In our corporate society, where profit is prioritised over people and the planet, a new breed of companies is emerging, where social and environmental impact are prioritised alongside profit and returns. At the forefront of this movement is B Corp certification, a rigorous accreditation awarded to businesses that meet high standards of social and environmental performance, accountability, and transparency.
In this blog post, we’ll delve into what it means to be a B Corp, why it matters, and highlight some exemplary B Corp companies leading the charge towards a more sustainable and equitable future.
What is a B Corp?
B Corp, short for Benefit Corporation, is a certification granted by the nonprofit B Lab to companies that demonstrate a commitment to balancing profit with purpose. To become certified, businesses must undergo a comprehensive assessment of their impact on workers, customers, the community, and the environment. The assessment covers various aspects of business operations, including governance, employee benefits, environmental practices, and community engagement. Companies must also meet the B Cort legal requirement to become accredited. The legal requirement requires committing to considering the interests of all stakeholders and upholding the B Corp mission-aligned values by changing their Articles of Association.
Why the B Corp Certification Matters:
- Social and Environmental Impact: B Corp certification goes beyond traditional measures of success, such as revenue and profit margins, by evaluating a company’s positive impact on society and the planet.
- Transparency and Accountability: B Corps are held to high standards of transparency and accountability, ensuring that they uphold their commitment to social and environmental responsibility
- Consumer Trust and Loyalty: Consumers increasingly seek businesses that align with their values. B Corp certification provides a recognisable marker for customers who want to spend their money in a way that aligns with their values. The B Corp logo helps build trust and loyalty for brands and customers.
- Legal Protection: In some jurisdictions, B Corps have legal protections that allow them to consider the interests of all stakeholders, not just shareholders, when making business decisions. This enables B Corps to prioritize social and environmental impact without fear of legal repercussions.
According to B Lab, there are over 1500+ B Corps in the UK and over 500 B Corps globally. Here’s a quick overview of some of the most well known B Corps and their impact.
Well know B Corp Companies and Their Impact:
- Ben & Jerry’s: Known for its popular ice cream flavours, Ben & Jerry’s is also dedicated to social justice and environmental sustainability. In addition to committing to support fair trade practices, Ben & Jerries were granted B Corp status due to their initiatives to eliminate social and economic injustice.
2. Patagonia: A leading outdoor apparel brand, Patagonia has long been committed to environmental stewardship. As a B Corp, Patagonia has implemented sustainable practices throughout its supply chain, from using organic cotton in its clothing to advocating for environmental causes. Patagonia has also recently made headlines after the founder announced that he had given the company away to a charitable trust, so any profits not re-invested in the company will be used to fight climate change.
3. The Body Shop: The global beauty company, the Body Shop became a B Corp in 2019. They were awarded their B Corp status due to being the first company to use Open Hiring, their circular economy policies, their fight against animal testing and for running the world’s largest Community Fair Trade programme.
The B Corp certification represents a new paradigm for business that values purpose, people and the planet alongside profit. By prioritising social and environmental impact, B Corp companies are leading the way towards a more sustainable and equitable future.