How to Become a B-Corp: Everything You Need to Know

A B Corp certified company is a business that has voluntarily met the highest standards for social and environmental performance. The requirements for this certification are extensive, and cover the company’s key areas such as Governance, Community, Workers, Customers and Environment.

We'll walk you through the certification process, from gathering the required documentation to meeting the B corp standards.

What is B Lab?

B Corporations are for-profit companies, certified by a nonprofit called B Lab. It is an international nonprofit network that aims to build an inclusive and equitable economy that benefits all people, communities and the planet. It creates standards, policies and tools that help businesses shift their behavior, culture and structural underpinnings of capitalism.

By harnessing the power of business, B Lab positively impacts companies around the world, helping them balance profit with purpose. You can learn more about B Lab here.

What is a B Corp?

Certified B Corporations make many of the above mentioned ideals a reality: They are leaders in the global movement for an inclusive, equitable and regenerative economy. B Corp Certification is a designation that your business meets the high standards of verified performance, accountability and transparency from supply chain practices, to employee benefits and more. Our partners at Type:A Brands are the perfect example: The brand’s mission is to create a better deodorant that is 100% clean and safe, with zero tradeoffs in performance or user experience.

What are the Requirements for Becoming a B Corp?

In order to earn the certification, companies must achieve a score of  80 or above on B Lab’s assessment, which is split into four parts — Governance, Workers, Community, and Environment. Among other factors, companies need to demonstrate:

High social and environmental performance: Receive a score of 80 or above for the B Impact Assessment

Transparency: Allow performance information to be publicly available

Legal commitment to changing their corporate governance structure to be accountable to all stakeholders, not just shareholders

To better understand your company’s pathway to meeting the legal requirement for Certified B Corporations, you can use this tool.

Advantages of Becoming B Corporation

The process to achieving and maintaining certification is rigorous and requires effort, but with high standards come remarkable benefits. B Corp Certification comes with many advantages:

1. Increased Credibility and Trust - Certification builds trust with consumers and suppliers. Certification is holistic, and focused on multiple social and environmental issues. Once certified, companies can put the B stamp on their products, showing customers that they’ve been shown to be ethical and sustainable. Recertification also occurs every three years, which shows that the company is committed to continuous improvement.

2. Attracts and Engages Employees and Investors - B Corporations also attract and retain talent and catch the attention of mission-aligned investors. With certification your business is set up to attract the kind of employees and investors that align with your values, and reduces turnover, as well as risk.

3. Encourages Social Responsibility - Companies can lead movements, and many consumers are willing to follow a good cause. If you’re looking to not only make money, but also turn your vision into reality, becoming a B Corporation may be the right move for your business.

4. Gain Competitive Advantage - Many consumers pay attention to and care about sustainability and environmental issues more than ever, and thus make an effort to buy and support businesses that put the planet and people first. With a B Corp Certification, your business can gain a competitive advantage and attract more customers and investors while making a positive environmental and social impact.

Becoming a B Corporation

Achieving B Corp status requires businesses to take a few steps:

B Impact Assessment -by answering a series of questions about your company’s practices and outputs across 5 categories (governance, workers, community, environment and customers) you’ll see where your business stands and how it compares to others.

Gather & Submit Documentation - Gather all necessary documents and data, then submit them. You can find more information on this and all other steps here.

Submit Disclosure “Questionnaire” - After filling out the questionnaire, you will learn about your baseline score. If it is below the minimum 80, you get the chance to reevaluate and prioritize improvement areas.

B Lab Evaluation & Review Call - If your score is 80 or above, and you meet all eligibility requirements, you enter the evaluation phase. B Lab Global will review your documentation and answers from the assessment. After this step, you will have a review call with an analyst, where you’ll verify all of the provided information and your answers.

Certification - If everything looks good, and once the B Corp Agreement is signed, you’re certified!

B Corp Declaration of Interdependence

We envision a global economy that uses business as a force for good. This economy is comprised of a new type of corporation – the B Corporation – which is purpose-driven and creates benefit for all stakeholders, not just shareholders.

As Certified B Corporations and leaders of this emerging economy, we believe:

That we must be the change we seek in the world.

That all business ought to be conducted as if people and place mattered.

That, through their products, practices, and profits, businesses should aspire to do no harm and benefit all.

To do so requires that we act with the understanding that we are each dependent upon another and thus responsible for each other and future generations.

Final Thoughts

The world of B Corporations is growing quickly. Some of today’s top brands  like Patagonia, TOMS, Allbirds, Type:A Brands and others are using their business to be a force of good. With increasingly more consumers seeking out certified companies to purchase from to fulfill their needs, these companies have taken the right steps to achieve the gold standard in better business.

The movement envisions a shift in good-for-everyone business, and we hope you’re as excited as we are to support what it stands for.

Assembled Brands' mission is to help D2C businesses build their brand equity fueled by capital that scales with growth. Find out more about how your business can benefit from working capital, business development and industry insights by filling out our fast and easy application.