BCorp: Building a better business

When we think of companies, we often think about their primary goal – making profits. However, there is a global movement that is reshaping this conventional perspective. This movement is led by a unique type of corporation known as B Corporations, or B Corps. These businesses are using their influence to create an inclusive, equitable, and regenerative economy. So, what exactly is a B Corp, and how does a business become one? Let’s dive in to answer these questions.

The B Corp Certification

Certified B Corps are businesses that meet the highest standards of social and environmental performance, public transparency, and legal accountability. This certification isn’t just about one aspect of a company, like employee welfare or environmental responsibility. It’s a comprehensive assessment of how a company impacts all its stakeholders – from employees, suppliers, and the community to the environment and, of course, the shareholders.

To become a B Corp, a company needs to go through a rigorous process. First, the company must score at least 80 out of 200 points in the B Impact Assessment, a test of the company’s social and environmental performance. In addition, the company must pass a risk review to ensure it meets B Lab’s evolving risk standards, which consider potential negative impacts associated with a company’s industry, policies, and practices.

The Legal Side
But B Corp Certification isn’t just about performance; there’s a legal aspect too. A B Corp must alter its corporate governance structure to account for all stakeholders, not just the
shareholders. Furthermore, a B Corp must exhibit transparency, making its performance against B Lab’s standards publicly available on B Lab’s website. This openness promotes trust among consumers, communities, and suppliers. In addition, it helps the company attract and retain employees and mission-aligned investors.

The Path to Certification
The pathway to B Corp certification varies, and it’s not a one-size-fits-all process. Factors like company size, revenue, industry, and ownership structure can all influence the path to
certification. B Lab provides various guides to help companies of different sizes understand the process.

Once a company decides to pursue B Corp Certification, they must register for the free and
confidential B Impact Assessment and use the Legal Requirement Tool to determine how to
integrate stakeholder consideration into their governance structure. The company then has to complete a Risk Review and gather supporting documentation and data. After all these steps, the company can submit the B Impact Assessment for review.

Upon achieving the required scores, the company will be asked to sign the B Corp Agreement and then will be officially certified. It’s a moment for celebration! After that, the company will publish its score and impact report on the B Corp Directory and then continue the process of constant improvement, aiming for recertification every three years.

Monahans: A Journey
One company currently going through the B Corp process is Monahans, the South West’s
largest Accountancy firm. Writing on their recent blog, Sophie Austin, Partner and Chief Peoplem Officer said:

“For some time, we have been increasingly concerned about sustainability, our impact on the environment and the wider climate crisis. But B Corp certification goes deeper than encouraging our colleagues to recycle in our offices; it is about making a positive environmental and social impact and employing ethical practices across our working process and relationships with employees, our clients and our suppliers.

It is also more than simply something to shout about. Indeed, too many companies are getting caught out in the deplorable practice of greenwashing when they want to be seen doing something good, rather than actually doing good. So, the B Corp framework gives us a number of clear indicators against which we can work and to benchmark ourselves. Because it’s nice to know what we are doing well, but it’s more important to identify where we need to be better. And we’re fully aware that we’re not the finished article.”

Declaration of Interdependence
The B Corp movement is driven by a shared vision and a shared commitment. B Corps believe in using business as a force for good, conducting operations as if people and the environment matter, and aspiring to do no harm and benefit all through their products, practices, and profits.

In the end, being a B Corp isn’t just about obtaining a certification—it’s about a commitment to a different way of doing business. It’s about being part of a global community that believes in the power of business to be a force for good, not just in the world of commerce, but in the world at large.

Conclusion

The B Corp movement is creating a new type of corporation, one that isn’t solely focused on profits but on the well-being of all stakeholders. It’s an opportunity for businesses to step up and play a crucial role in building a more inclusive, equitable, and regenerative economy. So, the  next time you see a company labelled as a B Corp, you’ll know it’s a business that is truly dedicated to making a positive impact on the world.