B Corporation certification (also called “B Corp Certification”) is a private, third-party standard for companies that meet certain social and environmental performance standards as well as principles of transparency and accountability. It is given to for-profit businesses by B Lab, an international non-profit group. For a company to get the certification, it must take an online test and get at least 80 out of 200 points.
Then, to get certified, it must go through a process of assessment and review and show proof. The assessment looks at the whole way a company works and measures its positive effects on governance, workers, the community, the environment, and other areas (like energy efficiency, employee benefits, corporate transparency, etc.) as well as on the product or service it sells. Companies that want to get certified also have to write their stakeholder commitments into their governing documents.
Branding is the main benefit of being a B Corp. In an age of “green-washing,” the B Corp certification is like a label that helps customers find companies that are more trustworthy because they have met standards that have been checked by a third party. People often mix up Certified B Corps with benefit corporations, which are a legal form for companies with a mission.
