It is more important than ever for companies to demonstrate that they support the environmental and social challenges facing the World. Certified B Corporation (B Corp) Status is to Businesses what Fair Trade is to Coffee, promoting public transparency and legal accountability.
The Body Shop, Patagonia and Danone are just a few big name brands who have gained B Corp status. Launched in the US by the non-profit B Lab in 2007, over 3,200 companies in 72 countries worldwide have committed to take a “triple-bottom line” approach to business, balancing profit and social and environmental responsibilities.
Why consider a B Corp certification for your business?
As we all become more environmentally aware of purchases we make, consumers and employees alike want to associate with companies who are considering their social and environmental impact. B Corp status can assist in attracting and retaining high quality talent, additional customers and potential investors. Social and environmental impact is clearly high on the agenda for millennials, the latest Deloitte millennials survey found that 74% of millennials would leave employers who didn't prioritise having a positive impact on local communities in the next 5 years and 42% said they have begun or deepened a business relationship because they perceive a company's products or services to have a positive impact on society and/or the environment.
How can you become B Corp certified?
To meet the requirements for a B Corp a company must:
- complete the B Impact Assessment (BIA);
- meet the legal requirements;
- score at least 80/200 on the BIA for governance, environment, community, customers and workers; and
- be able to demonstrate that it:
- generated the majority of its revenue from trading;
- competes in a competitive market place;
- is NOT a charity;
- is NOT a public body or otherwise majority owned by the state.
B Corp certification takes approximately six months to achieve (depending on the size and complexity of the business structure) and annual certification fees start at £500.00.Read more about B Corps here: https://bcorporation.uk/about-b-corps
How can Freeths help?
The Freeths corporate team has advised companies on successfully meeting the legal requirements required for B Corp certification.
The content of this page is a summary of the law in force at the date of publication and is not exhaustive, nor does it contain definitive advice. Specialist legal advice should be sought in relation to any queries that may arise.