Benefits of B Corp Certification
By Tigist Belayneh, B Corp Social Media Intern
The idea of B Lab and the B Corp certification was established in 2006. It started with three friends leaving their careers in business and private equity to create an organization dedicated to making it easier for mission-driven companies to protect and improve their positive impact over time. They promptly saw the results of their hard work as 82 for profit companies became ‘B Corp’ certified in 2007. B Corporations are businesses that meet the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose. For companies to become B Corp certified, companies must complete the B Impact Assessment (with a minimum score of 80), which is a tool that measures a company’s social and environmental impact and meets the legal requirement for their state of incorporation.
The B Impact Assessment and B Corp certification are administered by B Lab. It is based in Pennsylvania and is a non-profit organization that aims to create an inclusive, equitable, and regenerative economic system for all people. B Lab has proven that business can help achieve the universal goal of alleviating poverty, preserving ecosystems, and protecting our environment. Beyond the business realm, B Lab is actively working to fight racism in their organizations.
Once companies are B Corp certified, they enjoy many benefits that come with certification. B Corp certified companies use their certification seal to lead movements, build relationships, attract talent, improve their impact, amplify the voice of others, and protect their mission. The company becomes a leader amongst their industry peers in the sustainable business movement. Our climate is changing drastically for the worse; when customers notice that certain companies are making meaningful changes in their actions to benefit the environment, the company also increases its recognition.
Moreover, when a company is certified as a B Corporation, they join a community of business leaders who share their beliefs that business can solve social and environmental problems. The company is also able to network with thousands of companies. Similar to customers noticing companies trying to induce change, employees are also attracted to working for companies that are on the right side of history. According to TMI Consulting, Tiffany Jana founder and CEO of TMI Consulting stated “My biggest surprise was the social capital B Corp community membership gave me with millennials… I no longer search for high-potential staff; they now come to me.”
Additionally, maintaining B Corp certification through the B Impact Assessment allows companies to set their goals for improvement, create more positive social and environmental impact, and track performance over time. When a company is B Corp certified, they are able to use the B Corp seal on a product, website, sales materials, or business cards. Which communicates that a company is a verified leader. This can attract more customers as well as attract bright employees. Lastly, the B Corp legal framework helps to protect companies’ mission through capital raises and leadership changes. It also gives companies more flexibility when evaluating potential sale and liquidity options.
Most people are unfamiliar with B corporations even though they are customers of companies that are certified. For instance, Ben & Jerry’s has long been B Corp certified. They have publicly stated that “The B Impact Assessment added a new twist to our initiatives – it helped us understand where we are in comparison to other companies. The assessment asks a series of questions to help companies learn what it takes to build a better business – better for their workers, community, and the environment!” The full impact report takes 2-3 hours. Once the company has completed the assessment, they can compare their answers to thousands of other businesses. They will also receive feedback that provides a holistic look at the company’s scores across multiple questions related to the same impact topic. Furthermore, companies also benefit from the certification as they receive assistance to create a customized improvement plan for their business and can use B corps free best practice guides to help them implement their plans.
The Best for DMV Campaign aims to dramatically expand the number of District of Columbia, Maryland, and Virginia business models. They believe their regional challenges cannot be accomplished without board-scale engagement of the private sector. In “The Best for DMV Strategic Communication and Public Awareness Roadmap”, a survey that was administered to 608 businesses, 65% of the respondents indicated that they were not aware of B Lab and 55% of respondents were interested in becoming certified. In the proposal, it is also emphasized the motivating factors of being socially and environmentally responsible. Companies are able to increase their profitability by expanding their customer target size, incentivizing customers to pay a premium price, and increasing customer advocacy and loyalty in all markets. Productivity is also enhanced as their teams are motivated and are a part of a company that’s trying to make a difference. Moreover, investment is also increased as B Corp provides financial grant opportunities. Change starts in our own backyard and being B Corp certified allows companies to influence public policy and local governance as well as change the public’s perception of the company and attract customers and workers.
It’s a long and challenging process to become B Corp certified. However, the benefits are boundless. It enhances companies and launches them to success in many ways. It allows them to expand their customers, withstand competition within the market, receive assistance to remain focused on their plans, and even acquire employees that are brightest and the best. Hopefully, more companies will be aware of B Lab in the coming years, and even more, companies will become certified. We all owe it to our environment to be thoughtful about our actions because as is often said: there’s no planet B.
References
“Meet the 2021 Best for the World™ B Corps.” Certified B Corporation
Best for DMV Strategic Communication and Public Awareness Roadmap
About the Author:
Tigist Belayneh, B Corp Intern, Social Media
Tigist grew up in Silver Spring, Maryland. Currently, she is a sophomore at Montgomery College and will be transferring to the University of Maryland for her bachelor’s degree in Business by the Fall of 2022. She is passionate about social entrepreneurship. She volunteers and works with companies that hope to make a difference in this world. Previously, she interned at Mansa Collab’s and assisted with the Montgomery County Green Futures Project. Additionally, she has also interned at Montgomery College for the Mi Gente Learning Community for social media management and mentorship.
