x+why are on a mission to change the way the world works for good. We do this by uniting, inspiring and amplifying the aims of the mission driven businesses that we house across the UK. The B Corp certification is the gold standard in business when it comes to walking the walk and not just talking the talk around value and impact. Our Why B programme is specifically tailored to companies of all sizes looking to start their journey towards becoming a Better Business.
x+why are on a mission to change the way the world works for good. We do this by uniting, inspiring and amplifying the aims of the mission driven businesses that we house across the UK. The B Corp certification is the gold standard in business when it comes to walking the walk and not just talking the talk around value and impact. Our Why B programme is specifically tailored to companies of all sizes looking to start their journey towards becoming a Better Business.
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Why Be a B Corp?
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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 organisation 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.
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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 organisation 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.
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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.
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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.
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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 - a win-win all round!
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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”.
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Even though Ben & Jerry’s had a long established track record for social responsibility, and had embedded social purpose into its business model for decades, it saw the B Corp movement as way to achieve a higher level of social and environmental purpose and to demonstrate its commitment to improving its ongoing efforts.
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Once a company has completed the Impact 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 customised improvement plan for their business and can use B corps free best practice guides to help them implement their plans.
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B Corps can attract top talent, especially among younger employees who seek meaning in their careers. Patagonia reports that certification helps promote and validate its employee-centric culture, which attracts great candidates because of the company’s reputation as a great place to work. Since becoming a B Corp, Patagonia expanded medical, military, and paid maternity and paternity leave for regular full- and part-time U.S. employees.
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Certification helps connect employees with Patagonia’s mission, leading to a more engaged workforce. Certification revealed that the company could benefit from HR/governance improvements, such as a global code of employee conduct and new corporate governance guidelines that provided a framework to advance a shared company culture, and get all departments focused on advancing the company mission.
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As Patagonia founder Yvon Chouinard has written:“Benefit Corporation legislation creates the legal framework to enable companies like Patagonia to stay mission-driven through succession, capital raises, and even changes in ownership, by institutionalising the values, culture, processes, and high standards put in place by founding entrepreneurs.”
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The arrival and growth of B Corps is a watershed moment for business. We’ve clearly arrived at a time when companies that exclude social and environmental considerations from their operating missions risk losing market share and destroying shareholder value. B Corps are a needed reboot for capitalism for the modern age, ensuring that the social responsibility of business is not only about profits, but also contributing solutions to the world’s most pressing problems.
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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.
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