What are B Corporations (B Corps)? What does the B stand for?
The B stands for “benefit”. Benefit corporations are traditional for-profit corporations that have committed to higher standards of purpose, accountability and transparency and are required to consider all stakeholders in their decisions.
Purpose: Benefit corporations commit to creating public benefit and sustainable value in addition to generating profit. This sustainability is an integral part of their value proposition.
Accountability: Benefit corporations are committed to considering the company’s impact on society and the environment in order to create long-term sustainable value for all stakeholders.
Transparency: Benefit corporations are required to regularly report to shareholders on how the company is balancing these interests.
Certified B Corps vs. Benefit Corps
Not all benefit corporations are certified. Typically the abbreviation of “benefit” to “b” indicates that a company is certified based on the standards defined and regulated by the non-profit company, B Lab.
Benefit corporations may choose to be certified as B corporations, as well, but there is no requirement to do so. Companies of any size, structure, or location may be certified as B Corps.
Companies with current Certifications from B Lab are granted permission to display the Certified B Corporation emblem on their digital and physical brand collateral. To see the latest list of Certified B Corps, view the B Corp Directory.
What are the required standards to maintain B Corporation Certification?
To be a Certified B Corp, a company is legally required to consider the impact of their decisions on their workers, customers, suppliers, community, and the environment and therefore, must meet a certain score on the B Impact Assessment, which measures a company’s impact on its workers, community, and environment.
The nonprofit company, B Lab, which serves a global movement of people using business as a force for good, manages initiatives such as: B Corp Certification, administration of the B Impact Management programs and software, and advocacy for governance structures like the benefit corporation. Learn more About B Lab.
Other Key Differences:
- Self-reported performance
- While many benefit corporations use the B Impact Assessment, benefit corporations do not need to reach a particular score, nor have their performance verified or audited by B Lab or anyone else
- Only available to corporations in 30 U.S. states and D.C.* (*Oregon and Maryland offer benefit LLC options)
- Requires state filing feeds from $70-$200
Certified B Corps
- Legally required to achieve minimum verified score on B Impact Assessment
- Recertification required every three years against evolving standard
- B Lab is the certifying body and supporting 501c
- Available to every business regardless of corporate structure, state, or country of incorporation
- B Lab certification fees from $500 to $50,000/year, based on revenues
About Authentic Labs
At Authentic, we focus on adding value to products by delivering actionable content to consumers at the point of purchase and throughout the life of the product. Real was made to deliver the brand impact information consumers want in an environment that allows brands to maintain control of the content and narrative. Your brand. Your message.
We make an effort to work directly with brand making a difference. This includes B Corps. Reach out to us or start your free Real account so we can help you make your packaging smart, reduce waste, enhance ownership, and create transformational data streams with packaging data.