B Corp Certification is a status granted to conscientious businesses that meet “high standards of social and environmental performance, transparency, and accountability”. Working for more than just profit, they aim to be part of the solution, not part of the problem.
The certification process is extensive and rigorous. However, B Corporations are shown to outperform their competitors across numerous areas of business as a direct result of obtaining this accreditation.
We discuss B Corp Certification in more detail below, including the business benefits, eligibility requirements, and the steps you need to take to become a Certified B Corporation in the UK.
What is a Certified B Corporation?
Verified by Standards Analysts at the global non-profit B Lab, Certified B Corporations (B Corps) are ‘for-profit’ businesses that prioritise decisions and actions that are beneficial to society and the environment.
Rather than focusing solely on profit, B Corps commit to using business as a force for good. They are mission-driven and strive to make a positive impact on all stakeholders, from workers and customers to communities and the planet.
There are currently more than 7,300 B Corporations around the world. The UK alone is home to some 1,500 of these B Corps, which operate across 58 industries and employ more than 80,000 UK workers.
As leaders in this global movement for an inclusive, fair, and regenerative economy, B Corporations enjoy a whole host of business benefits from their certified status, such as:
- attracting conscious consumers
- higher customer retention levels and greater brand loyalty
- increased annual growth in turnover
- attracting and retaining talent
- higher levels of employee motivation, engagement, and diversity
- drawing mission-aligned investors
- higher levels of innovation
- building trust with suppliers and communities
- opportunities to collaborate with other B Corps
- improved business efficiency
- long-term resilience
Whilst incredibly worthwhile, the B Corp Certification process is rigorous and time-consuming. It is not a simple accreditation – it requires a great deal of preparation and planning, and a commitment to continuous improvement.
How to achieve and maintain B Corp Certification
To achieve and maintain certification, you need to adhere to a number of steps:
1. Complete the B Impact Assessment
The B Impact Assessment (BIA) is a series of questions designed to measure the positive impact of your business in five areas: governance, workers, community, the environment, and customers. The assessment is comprehensive and challenging, and you need to achieve a score of 80 points or above (out of 200) to certify.
2. Meet the B Corp Legal requirement
To show that you are committed to being a responsible businesses, you must meet the B Corp legal requirement. This involves updating your company’s articles of association to include specific B Corp legal language, confirming that the business aligns with the values of the movement and will consider all stakeholders (as opposed to just shareholders) in its decision-making.
3. Sign the B Corp Agreement and Declaration of Interdependence
To complete the certification process, you will need to sign the B Corp Agreement, which is legally binding, and agree to the following Declaration of Interdependence.
We envision a global economy that uses business as a force for good.
This economy is comprised of a new type of corporation – the B Corporation – which is purpose-driven and creates benefit for all stakeholders, not just shareholders. As B Corporations and leaders of this emerging economy, we believe:
That we must be the change we seek in the world.
That all business ought to be conducted as if people and place matter.
That, through their products, practices, and profits, businesses should aspire to do no harm and benefit all.
To do so requires that we act with the understanding that we are each dependent upon another and thus responsible for each other and future generations
4. The review process
The review process begins when you submit your assessment and pay a submission fee of £250 (plus VAT).
It will be evaluated and verified by B Lab’s independent Standards Management Team, which can take several months in total. You will need to provide documentation and other supporting evidence to verify the answers you have given in your assessment.
Your score may drop below 80 points during the verification stage, so you might have to make improvements in your business throughout the review process.
If your company’s score remains above 80 points after the verification stage, it will be certified as a B Corporation. You can then use the B Corp logo on your marketing materials and products.
5. Write an annual Impact Report
To uphold your B Corp’s commitments to transparency and accountability in relation to social and environmental performance, you must write an annual Impact Report detailing your company’s progress.
You will be required to send the annual report to B Lab, ensuring that it is made available to all stakeholders and published on your company website.
6. Pay an annual certification fee
B Corps are required to pay an annual certification fee. The amount you pay is determined by your company’s total revenue in the last set of accounts. The annual fee ranges from £1,000 to £50,000.
7. Apply for recertification
To maintain your B Corp Certification, you must recertify every three years. This means that you will need to review your B Impact Assessment to ensure that all of the information is correct and up to date and that your score remains above 80 points.
Ideally, you should use the assessment tool periodically to monitor your company’s progress and score in the years between certifications.
What types of businesses can be certified as B Corps?
Almost all types of businesses can be certified as B Corps. This includes limited companies, limited liability partnerships, general partnerships, sole traders, mutuals, and cooperatives.
However, to be eligible to apply, your business must be a for-profit venture that has been in operation for at least one year. Charities and non-profit organisations cannot apply for B Corp Certification.
If you’re running a startup and have been trading for less than 12 months, you are eligible to apply for Pending B Corp status. This is a great way to start the journey toward full certification, and get involved in the B Corp community whilst you’re establishing your brand image and values.
Thanks for reading
Whichever type of commercial business you have, B Corp Certification can be incredibly beneficial.
If this is something that you are considering, it would be worthwhile seeking legal advice to discuss your options and help you to prepare.
Please leave a comment below if you have any questions about this post. Be sure to check out the Rapid Formations Blog for more business-related advice and limited company guidance.
