Article
May 1, 2021

B Corp: demystifying the Impact Business Movement

Decoding: understanding and joining the B Corp movement

Among the certifications emerging to frame and lend credibility to sustainable development initiatives, the B Corp certification is gaining an increasingly powerful and widespread following. What is this movement all about? How do you become B Corp certified? In this article, as part of B Corp 2021 month, COESIO demystifies the certification process, shares practical advice, and presents a customized support package for your company.

Setting the scene

Launched by the non-profit organization (NPO) B Lab in 2006, B Corp has today become one of the best-known sustainability management certifications in the world, and plays an important influential role in the business community. By becoming certified, B Corps commit to using their organization as a lever to do good.

Each year, the B Lab and certified companies dedicate a month of communications to promoting the movement. It was under the theme of "Better Business " that B Corps 2021 month was launched in early March. Why "Best Company "? Because, compared to so-called traditional companies, B Corps aim to do better, by integrating improved social and environmental practices and by demonstrating a high level of transparency and legal responsibility. Through their efforts, these companies demonstrate that profit and growth can and must have a positive impact on stakeholders and society in general (e.g. employees, the community, and the environment).

Now counting over 3,700 companies worldwide, including 300 in Canada, the B Corp movement is experiencing significant growth, despite the current global pandemic context. This is unsurprising, as many businesses have been forced to reconsider their business models in recent months. Consumers are increasingly interested in making responsible purchases and workers are seeking employment with companies that align with their values.

profit_b-corp

‍What are theprerequisites?

Although B Corp certification can be obtained by any type of company, organizations wishing to become certified must ensure that they meet two conditions:

  1. They must be profit-making.

Although only for-profit companies can become B Corp certified, the B Corp questionnaire(B Impact Assessment) can be used free of charge by any type of organization. It is an excellent tool for self-diagnosis of eco-responsible practices, enabling organizations to identify levers for improvement.

  1. They must have been in operation for at least 12 months.

Companies wishing to become certified are assessed on their past social and environmental performance, not on what they aspire to become. For this reason, B Lab reserves certification for organizations that have been in operation for at least 12 months. On the other hand, the B Lab has developed a status called " Pending B Corp " which enables younger organizations (less than 12 months old) to join the movement and signal to their stakeholders that they wish to engage in the certification process once they have reached a certain level of maturity.

What are the stages in the certification process?

First and foremost, it's essential that your organization's management understands the importance of balancing profit and impact. Management support is a critical element in integrating sustainability into an organization. Once this support has been obtained, you can then begin the certification process:

  1. Complete the B Impact Assessment questionnaire, along with the "Disclosure Questionnaire," and achieve a passing score of 80 points.
  2. Modify your corporate statutes to take into account the interests of your stakeholders
  3. Provide the requested documents, then complete the telephone audit with B Lab
  4. Pay the annual certification fee (which depends on your company's sales) and publish your score on the B Corp Directory
  5. Celebrating and communicating your certification

Please note: each year, 10% of B Corps are randomly selected to undergo an additional audit, either virtual or in person. Through this audit, the B Lab ensures the veracity and credibility of the companies' scores.

What is the B Impact Assessment questionnaire?

For the majority of companies completing the process for the first time, the most demanding and time-consuming stage is completing the questionnaire and achieving the minimum score, i.e. 80 points. Through this questionnaire, companies initially self-assess their social and environmental performance according to 5 main pillars:

pilliers_b-corp

The questions companies must answer in the questionnaire take 4 forms:

  1. Unweighted : Unweighted questions do not allow companies to score points, but rather enable the B Impact Assessment to better understand your company and thus present you with questions tailored to its context.
  2. Operational: Questions related to company operations assess the day-to-day impact of the company's operations on its various stakeholders.
  3. Business model impact: Business model impact questions are much more complex. They assess whether the organization's business model actively participates in the creation of positive social or environmental impact. These aspects are much rarer to find in business, and most companies that complete the B Impact Assessment score no more than 2.
  4. Transparency: Finally, the company must answer transparency questions on the "Transparency Requirements Form". In particular, the company must disclose whether it engages in various activities such as mining, alcohol or tobacco distribution, etc. Although there are no negative points associated with this section, these answers enable the B Lab to seek further details during the audit, if necessary.
questions_b-corp

Here are a few tips to help you get started

  • Clearly defined roles and responsibilities: Various methods can be used to complete the B Impact Assessment, but first and foremost, roles and responsibilities must be clearly identified. In some cases, one person will be responsible for filling in the questionnaire themselves, and will consult specific people for specific questions. In other cases, departmental managers may be identified, enabling the B Corp philosophy to be disseminated to a larger number of employees.
  • Completing your company profile: Since the questionnaire is adapted to the industry, size and region of your company, it's essential to make sure you've completed this first section correctly. In the event of an error, it will be possible to correct it, but this will require additional time and delay the certification process.
  • Remain conservative: aim for a score of at least 85-90 points before submitting, as this may be revised downwards during the audit.
  • Indicate when a question is not applicable to your context: When a question does not apply to your company's case, please answer "Not Applicable." The points associated with this question will then be redistributed to other questions within the same pillar. Make sure to select this option only when truly applicable, as otherwise, your points may be reduced during the audit.
  • Please amend your legal status as soon as possible: Although B Lab allows a few months for companies to amend their legal status, it is recommended to do so as early as possible since several points in the questionnaire are associated with this modification.
  • Integrate B Corp into your corporate structure and culture: When starting a B Corp process, an organization should not aim for perfection, but rather for a process of continuous improvement. To achieve this, it is imperative to integrate B Corp into your corporate structure and culture, enabling you to spread the B Corp philosophy to as many employees as possible.

Where to start?

Now that you have a better understanding of the B Corp certification process, where do you start?

  1. Create your free account on B Impact Assessment and start filling in the questionnaire.
  2. Contact us for guidance on your B Corp project. We support our clients every step of the way, from the B Corp assessment to communicating your impacts.

Written by :

Marius André, Director

Chloé T. Bergeron, Consultant

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