The B Corp movement is growing, particularly in the UK, which is the fastest developing international market. But what exactly is a B Corp, and why would a company want to become one? The answer can be weighted differently according to businesses’ current priorities. For some, including Wilful, it’s mainly about attracting talent. Many brilliant communicators are all too aware of the issues affecting a just and green transition, so they want to work for a company that is part of a global movement in response. Looking for more help on becoming a B Corp? Narda Shirley, the co-founder of Wilful Group advises further.
Be clear about why
B Corp certification sends a clear message that a company has been rigorously vetted from top to bottom for its environmental, community and customer credentials. If talent isn’t the primary motivator, it might be growth and expansion, in which case B Corp certification can be a useful calling card for new customers who want to buy ethically. Or maybe it’s neither of those things, and a company founder is doubling down on values as part of their work to build a legacy.
Whatever the impetus, B Corps can all be viewed through a consistent lens – that business has the power to be a force for good. B Corps are committed to using their influence to bring about positive outcomes, whether that’s manufacturing carbon neutral products or offering services that help sectors accelerate towards a just and green transition.
Prepare to examine everything
The B Corp certification falls into five areas. One important distinction to underline is that, unlike Rainforest Concern on a packet of tea or FSC on a greetings card, this isn’t a product level certification. The Business Impact Assessment (BIA) scrutinises operations from top to bottom looking into every policy and practice in the business.
Most kinds of for-profit business, from a sole trader upwards, can undergo certification if they have been in operation for at least a year. Start-ups, those with related entities, or large multinational and public companies, have additional requirements. Large companies in the UK that have successfully certified include Innocent Drinks, Coutts Bank, The Body Shop and the publicly listed consultancy, Kin & Carta.
Changing legal status
There is a legal requirement that needs to be properly understood as it requires all B Corps to change their legal documents (in UK company law, that’s the Memorandum and Articles of Association). The change provides a legal basis to allow directors to consider the interests of all stakeholders, not just shareholders, when making important decisions.
The BIA is a free online tool which businesses can use to benchmark what good B Corp scoring looks like in their sector. Companies can create an account and answer the questions, checking their score as they go. A minimum score of 80 is needed to move forward with certification. It’s all completely free of charge until a company decides if it wants to certify. At this point, B Lab, the non-profit entity that operates the certification audit process, will take a fee linked to the size of the business that is applying. It will then assess the application, asking for various proof points to ensure that no-one games the system.
The BIA questions and suggestions offer a rich source of inspiration and ideas about how to improve businesses in line with the B Corp values. Appointing independent directors to the board, working with suppliers owned by people from minority groups and cutting carbon emissions are just a few examples.
Signing up for continuous improvement
The BIA covers governance, community, workers, environment and customers. The new B Corp UK website is packed full of case stories and ideas, from Jude’s carbon negative ice cream to Y.O.U underwear’s highest scoring UK company with just three employees.
Companies convinced that B Corp certification is right for them should be prepared for a long journey. Every three years they will need to recertify and the commitment each time is that they will keep doing better and improve their score.
Enjoy it!
The final consideration is to make sure that everyone is having fun. The B Corp community is very sociable, supportive and collaborative – prepare to make some new friends and have fun along the way.
