How do you become a B Corp?

Introduction

There are effectively two pathways for B Corp: The Standard Approach and B Movement Builders.

B Movement Builders

This is for all companies with $5Bn+ of annual revenue. Companies with $1Bn+ of annual revenue are likely to have to follow this pathway, too. It includes an application, private phase and public phase.

Please contact us if you'd like to know more.

The Standard Approach

All other companies follow the Standard Approach, notwithstanding there may be some additional requirements if you are large company (but not big enough for B Movement Builders).

---

Both pathways are overseen by B Lab. B Lab is the trust that formulates the standards that sit behind the B Corp process and manages the B Corp movement as a whole. "B Corp" is the branding term applied to companies that have met B Lab's standards and successfully completed the process.

Given the vast majority of B Corps are less than $1Bn in revenue, the rest of this article is focused on The Standard Approach.

The Standard Approach - The Detail

Part 1. Complete The B Impact Assessment

The B Impact Assessment ("BIA"), is an online, free, public resource; a framework that benchmarks a company's performance against a collection of social, environmental and governance standards.

It is positively designed to help companies implement ideas, so there is no negative scoring. It covers operational and strategic issues across five areas: governance, workers, community, customers and the environment. You accumulate points for implementation of ideas; if you exceed 80 points you have crossed a standard threshold that means you can apply for B Corp Certification. At this point, a B Lab Analyst reviews your submission to thoroughly explore your business model, your answers to the questions and any demonstrations of proof that are required for those answers.

Part 2. Make The Legal Commitment

All B Corps must adopt a governance commitment that more proactively balances the concerns of all stakeholders, not just shareholders. How this is implemented in practice depends upon the company's jurisdiction and structure. B Lab will insist on a legal solution to this requirement wherever it is possible. For UK Ltd companies this means amending the Articles of Association.

See: "What is involved in the legal change?"

Part 3. Sign The Declaration of Interdependence

At the end of the Verification process, you are asked to sign the B Corp Declaration of Interdependence. In short, it is a values commitment - a promise to uphold the spirit of what B Corp represents.

Most companies just agree to it and don't think much of it. This is a mistake as the cultural commitment to B Corp is, ultimately, what really matters. Plus, in extreme circumstances where B Lab decides the company's certification needs reviewing or revoking - as happened with Brewdog's - then it is this commitment that allows them to do it, given the legal and points are legitimately met. So, this is a stage with teeth, even though it is not assessed.

How a company decides to ensure this commitment is real is left up to them. This is where our recommendation that a whole company journey is pursued becomes relevant.

Part 4. Pay Your Certification Fee

Submission Fee

As of April 15th 2021, there is a £250 fee for UK submissions of a B Impact Assessment to help fund the cost of review. At this stage a submission fee is only applicable in the UK due to such high numbers of companies applying.

Subscription Fee

A fee is payable that contributes towards running the B Corp community.

You can see the costs here: B Lab UK Fee Table

Part 5. Announce Your Certification!

At this point, you will receive confirmation and assets that help you tell the world you’re a fully-fledged B Corp.

It’s recommended to make a splash. There are plenty of examples to follow and learn from in terms of sharing this news.

There is nothing to stop you talking about your certification intention prior to completion, indeed we encourage it. You just can't refer to yourself as a B Corp until it is completed.

Download the Complete Guide to B Corp Certification for Small and Medium Sized Enterprises.