On the Future of B Corps
There are now thousands of businesses globally with B Corp status. Each year, spread across hundreds of industries from beauty and fashion to sport and technology, they keep on coming.
The idea is for the certification to help companies better balance their mission to make money with their mission to make the world a less shitty place. Companies achieve B Corp status based on how they score out of 200 on a variety of measures from treatment of workers and customers to impact on community and the environment. To certify, companies need to score at least 80 points and legally cement their B Corp commitment into their mission statements.
With 1,300 B Corp companies, the UK has the highest number relative to its population in the world. More businesses meeting certain commitments to the environment, community and staff – what’s not to like?
It turns out nothing is that simple… Some people think that the B Corp movement is at a crossroads. For those with their own business or looking to start one, and wondering if B Corps live up to the hype, here are the main things to be aware of.
Pros
B Corps help companies become better versions of themselves. To achieve and maintain B Corp status, companies have to undergo a comprehensive assessment that proves they are meeting high levels of overall social and environmental performance. Generally speaking, they help companies embed sustainability into everything from how they hire staff to how they define their mission.
Because B Corp status is hard to get — two in three applications are turned down — it has become a badge of honour. Product packaging and company ads across social media increasingly display the B Corp logo in the same way they might advertise organic or Fairtrade status.
Around one-third of consumers look for brands with strong sustainable and ethical credentials, according to a 2021 Deloitte survey. Young adult customers, in particular, almost expect it.
B Corps build trust with suppliers and attract mission-driven investors.
In the same way people like buying from B Corps, people also like working for them.
Cons
The certification process is time consuming and expensive – anywhere between $500 and $50,000 each year – and this has to be reappraised every three years. Sometimes it can take a couple of years for a company to gather all of the relevant documents. What’s more, further delays can be caused by the backlog of B Corp applications.
The community of B Corps used to be small and made up almost entirely of independent companies. Not anymore. Giant corporations are increasingly getting certified, with smaller businesses worrying that the credibility of the certification is being weakened along with its integrity.
Accusations of greenwashing have become a hot topic. Despite human rights violations on farms that grow its coffee and its questionable sustainability practices, Nespresso is a certified B Corp. Innocent Drinks, a subsidiary of Coca Cola, has also maintained its certification following advertisements banned in the UK after an activist network filed a formal complaint for their blatant greenwashing.
A common criticism of the current process points out that businesses can be selective in the areas they choose for monitoring impact. For example, a company might treat its employees poorly but have outstanding green credentials, enabling them to still gain accreditation.
