What is a B corp?
A B Corp, or Benefit Corporation, is an accreditation that has been created in order to help businesses focus on social and environmental impact. These companies have proven that they operate in a way that allows them to make decisions based, not only on profits but also on the positive impact they’re having on society and the environment.
There are currently over 5,000 B Corps across 80 countries and 155 different industries, not all of them being obvious ‘green’ companies.
Still with us? Good.
What is a certified B Corporation?
A certified B Corporation is a for-profit company that’s been certified to meet the exact standards of social and environmental performance, accountability, and transparency. If you want to become a certified B Corp, you must complete a full-scale assessment of your business practices and policies in areas like workers' rights, environmental impact, and community engagement.
Once certified, you must commit to meeting higher standards of social and environmental responsibility and to publicly reporting on your progress on an ongoing basis. Certified B Corporations have become increasingly popular in recent years as customers and investors alike are looking for companies that are making a positive change in the world.
But will being a B Corp be the standard for any company in the future? We think it will.
Who certifies B Corps?
We talked about what you need to become a B Corp, but who makes the decisions? In order to become a certified B Corp, you must first complete an assessment administered by the non-profit organisation B Lab. This assessment will measure your company's impact on employees, customers, the community, and the environment. Once certified, you’ll need to maintain this status by meeting high standards and transparency requirements. As a result, B Corps are leading the way in creating a new economy that values people and the planet.
How did the B Corp movement start?
The B Corp movement started in 2006 in the US, by a group of three entrepreneurial friends who wanted to use business as a force for good. They believe that businesses should benefit all stakeholders, not just shareholders. The first 82 B Corps were certified in 2007. Since then, the B Corp movement has been growing fast and is redefining the role of business in society. With over 5,000 certified B Corps in over 80 countries and 155 industries, it’s showing no signs of slowing down.
How long does it take to become a B Corp?
Between 6 to 8 months, sometimes longer. You'll go through a multi-step process and you'll need pass the B Impact Rating System, have an interview with a B Lab member, adopt a B Corp legal framework and sign a term sheet to make official your company's status as a B Corp. While the process may seem lengthy and a bit intense, becoming a B Corp is a great way to show your commitment to making a positive impact on the world. You'll be joining a community of like-minded businesses that share the same goals and values.
What are the benefits of becoming a B Corp?
There are many great reasons why companies are becoming B Corps and why you should too, here are a few:
- Customer loyalty: As a B Corp, you have to meet higher standards of social and environmental responsibility and you're required to publicly report on your progress. This transparency can help build trust with consumers and create a loyal following. As many people become more aware of the impact of their spending, they are looking for companies that align with their values and being a B Corp can give you a competitive edge.
- Employee engagement: B Corps have to consider the impact of their business on all stakeholders, including employees. It’s really not surprising that certified B Corps often have more satisfied workers and lower turnover rates. If that’s not enough, employees of B Corps are also more engaged with their work and committed to the company's mission.
- Attracting top talent: B Corps are leading the way in creating a new economy that values people and the planet. As a result, they're really good at attracting top talent who want to work for a company that's making a positive impact on the world.
- Increased brand visibility: As the B Corp movement continues to grow, certified B Corps are gaining a lot of visibility and media attention. This can help raise awareness of your company and its mission and attract new customers and investors.
- Increased investment: Investors are often looking for companies that are making a positive impact on the world. As a certified B Corp, you'll be able to tap into this growing market of impact investors.
All in all, becoming a B Corp can help your business define its purpose while helping to create a more sustainable and fairer future. If you're looking to take your business to the next level, becoming a B Corp is definitely worth considering.
If you're looking to become more sustainable or help reach B Corp standards, we can help. Our EV salary sacrifice scheme allows employees to lease an all-electric car, which can help your business become carbon neutral without breaking the bank. Your team can save up to 40% on brand new EVs, while also saving yourself and your team some tax money. Electric car business lease schemes are also a great way for businesses to go green and we're happy to help you on your journey. Get in touch today to find out more.