hand, requires permanent adjustments
- Customers, employees and investors value both types of certification
- Both certifications are excellent ways for a company to differentiate itself from the competition and demonstrate a genuine commitment to contributing to the community
- Both B Corps and Benefit Corporations are alternatives to the traditional 501(c)(3) tax-exempt organization.
It is important to remember that benefit corporations have not yet been licensed in every state. Several states are currently considering legislation in this area.
Whether or not a company chooses to be certified, the Benefit Corporation form is important on its own. This structure corresponds in many respects to the B-Corp certifications.
Perhaps most importantly, using the Benefit Corporation legal framework is the best approach for a company to ensure it meets the regulatory requirements for B Corp certification.
Remember:
Even the smallest but most powerful sole proprietor can become a B Corp certified business.
- All you need is a for-profit business
- It has been in operation for at least a year
If you've been in business for less than a year, you can apply for Pending B Corp status to show investors and customers that you're serious about your business.
Beyond that, the test remains the same, but you'll be asked to guess your answers and given a distinctive icon to indicate your results are pending.
B Corp Certification Requirements
If you are starting a business or converting an existing one to a B Corporation and are seeking B Corp certification.
Check the following prerequisites that you need to consider for this:
The B Impact Assessment or BIA must be completed by an entity. Over 50,000 companies use the BIA, a completely free and online measurement and evaluation paradigm for non-financial data metrics.
In addition, five aspects of a company are examined: corporate governance, employees, community, environment and customers.
A sixth category of company disclosures outlines any potentially sensitive sectors, practices, fines or sanctions a company may have that are not specifically included in the assessment elsewhere.
After completing the B-impact assessment, companies must go through a multi-step authentication process to ensure that all data and answers provided are correct. Each review must achieve at least 80 points to be certified.
B Lab also conducts a background check of the company. For company names, brands, executives/founders, and other relevant issues, background checks involve examination of public documents, news sources, and search engines.
B Lab publishes a public page with the B Impact Report overview of a company's B Impact Assessment scores by section once it has passed certification.
In addition, all certified B Corps must pay an annual fee to B Lab to help maintain the organization. It is staggered based on sales.
Once you're all set, fill out and sign a Term Sheet to legitimize your certification.
Note:Passing the test is a difficult task as it consists of over 200 points. Once you pass, you will be held to high ethical standards.
You must recertify every two years as standards change. During this time, organizations are subject to third-party audits.
How can your company become B Corp certified?
Earning B Corp certification requires two important components: significant impact and legal corporate governance reform.
impact assessment
In order to assess and assess their impact on society and the environment, companies conduct an impact assessment.
This questionnaire is designed for specific businesses such as furniture, food and fashion. And it also includes questions about government, workers, community, environment and customers.
To be certified, an organization must achieve an average score of 80 across all zones.
Governance-Reform
Corporations must change their articles of association or adopt a corporate form that explicitly requires all stakeholders, not just shareholders, to be considered in decision-making.
The well-being of employees, customers, suppliers and the environmental footprint of a company are factors to consider. This change in the law can be implemented immediately or within 2 years after certification.
pay fees
You have to pay an annual fee for the company certification if you pass it. Annual costs can range from $500 to $50,000 depending on your sales volume.
The certification is valid for a period of two years. You must retake the test after this period if you wish to be recertified. You must re-certify if the owner who participated in the program leaves the company.
Benefits of a B Corp certification
Below we have discussed some important benefits or benefits of a B Corp certification. Let's study:
Flexibility in corporate governance
You can pursue broader management ambitions by becoming a B Corp. If you run a traditional for-profit company, your investors want you to focus only on shareholder value. This can make you a slave to your winnings.
With a B Corp, your investors, employees and consumers will know right away that your ambitions are about more than just making money. This gives you more freedom to run your business the way you want and focus on the outcomes that matter most to your business goal.
Recruiting and retaining top employees
B Corp certification shows a prospective employee that the company is committed to a positive work environment and culture.
Millennials will make up 75% of the global workforce by 2025, according to the Deloitte Millennial Survey. Additionally, half of the millennials surveyed would like to work for a company that practices ethical business practices.
B Corporation certification shows potential employees that you are committed to making a positive impact on the planet. The more connected you are to their values as an employer, the more attractive you are.
Part of the impact assessment also looks at how companies treat their employees in terms of pay, benefits, training and ownership options. Impact assessment B includes the following questions:
- How does your company's compensation structure compare to other companies in your industry?
- What is the minimum amount of paid vacation days and paid holidays that full-time employees are entitled to per year?
- Do you have a committee to help you keep track of OSHA standards and programs?
B Corps attract elite talent, particularly among individuals who seek meaning in their work.
Because of the company's reputation as a fantastic place to work, certification helps promote and legitimize an employee-centric culture that attracts exceptional candidates.
Instead of hiring people who are just looking for a job, hire people who are passionate about what you do. Companies with engaged employees are more profitable and twice as successful as companies with disengaged employees.
Connect with like-minded companies and investors
When you become a recognized B Corp, you join a global network of over 2,600 companies that share your values.
In addition, B Lab offers networking events for B Corps, both in person and online. If you are just starting out in business and need support, partners, suppliers or anything else, this can be very beneficial.
In addition, many investors are attracted to companies that are socially responsible. While investors genuinely want you to have a lucrative business plan, others may want to invest in something that benefits the world. It is possible that your B Corp certification will help you succeed.
Operational risk and benchmarking
Financial metrics are useful for measurement, but they only provide short-term information about a company's profitability.
Non-financial metrics provide a far more detailed picture of a company's overall health and give you a better understanding of the multiple threats it faces.
Economists and business experts are increasingly considering ESG (environmental, social, and governance) issues as one of the top five risks facing any organization. In addition, these risks can be identified and mitigated through certification.
Frameworks like the B Corp certification allow a business owner to assess and measure a variety of non-financial measures that were previously difficult to quantify.
Real trustworthiness
If you're a B Corporation, you can't just say you're environmentally friendly or socially involved; you have to show it
As part of the certification process, you must demonstrate through rigorous documentation how you deliver positive benefits to people and the environment.
It further means that consumers and other businesses can be assured that B Corp companies are doing more than claiming to improve their communities. You are doing the right thing.
Differentiation is key in a competitive marketplace
Consumers are increasingly interested in purchasing products and services from companies committed to social and environmental causes.
According to a 2019 Deloitte survey, more than 80% of consumers would be willing to pay more if a company raised its prices to be more environmentally and socially responsible, or offered higher compensation to its employees.
Conscious consumer wishes are already having an economic impact on the sale of consumer goods, as products with a sustainability component are becoming increasingly popular.
Disadvantages of B Corp certification
Below are some of the biggest downsides of being a B Corp certified company. Let's start:
Zero tax breaks
There are no federal tax incentives for benefit corporations or recognized B Corps.
If you are a B Corp certified benefit corporation, you can choose to be B Corp taxedS corpor a C Corp. These are the only two tax structures that you can access because a utility company is a corporation.
Your tax regime remains the same if you are another organization that is B Corp certified.
Every action must be considered
As a B Corp, you have a legal obligation to think about how your actions may affect your stakeholders.
Let's assume you could switch to cheaper packaging material. The alternative, on the other hand, is not environmentally friendly and the manufacturing process would expose your staff to hazardous chemicals. As a recognized B Corp, you have a legal obligation to miss this opportunity.
What happens if you don't continue? Employees and shareholders can sue you and your board if you fail to meet your company's social goals.
Reports are published
Once certified as a B Corp, you will have a public profile on the B Lab website with your company's Impact Score. This is a requirement of B Lab's public transparency policy.
Your score and details of how you performed in the sub-themes are listed for each area of the impact assessment. Viewers can check your rank in the following categories under your community total score:
- Job creation
- inclusion and diversity
- Participation in civic life and charitable donations
- Local community participation
- Product suppliers, distributors and manufacturers
If you are successful in these areas, it is an excellent advertisement for your business. However, falling short can be a disadvantage.
Why do companies seek B Corp certification?
The organization that certifies B Corporations emphasizes the importance of the private sector coming together and taking action. B Corps companies find profitable answers to the problems the world faces through innovation.
According to Andy Fyfe, senior manager of growth and enablement at B Labs, “Rather than just focus on building the best products for profit, we can innovate to find profitable solutions to the problems we face are."
There are many reasons for certifying your company and the pool of certified B Corps. Fyfe, on the other hand, lists three of the most commonly cited reasons:
Businesses are keen to join the global network that B Corps is building
The collective voice - and action - of the community is being used to create a regenerative rather than extractive economy.
For example, several North American certified B Corporations formed the B Corp Climate Action Collective in February, a collection of dedicated B Corps dedicated to tackling climate change.
"We are demonstrating the collective ability of our companies to transform commerce, build an inclusive society and regenerate the environment," the organization said in a statement.
"We commit to taking meaningful action on climate resilience, using advocacy, cross-sector collaboration, business action and capital markets to reduce carbon emissions and improve global well-being."
Employees start asking about it
According to research, more and more employees, especially millennials, want to work for a company with a purpose. Additionally, there is evidence that a company's mission is more effective when people believe in it.
B-Corporation certification separates decent companies from others who are just skilled marketers
B Corps must commit to activities that have a significant impact, rather than relying on fraudulent practices like greenwashing (rather than just marketing themselves as such). This can help develop consumer confidence.
Legal Requirements Related to B Corp Certification
The legal criteria differ from state to state. The legal requirement ensures that your company and all employees comply with the triple bottom line obligation.
In practice, you must sign agreements confirming that you will uphold B Corp's ideals. The legal requirements are set out in detail by B Lab. You also have to pay a fee to get certified and you should resubmit every two years.
Things to Consider About B Corp Certification
In the context of B Corp, the great effort pays off spectacularly. You will receive the seal of approval.
Regardless of whether a company is certified as a B corporation or not, it is difficult to make it more sustainable. Every worker and manager must make an effort and participate.
Money, time and continued motivation are necessary. Additionally, a guided assessment with a clear end goal can often make implementation easier.
It's completely free to take the assessment, and it can help you figure out which key initiatives to prioritize or where to develop.
Although certification comes at a price, hundreds of companies use impact assessment to track their progress and success.
Why Should You Support B Corp Certification?
Below we have listed some key reasons why you should support the B Corp certification. Let's look at this:
positive missions
When it comes to B Corps, rest assured that their goal is to make the world a better place. They perform well in areas such as environmental, social and more.
You know a B Corp is actively practicing what they promote because they publish annual impact reports, and by supporting them you are contributing to these worthy causes.
Support your values
There are nearly 2,100 recognized B Corps, meaning you can support a variety of businesses that do more than just sell goods for revenue. You can count each purchase by using the B Corp directory.
Better investment opportunities
Nonprofits are no longer the only ones investing money and energy in their people, the environment and our communities.
Even public companies can become B Corps, giving you more ways to invest your money. As more people become aware of B Corps, more companies will be encouraged to become certified.
better community
Employee happiness equates to happy individuals, which in turn equates to happy communities. In addition, employee dissatisfaction and high turnover rates can cost companies millions of dollars.
Instead, like so many other B Corp certified companies, we are dedicated to the health and happiness of our employees. B Corp certification.
environmental Protection
B Lab today enables buyers to find companies that support causes that matter. They know their promises are worth more than just incorporating them into their core online mission, as the certification process holds each company accountable with annual assessments.
B Corps is committed to using organic, local ingredients, reducing their environmental impact and giving back to the environment what they take.
B Corp certification support
The for-profit companies should really consider sustainability, environmental and social issues. Additionally, you can always vote for them to ensure relevant goals and values are recognized.
By searching this database, you can find out which companies are B Corps and learn a lot about how they contribute to their community and environment. In addition, you can always search for the certified B Corp logo.
Completion of the B-Corp assessment
Surely you have doubts about the legality, rating and rating
Although at first it may seem like a big obstacle. However, if you are looking for the best approach for your business that will benefit the environment and your employees, certification is worth considering.
Submit B-Corp assessment
The B Corp Assessment is the first phase of the process. The impact assessment will ask you questions about your business in five areas:
- Customers
- guide
- Surroundings
- community
- workforce
You will be asked to answer a series of questions that will result in a score on the assessment.
Plan on failure if you expect to complete the assessment on the first try. However, we recommend that new businesses allocate an hour for each "part" and then break the parts into days to complete them.
Qualifying the B Lab assessment
To qualify for B Lab, you must have at least 80 points. Remember that B Lab requires 80 score points to consider your application.
Therefore, you must be careful when filling in the spaces and collecting data and information. Once you have reached 80 points, you can submit your rating to B Lab for review.
B Corp is the right choice for your business?
For some companies, becoming a benefits company is not the best option. You would be wrong if you think that you get a tax advantage for being environmentally responsible. B companies must pay the same taxes as for-profit companies.
Before beginning the process of becoming a B corporation, check to see if the certification is accessible in your state. Currently, 35 states have enacted a utility law, and another five are considering it.
If you have started or plan to start a business for the common good, starting a non-profit corporation is the right strategy to ensure you are bound by high ethical standards. You can stick to your goal, recruit excellent talent and still make money.
Frequently asked questions (FAQs) related to B Corps certification
Below we have discussed some of the important questions that might come to your mind. We have sorted these for you. Let's clear doubts regarding B Corp:
Question 1: How long does the certification take?
Filling out the BIA can take some time. Capacity and needed improvements are two elements that can affect how long it takes a company to complete a project.
First, low-capacity organizations take longer to complete projects and often require outside help. Second, organizations that need to make numerous adjustments to achieve the required 80 points for certification typically take longer than organizations that already have a high score based on beneficial practices.
Due to the increasing demand for certification, it can take up to 5-6 months for B Lab to start and complete the verification process once the BIA is complete and ready for assessment.
Question 2: What is the period of time for the certification?
B Corporation certification is valid for three years. A company must recertify every three years by re-completing the BIA and submitting it to B Lab for approval.
Performance standards are also modified every three years. As a result, a company will always recertify to the latest standards. As a B Corp, you are committed to continuous improvement.
Question 3: What are the indicators that a company is a Certified B Corporation?
B Corporation certification can be easily found on a brand's website or on the product itself. The certification mark is usually located at the bottom of a company's main page.
Question 4: How much does the B Corp certification cost?
Annual fees to B Lab are calculated based on a company's annual revenue. Their fees can be viewed at https://bcorporation.net/certification.
Question 5: Is my organization eligible for B Corp certification?
The B Corp certification is extremely comprehensive, yet remains flexible, allowing individual owners, affiliates of multinational organizations and everyone in between to certify. Over 150 industries are represented by certified B Corps in 71 countries.
Question 6: Can an LLC become a B Corp?
And!LLCsmust include a purpose clause in their membership agreement in addition to meeting the performance benchmarks. For more information, see the B Lab Legal Requirements Tool.
Question 7: My company is already a C or S corporation. Should I become a B Corporation?
B Corps and Benefit Corporations are two different entities that are often misunderstood. A benefit corporation, like a C Corp or an S Corp, is a legal entity.
To meet the legal criteria for certification, S Corps and C Corps must become Benefit Corporations in addition to meeting performance benchmarks.
Question 8: My company is still under construction. When is the best time to start the procedure?
Startupshave the benefit of being able to start the process early and set the right policies and procedures in place first, rather than having to make changes later. As a result, you build a stronger organization that will help you maximize your effectiveness.
Question 9: How does being a B Corp affect my taxes?
As a third-party standard, B Corp certification has no tax implications. Benefit Corporation is a legal designation, not a recognized tax statusIRS.
As an S Corp, C Corp, LLC, or sole proprietor, you can still file taxes. This is something aAccountantor a B Corp CPA should be able to assist with this.
Question 10: Does the fact that a company is not a certified B Corp mean it is not socially responsible for social and environmental change?
No, there are many socially responsible small businesses that are not B Corp certified. If you don't see the B Corp certification, you should also do a thorough search yourself to learn more about the company's policies.
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Last takeaways
This comprehensive guide has come to an end. We've put together a summary of the key points from this guide for your future reference. Let's start
- Certified B Corps (Certified B CorporationsTM) is a for-profit corporation, recognized by most states, and driven by both mission and profit
- B Lab is a non-profit organization that evaluates how a company contributes to a social benefit that is not limited to just financial gains, but also to community benefits
- Becoming a B corporation allows companies to maintain their social purpose while scaling their operations. Because they are for-profit, businesses can expand and raise funds while maintaining a socially responsible standard
- The terms Advantage Corporation and B Corporation are not interchangeable (although they sound exactly the same). The capitalization is the only difference
- After completing the B-impact assessment, companies must go through a multi-step authentication process to ensure that all data and answers provided are correct. Each review must achieve at least 80 points to be certified
- You have to pay an annual fee for the company certification if you pass it. Annual costs can range from $500 to $50,000 depending on your sales volume
- Part of the impact assessment also looks at how companies treat their employees in terms of pay, benefits, training and ownership options
- Once certified as a B Corp, you will have a public profile on the B Lab website with your company's Impact Score. This is a requirement of B Lab's public transparency policy
- It's completely free to take the assessment, and it can help you figure out which key initiatives to prioritize or where to develop
- A relief society, sometimes known as a B corporation, is a legal entity that exists to help others
- Before beginning the process of becoming a B corporation, check to see if the certification is accessible in your state. Currently, 35 states have enacted a utility bill, and another five are considering it
- B Corporation certification is valid for three years. A company must recertify every three years by re-completing the BIA and submitting it to B Lab for approval
- B Corp certification has no tax implications. Benefit Corporation is a legal designation, not an IRS recognized tax status
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FAQs
What are the disadvantages of being a certified B Corporation? ›
- There are no tax breaks. For both benefit corporations and certified B Corps, there are no federal tax breaks. ...
- You need to consider the non-financial impact of your actions. ...
- You're open to ongoing scrutiny.
B Corp Certification is a designation that a business is meeting high standards of verified performance, accountability, and transparency on factors from employee benefits and charitable giving to supply chain practices and input materials.
How does being B Corp change what the company does? ›Becoming a B corp allows companies to hold on to their social mission, while allowing them to scale the business. Since they are for-profit, the company can grow and raise money though still be held to a socially responsible standard.
Is B Corp certification good? ›A company's' overall impact on its workers, customers, community, and the environment are graded against the B Impact Assessment. 'Certified B Corp' is now one of the most well-known ethical blue ribbons. Ethical consumers can even use a 'B Corp' filter when shopping online at Waitrose and Boots.
Do B Corps get tax breaks? ›Though there are no tax benefits for B Corp certified companies, the status does often improve a company's perceived value. It can also attract potential customers, if the company includes the designation in its marketing.
What are the benefits of attaining B Corp certification? ›- Run a better business that aligns with your values. ...
- Join a global community of changemakers. ...
- Support the movement. ...
- Attract and engage talent. ...
- Tap professional development opportunities for employees. ...
- Get marketing collateral and assets.
Being a B Corp means that prospective employees—just like consumers and business partners—will know you're honestly committed to creating real environmental and/or societal benefits. This can help you attract employees who are already committed to issues of sustainability and/or social change.
How long is B Corp certification valid? ›B Corp Certification lasts for three years. After three years, a company must recertify by completing the BIA again and submitting it for review to B Lab. The performance standards also get updated every three years.
What is a B Corp certified business? ›What are Certified B Corporations? Certified B Corporations (or B Corps) are businesses that meet the highest standards of verified social and environmental performance, and public transparency.
Does the IRS recognize B Corporations? ›As I've written about before, all corporations are taxed as C-corporations by default, but they can elect to be taxed as S-corps. The “C” and the “S” are tax terms. So, a B-corporation can elect to be taxed as a C-corp or an S-corp, same as any other corporation.
How the B Lab certification process works? ›
To obtain a B Corporation certification, a company first completes an online assessment. Companies that earn a minimum score of 80 out of 200 points undergo an assessment review process, essentially a conference call verifying the claims made in their assessment.
Is Nike B Corp certified? ›How does the “B” designation change that? Well, there's a difference between Nike using recycled materials to create its attire and Nike becoming a Certified B Corporation or Benefit Corporation.
What is the highest scoring B Corp? ›If sustainable undies haven't caught your attention before, they will now. In November 2021, Oxford-based brand Y.O.U Underwear certified as B Corp with an outstanding 160.5 points in the B Impact Assessment, the highest score in the UK.
What is the highest B Corp score? ›To certify as a B Corp, a company needs to undergo the B Impact Assessment and receive a score of 80+ out of around 250.
Is B Corp a big deal? ›world all certified companies were used to determine the top ethical businesses. B Corps are declared as meeting the highest standard of social and environmental performance. The overall score takes into account a variety of things including, governance, workers, community, environment and customers.
Do B Corps have double taxation? ›B Corporation Taxes
In addition to the corporate tax, dividends to shareholders are subject to individual income taxes, meaning that any money paid out as dividends is taxed twice. This is commonly referred to as double taxation.
One of the challenges that you are likely to face is maintaining momentum, retaining engagement and support; you need everyone on board and fully committed to a sustainable business model in order to succeed. Achieving and maintaining your B Corp Certification is a serious commitment.
Do B Corps generate profit? ›B Corps are for profit companies that meet the highest standards of social and environmental performance, transparency, and accountability. B Corps use the power of business to do more than seek profit. They use their profits and growth to positively impact their stakeholders — and the planet.
How often should I recertify my B Corp? ›The B Corp movement is built on the principle of continuous improvement. To remain in the community, B Corps must recertify every three years — and meet the requirements of a continuously evolving B Impact Assessment. To stay above the 80-point minimum score, companies are driven to do more to improve their practices.
What is the difference between benefit corporation and B Corp certification? ›One key difference is that benefit corporations self-report their performance while B Corps use the free B Impact Assessment to attain certification and are required to perform evaluations bi-annually to keep their certification. A company can be both a Certified B Corp and benefit corporation.
What is unique of a B Corp? ›
B Corps are certified to meet comprehensive standards of social and environmental performance, accountability and transparency. It's real, it's rigorous, and most importantly, you can trust it. Every 2 years Prosperity Candle goes through the certification process and it's challenging – as it should be.
Can B Corp certification be revoked? ›If the adjusted score falls below the minimum 80 required for certification, B Lab provides a 90-day cure period along with score improvement recommendations. If this process reveals that a company has materially misrepresented aspects of their business, the company's B Corporation certification will be revoked.
How many certified B Corps are there? ›How many Certified B Corps are there around the world? There are currently over 4000 Certified B Corporations in more than 70 countries and over 150 industries. Head to our homepage to see the latest statistics about the B Corp Movement.
How long does it take to get B certified? ›Small to medium sized companies should expect a wait time of 6-8 months. Large multinationals, companies with many related entities, or companies operating in controversial industries should expect a longer verification process.
What states recognize B Corp? ›- West Virginia.
- Washington state - referred to as a "social benefit corporation."
- Virginia.
- Vermont.
- Utah.
- Tennessee.
- South Carolina.
- Rhode Island.
There are only around 3,500 Certified B Corporations, including Lemonade, Ben & Jerry's, Warby Parker, and Patagonia. The process grades brands on a points system that measures five key areas: Governance, Workers, Environment, Customers, and Community.
How does IRS know who owns a company? ›If a business is operated as a corporation, it must apply to the state's secretary of state for an Employer Identification Number. The EIN is unique to each corporation and identifies the corporation on its tax returns. The IRS can trace any document containing an EIN back to the originating corporation.
Is B Corp a legal status? ›B Corp certification is available to a variety of legal entities such as corporations, limited liability companies, partnerships, sole proprietorships, etc., whereas benefits corporations, including PBCs, are companies incorporated as corporations (i.e., not limited liability companies or partnerships).
Can I use the B Corp logo? ›The B Corp mark can only be used by companies certified by B Lab, providing verification, transparency and responsibility. B Corps and their brands that have been verified and approved by B Lab may use the seal on their websites, packaging, advertising, and marketing.
What is the B Corp process? ›To be a B Corp, businesses must go through a rigorous certification process which measures their entire social and environmental performance. And once they're certified, they must sign a legal agreement to confirm their board members will always consider the impact on their stakeholders when making decisions.
How many questions are in the B Corp assessment? ›
Using data from the previous 12 months, you will answer approximately 200 questions within the assessment, with responses verified by B Lab's independent Standards Team. A minimum score of 80 points is needed to submit your assessment to certify as B Corp.
What are the 4p focuses of B Corporations? ›Created by Jerome McCarthy in 1960, the 4Ps encourages a focus on Product, Price, Promotion and Place.
Is Amazon a certified B Corp? ›End of dialog window. Certified B Corporation: we are committed to maintaining our b corp certification through ongoing social and environmental performance, public transparency, and legal accountability to balance profit and purpose.
Which large companies are B Corps? ›| Rank | Company Name | Annual search volume |
|---|---|---|
| 1 | Ben & Jerry's | 10,281,000 |
| 2 | BrewDog | 4,688,000 |
| 3 | Thrive Market | 3,669,000 |
| 4 | ButcherBox | 2,737,000 |
This makes Lulu the first online publishing company to achieve B Corp status. This prestigious designation goes to a select few companies.
What is the average B Corp score? ›Overall B Impact Score. Based on the B Impact assessment, Advanced Metrics earned an overall score of 97.6. The median score for ordinary businesses who complete the assessment is currently 50.9.
What state has the most B Corps? ›The U.S. States With the Most B Corporations
California took the top spot as the state with the most B Corporations overall, at 320 total certified businesses. California is home to a multitude of companies that are doing their part to remain environmentally conscious and ethically sourced.
- Allbirds. 4.39K subscribers. Allbirds: From Wool to Shoe. ...
- Cotopaxi. 10.1K subscribers. ...
- Ethique. 1.61K subscribers. ...
- Leesa Sleep. 658 subscribers. ...
- Athleta. 11.9K subscribers. ...
- Uncommon Goods. 3.4K subscribers. ...
- Coursera. 211K subscribers. ...
- graze UK. 346 subscribers.
All Certified B Corps share their B Impact Assessment overall scores and category scores on their public profiles on B Lab Global's website.
Why are B Corps called B Corp? ›It was originally derived from “benefit corporation”, a type of US corporate structure, but B Corp means many things to many people. We spoke to Kate Sandle, Community Manager for B Corp UK, whose favourite interpretation of B Corp comes from Ghandi – “Be the change you wish to see in the world”.
Do consumers care about B Corp? ›
From the consumer's perspective, knowing whether a company is a B Corp or not could be a powerful game-changer in their purchasing habits. As opposed to simply evaluating a product or a purchase, the B Corp certification gives customers a 360-degree view of a company's impact.
What are the pros and cons of B Corporation status? ›- You might have an edge when it comes to hiring talent. ...
- You'll earn extra publicity. ...
- Getting accepted is hard. ...
- There are no additional tax benefits from being a B Corp as opposed to more traditional corporations like an S Corp or an LLC. ...
- It's not available in every state.
Before becoming a corporation, you should be aware of these potential disadvantages: There is a lengthy application process, you must follow rigid formalities and protocols, it can be expensive, and you may be double taxed (depending on your corporation structure).
Is B Corp certified greenwashing? ›Single-serve coffee as a product seems incompatible with a vision for business that's good for people and the planet, as B Corp certification promotes, given the huge amount of waste created. Nespresso's actions over the years are a prime example of greenwashing.
What are the benefits of owning a corporation? ›- Secure your assets, gain tax breaks. Corporation owners enjoy limited liability protection, and are typically not personally responsible for business debts. ...
- Grow your corporation for now—and the future. ...
- Easy transfer and faster funds. ...
- Ready for retirement.
Corporations can make a profit, be taxed, and can be held legally liable. Corporations offer the strongest protection to its owners from personal liability, but the cost to form a corporation is higher than other structures. Corporations also require more extensive record-keeping, operational processes, and reporting.
What is the difference between a company and a corporation? ›A company refers to an individual or group of individuals who conduct commercial business practices to earn a profit. Company is a general term without legal recognition, regulations and permissions. A corporation is always a company, but not all companies are corporations.
How often do you have to recertify for B Corp? ›There is an annual Certification fee to become a B Corp, based on a company's revenue. B Corps must go through the recertification process every three years.
Is B Corp legally enforceable? ›While B Corp claims that certification balances the interests of shareholders with the interests of workers, customers, communities and the environment, B Corp standards are not legally enforceable. Neither the board nor the corporation are liable for damages if a company fails to meet them.