What is a B Corporation?
Becoming a B Corp has been at the top of our priorities since we opened our doors, and it’s certainly something we want to achieve within the early years of Probity. But let’s start at the beginning. What are B Corporations and what does it mean to be a certified B Corp?
Defining B Corps
B Corp stands for Benefit Corporation. The easiest way to think of a B Corp is as the intersection between a C Corp and a non-profit. However, contrary to non-profits, a B Corp isn’t focused on a specific public good cause and it isn’t limited when it comes to making profit. A B Corp is a normal business organization that seeks to build value for all stakeholders.
Certified B Corporations follow a thorough process overseen by B Lab, a non-profit organization. This process evaluates companies on how they create value for their non-shareholder stakeholders, such as their employees, local community, and the environment.
The first B Corps were certified in 2007, and today there are over 4000 B Corporations across 50 countries. The certification is industry agnostic, and the service or product being provided doesn’t have to be categorized as sustainable – it is about the way the organization is run, how the employees are treated, and how it uses natural resources.
To be considered a B Corporation, your organization needs to pass an evaluation, and pay a fee per year based on the annual sales of the company. Once certified, the company is required to report annually using a 3rd party standard to show progress towards achieving social and environmental impact to all its stakeholders.
Why become a B Corporation?
One of the trends that have been taking shape over the past few years, and accelerated throughout the COVID-19 pandemic is the general realization that as humans we play an important role in the health of our planet. This realization puts responsibility on all of us to protect our home, specially on those that have influence such as businesses.
Becoming a B Corp is a way to publicly position your company as an organization investing not just in its shareholder’s interests, but also in benefiting the general public. By having a clear identity, companies can communicate their values to their audience in a more impactful way, and in some cases, stand out from the competition.
As consumers and businesses become more and more socially conscious, they may choose to support exclusively companies that share their values. What’s more, this movement seems to be very in tune with the values of the new generations of business people, and as such it is here to stay. Want to become a B Corporation but not sure where to start? Let’s talk!
