HomeNewsWhat is B Corp certification and why should your business get onboard?
What is B Corp certification and why should your business get onboard?
Have you ever heard of Barnsley-based businesses like Webmart and gbac Ltd? Or maybe you’re familiar with the much loved Sheffield brand, Henderson’s Relish? They all have one thing in common – they’re certified B Corporations, or B Corps for short. Along with over 2,000 other UK companies [1], they’re showing a commitment to making a positive impact on society and the environment.
Here at The Business Village, we’re excited to be working with Profit Impact, a sustainability consultancy, to begin our B Corp journey. So far, we’ve created a sustainability scorecard to highlight our strengths and where we can improve. This will help to keep us on track as we go through the steps towards B Corp certification.
Since B Corps have only been around since 2007, it’s no surprise that many people still wonder what they’re all about. In this blog post, we’ll break that down, explore the benefits for businesses, and share what’s involved in getting certified.
What is a B Corp?
A certified B Corp is a for-profit business that meets strict social and environmental standards. B Lab, a non-profit organisation, manages the certification process via their online B Impact Assessment.
The idea behind B Corp is that businesses balance profit with the well-being of people and the planet. It’s about committing to a better future for everyone, from employees and customers to the wider community.
More and more customers are looking to buy from brands that are sustainable and ethical. So, by becoming a B Corp, you’re showing people that you share their values, helping to build trust and loyalty.
How B Corp certification can benefit your business and community
B Corp certification isn’t only about attracting customers though. It has other benefits for your business too:
Recruitment and retention: People like working for companies that care. Becoming a B Corp shows your commitment towards making a positive impact. This can make it easier to attract high-quality employees and keep hold of the people you value.
Business growth: B Corp companies often enjoy more opportunities and stronger relationships with stakeholders. This can enhance your brand reputation and lead to further growth.
Networking and training: As a certified B Corp, you’ll join a global community of like-minded businesses. You’ll get opportunities for collaboration and access to exclusive B Corp community events.
Webmart, a Barnsley-based B Corp has seen real benefits since becoming certified. Tom Maskill, Webmart’s CCO explains:
“Webmart has been a certified B Corp for nearly 3 years now, and we’ve realised a number of benefits. One is recruitment and retention of talent, the B Corp standard effectively and concisely demonstrates our commitment to using business as a force for good. Similarly, through the rigor of the certification process, we’ve been able to formalise a number of policies and introduce business improvement measures across a range of departments improving the good we do as a business. Even if you don’t want the B Corp badge, I’d still recommend completing the free Impact Assessment to understand where you’re strong as a business, and where there’s potential for improvement. It’ll certainly ask you questions you’ve not considered before!”
How to become B Corp certified
Becoming a B Corp is a rigorous process that takes time and effort. Your business must meet the standards set by B Lab, broken down into the following five sections:
Workers: This is how you treat your employees. It covers financial security, health and safety, wellness, career development, and employee satisfaction.
Governance: This is about your mission and engagement. It looks at your social and environmental impact, ethics, and transparency.
Environment: This section is about your environmental management practices and their impact. It includes your carbon footprint and whether you’re working to reduce emissions.
Community: This evaluates how your company engages with the community it operates in. It covers diversity, equity and inclusion, economic impact, engagement, and your supply chain.
Customers: This is about your customer relationships. It includes the quality of products and services, ethical marketing, privacy and security.
The first step to becoming B Corp certified is completing an online questionnaire known as a B Impact Assessment. This assessment will guide you through each of the five areas mentioned above. To qualify for certification, you must score at least 80 out of 200 points.
The B Impact Assessment will show you where there’s room for improvement. Then, once you’re happy, and you have enough points, you submit the assessment to B Labs for review. Successful completion of the review process leads to certification.
Once you pass this step, you’ll need to meet the B Corp legal requirement which may involve amending your company’s Articles of Association. It commits you to considering the impact of your decisions on all stakeholders, not just shareholders.
Finally, you’ll sign the B Corp Agreement and the Declaration of Interdependence, making your status official.
But this is not a one-time achievement! B Corps must disclose their impact score and re-certify every three years. This process helps them maintain high standards and adapt to new challenges.
Who can become a B Corp and how much does it cost?
B Corp certification is available to any for-profit business, regardless of size or sector.
The main requirement is that your business must have been operating for at least 12 months. The B Impact Assessment is tailored to your company’s industry, size, sector, and location based on data from the previous year.
Start-ups or younger businesses can apply for B Corp Pending status. This shows you’re on your way to full certification once you have 12 months of data for the B Impact Assessment. Sole traders need to wait until they’ve been in business for a year and then apply for full certification.
Submission fee: A one-off tiered fee once you submit your assessment. It covers a high-level review before verification and ensures commitment to the process.
Verification fee: A one-off tiered fee payable before having your assessment verified.
Annual fee: Based on your company’s total revenue on the last set of audited accounts.
Pending B Corp fee: If you apply for Pending B Corp status, you’ll pay a one-time fee, covering the 12-month period.
The first businesses received B Corp certification in 2007. Since then, more than 8,000 [2] businesses worldwide, including over 2,000 in the UK, have become B Corp certified. This shows it’s not just a trend, but part of a growing movement toward more responsible and sustainable business practices.
As B Lab UK states, “Certified B Corporations, or B Corps, are companies verified by B Lab to meet high standards of social and environmental performance, transparency, and accountability.” [3]
In practice, being a B Corp means balancing profitability with positive impact. B Corps commit to transparency and must meet high standards of legal accountability. They re-certify every three years and, failure to meet the criteria can result in the loss of B Corp status. B Lab updates these standards on a regular basis to stay up to date in a changing world.
Today, both customers and businesses recognise that simply talking about making a difference isn’t enough. It’s essential to show a genuine commitment to building a better future. Becoming a B Corp proves you’re not making empty promises. It highlights your dedication to social and environmental responsibility. And it will set you apart in a competitive market.
In a world that values accountability and integrity more than ever, B Corp certification is more than a badge of honour. It’s a vital step towards creating lasting change.
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