What is a Certified B Corporation? A Quick Guide to Ethical Business Certification

In a world where the bottom line often overshadows ethical considerations, Certified B Corporations™️ are a breath of fresh air. 

B Corps™️ are not just businesses; they're change-makers. Launched in 2006, the B Corp Certification has become a beacon for companies committed to social and environmental responsibility. Fast forward to today, and the movement has grown exponentially. 

With over 7633 certified B Corps spanning 93 countries and 161 industries, it's clear that many businesses are shifting towards a more holistic approach—one that values not just profits, but also the well-being of society and the planet.

What is a B Corp? 

A Certified B Corporation isn't just a label; it's a commitment. This certification signifies that your business excels in three foundational pillars:

Social and Environmental Impact: B Corps don't just talk the talk; they walk the walk. From ethical supply chains to employee benefits, the certification process scrutinizes every facet of your business to ensure you're making a positive impact.

Transparency: Trust is earned, not given. Certified B Corps are required to publish their impact reports on the B Lab website, bolstering public trust and setting the record straight against "greenwashing."

Legal Accountability: B Corps are bound by law to consider the well-being of all stakeholders, not just shareholders. This stakeholder governance model ensures that your business remains accountable as it grows.

Real-World Examples Across Industries

Patagonia - Outdoor Apparel

• B Assessment Score: 151.4

• Mission: Committed to environmental conservation.

• Impact: Donates 1% of total sales to environmental organizations.

Ben & Jerry's - Food & Beverage

• B Assessment Score: 96

• Mission: A champion for social justice and environmental sustainability.

• Impact: Focuses on Fair Trade and non-GMO ingredients.

Warby Parker - Eyewear

• B Assessment Score: 98

• Mission: Addressing global vision issues.

• Impact: Donates a pair of glasses for every pair sold.

Eileen Fisher - Fashion

• B Assessment Score: 89.1

• Mission: Leading in sustainable fashion and women’s empowerment.

• Impact: Focuses on organic and recycled materials.

Uvaro - Career Success

• B Assessment Score: 121.2

• Mission: Empowering individuals to achieve Career Success in tech sales. 

• Impact: Making tech sales more accessible for underrepresented groups through specialized training and community support.

These companies serve as real-world examples of how B Corp Certification is more than just a badge—it's a commitment to doing business for good. If you're in the midst of a career transition or simply looking for more fulfilling work, consider aligning yourself with companies that share these values.

Why Become a B Corp?

Given the rigorous nature of the B Corp Certification process, you might wonder why any business would willingly subject itself to such scrutiny? The answer lies in the unique benefits that come with achieving this certification, such as:

Unlock Your Potential: The certification is actually a process to hold up a mirror reflecting your company's true impact, helping you fine-tune your mission.

Operational Excellence: With recertification every three years, stagnation is not an option. Continuous improvement is the name of the game.

Brand Trust and Credibility: In a world skeptical of "greenwashing," the B Corp Certification proves to consumers that your company’s mission orientation is credible.

Industry Leadership: Stand out from the crowd. B Corp Certification often catapults companies to the forefront of their industries.

Talent Magnet: Employees are more likely to join or stay when they see their values reflected in your company.

Investor Appeal: Better management equates to lower risk, making you an attractive proposition for investors.

"Becoming a Certified B Corp isn't just about slapping a seal of approval on your business,” says Uvaro CEO Joseph Fung. “It's like turbocharging your company's engine for the long haul. You're not just making your brand look good; you're setting up a system that pushes you to be better every single day. And let's be real, in a world where everyone is skeptical, that B Corp Certification is like a trust magnet for customers, employees, and investors,"

Curious to dig deeper into the B Corp Movement? Check out the full story behind how B Corp is changing the business landscape right here.

How to become a B Corp? 

How to Get Certified

So, you're convinced that becoming a B Corp is the right move for your company. Excellent news! But before we delve into the specifics, it's crucial to understand that becoming a Certified B Corporation is not a one-time achievement. Rather, consider it the beginning of an ongoing commitment—an endless relay race, if you will. 

You're not just crossing a finish line; you're passing the baton to your future self and your team. This is the start of a journey toward continuous improvement and collective action, a journey that evolves with your business and leads you toward a more sustainable and fulfilling future.

For smaller companies, gathering the necessary documentation might take a few weeks, while larger companies could be looking at a few months. Once you've submitted your application, the approval could take up to seven months. This isn't a weekend project, and it's not a process that's rushed—especially given that COVID-related backlogs have only recently been cleared.  

Ready to lace up for the long run? Let's break down the journey ahead.

Step 1: Believe in Business as a Force for Good

The journey to becoming a Certified B Corporation starts long before you fill out any paperwork; it begins with a fundamental shift in mindset. Your business should aspire to be more than just a profit-generating machine. The goal is to weave social and environmental responsibility into the very fabric of your company. This isn't a side hustle or a marketing gimmick; it's a commitment to doing business in a way that positively impacts both society and the planet.

“People Using Business as a Force for Good”

Now, this might sound daunting, but it's more about intentionality than complexity. It's about making conscious choices in how you operate—whether that's in your supply chain, your workplace culture, or your community engagement. These choices will not only set you on the path to becoming B Corp Certified but also make your business more sustainable and attractive to like-minded consumers, employees, and investors.

Perspective From Uvaro’s Journey - Joseph Fung (CEO): "The first step is really about setting your intentions straight. You've got to genuinely want to make a positive impact, not just score PR points. If your heart's not in it, the journey to B Corp Certification will be a steep uphill battle the whole way.”

Step 2: Take the B Impact Assessment

This isn't a quick quiz; it's a comprehensive evaluation that scores your company in five key areas: Governance, Workers, Community, Environment, and Customers. You'll need to dig deep into your business practices, from how you treat your employees to your environmental footprint.

Intrigued to see how Uvaro performed in our B Impact Assessment? You can check out our detailed scores here for a transparent look at our commitment to positive impact.

Perspective From Uvaro’s Journey - Jenna Truong (CFO): "When we took the B Impact Assessment, our scores were eye-opening. We did well in areas like Workers and Customers, but it was clear we had work to do in the Environment. It's a valuable reality check and something we can use to do better on during our recertification"

Step 3: Change Your Articles of Incorporation

Changing your company's articles of incorporation is a big deal. It's not just about filling out forms; it's about making a real commitment. You're putting in writing that your company aims to do good things for society and the environment. This isn't just a promise; it's a legal requirement for how your company will act moving forward.

This step does more than just meet a certification requirement. It tells everyone—your team, your investors, your customers—that you're serious about doing business the right way. It's not just for show; it's a commitment that will guide how you make decisions, who you work with, and how you grow your business.

Perspective From Uvaro’s Journey - Joseph Fung (CEO): "Changing your articles isn't just paperwork; it's a pledge. It's your way of saying that your company is committed to being a force for good, today and in the future."

The B Corp Certification Process

Embarking on the B Corp Certification journey is not a casual endeavor; it's a commitment to running your business in a way that benefits everyone involved, from employees to the environment. The process is rigorous, but the rewards—both tangible and intangible—are well worth the effort. Here's a simplified guide to what you can expect:

1. Understand the Business Case and Legal Requirements: Before diving in, it's essential to understand why you're pursuing this certification and what it entails, including any legal obligations. Consult with your legal advisors to ensure you're fully aware of what's required.

2. Assemble Your Team: This isn't a one-person job. You'll need a dedicated team to manage the process, from data gathering to liaising with different departments. Choose people who are detail-oriented and committed to the company's values.

3. The B Impact Assessment: The core of the certification is the B Impact Assessment, a comprehensive evaluation that measures your company's impact in five key areas: Governance, Workers, Community, Environment, and Customers. This assessment not only provides a score but also serves as a valuable health check against industry standards.

4. Submit Your Application and Pay the Fee: Once you've completed the assessment, you'll need to submit it for verification. There's an application fee, which varies based on your company's annual revenue. Consider this a small investment in your company's future.

5. Verification and Evaluation: After your application is submitted, it undergoes a review process by B Lab, the nonprofit organization that administers the certification. This may include additional documentation and even site visits to ensure your company genuinely aligns with B Corp values.

Finally, once you're approved, you'll need to:

6. Sign the B Corp Certification Agreement and Pay Annual Fees: This formalizes your commitment and varies based on your revenue.

7. Ongoing Commitment: Remember, this isn't a one-time badge of honor. You'll need to recertify every three years, and the standards are always evolving.
   
   
   
   

The B Corp Recertification Process

The B Corp Certification process is a journey of continuous improvement, one that allows your company to align its practices with its values, creating a business that's not just profitable but also a force for good.

As we’ve mentioned a few times, being a B Corp isn't a one-time achievement; it's an ongoing commitment to social and environmental responsibility. Every three years, these Certified B Corporations must go through a recertification process to ensure they continue to meet the high standards set by B Lab. Here's what you can expect in another simplified flow chart:

1. Self-Assessment: Just like the initial certification, you'll start with a self-assessment using the B Impact Assessment tool. This is an opportunity to evaluate how your company has progressed and where there's room for improvement.

2. Documentation and Verification: You'll need to provide updated documentation to support your self-assessment scores. This could include anything from employee benefit plans to environmental impact reports.

3. Fee: There's a recertification fee, which, like the initial certification fee, varies based on your company's annual revenue.

4. Timeline: The recertification process typically takes a few months but can vary depending on the complexity of your business and the thoroughness of your documentation.

5. New Standards: Keep in mind that standards are continually evolving. The recertification process is an opportunity to align with any new requirements and best practices in the field.

Maintaining your B Corp Certification is not just about keeping a logo on your website; it's about continually striving to be a better business. The recertification process is a valuable exercise in introspection and improvement, ensuring that your company remains a force for good as it grows and evolves.

The Cost of B Corp Certification

When it comes to the financial commitment, becoming a Certified B Corporation involves both initial and ongoing costs. The process kicks off with a nominal application fee (currently $150). While this may seem like a small sum, larger companies should be prepared for additional costs tied to extra processes or requirements that may arise during the verification stage.

The financial commitment doesn't end once you're certified. There are annual fees to consider, and these are scaled based on your company's gross annual revenue. For businesses pulling in less than $4.9 million annually, you're looking at a fee of $2,000 per year. On the other end of the spectrum, companies with annual sales exceeding $750 million will need to budget for an annual fee of $50,000. 

It's worth noting that B Lab offers an equity discount for entrepreneurs facing systemic barriers, making the certification more accessible.

Learn More About B Corp and Uvaro

In wrapping up, it's essential to understand that a Certified B Corporation isn’t merely a one-time achievement or a label to slap on your marketing materials. It's a profound commitment to a new way of doing business—a commitment that marks the beginning of an ongoing journey toward continuous improvement and collective action. This isn't a finish line you cross and forget; it's the starting line for a race that evolves with your business, your team, and your impact on the world.