B Corporation (or B Corp) Certification is a designation that shows a company is meeting high standards of verified performance, accountability, and transparency.
B Corp companies have a legal obligation to consider the impact of their decisions not only on their workers, customers, and suppliers, but on the community and the environment.
B Corps receive certification from B Lab, a non-profit organization that ensures these businesses:
- Demonstrate high social and environmental performance
- Make a legal commitment to accountability
- Exhibit transparency
If they meet these requirements, they are eligible to receive their B Corp Certification. The exact pathway to obtaining certification varies depending on the size and annual revenue of the company. Other factors that determine the application process include sector, industry, and ownership structure. Becoming a B Corp in Canada shows a commitment to environmental conservation, sustainability, and social fairness. Many Canadians strive to uphold these values, and prefer to work with companies that not only embrace these ideals, but incorporate them into their business models. For companies looking to pursue B Corp Certification, there are many benefits.
Do good by pursuing sustainability, ethical sourcing, and initiatives to benefit communities and the planet
By becoming a B Corp, you’re not just saying you’re doing good — you’re implementing systems and processes that have a tangibly positive impact on the world. You’re committed to behaving in an ethical manner to benefit society, build stronger communities, and protect the environment.
Attract customers who prefer to patronize businesses that align with their values
Consumers are increasingly conscious about the businesses they support with their money. They consider factors beyond price and product quality, such as value alignment, trust, and positive brand image. Becoming a B Corp signifies to these customers that your values are in alignment, which increases your trust and credibility. Customers who support a company because of its values are also more likely to be loyal because they’re supporting more than a product.
Engaged and motivated employees
As with consumers, employees are also increasingly conscious of working for companies that are both ethical and sustainable. Having B Corp Certification helps attract skilled employees who value working for ethical employers. Making employment more purposeful than simply creating profit helps employees become more engaged and passionate about the work they do. Additionally, B Corps tend to offer fair wages and benefits, as well as better working conditions — which contributes to employee wellbeing, and
fosters a sense of value.
Access to a network of green investors
Green investors are those who invest in companies that are committed to positive environmental and/or social change while also generating profits. They invest in companies that align with their values. Companies that have their B Corp Certification signal to green investors that they have met rigorous social and environmental standards, which helps generate trust and credibility. It also shows investors that the company is transparent. In addition to attracting green investors, a B Corp may also be eligible for specialized funds that are given exclusively to businesses that demonstrate environmentally-sustainable and socially-responsible values.
Create opportunities for collaboration
As a B Corp, you may have access to other B Corps or organizations with similar values to your own. This creates opportunities for partnerships that enable cross promotion, collaboration, and shared marketing strategies. By partnering with these companies, you’ll expand your customer base, while helping another organization that’s also doing good in the world.
Triple Bottom Line focus (people, planet, and profit)
The Triple Bottom Line is a theory of business that states businesses should focus on three bottom lines (people, planet and profit), as opposed to one bottom line (profit). B Corps show they are committed to success beyond financial profit by recognizing the interconnectedness of economy, society, and the environment.
Connect to a global movement
By connecting to a global movement and sharing knowledge with other B Corps, your business will benefit from:
- The enhanced reputation that being part of a global movement can bring
- Broader access to new geographic areas, markets, and consumers that prioritize sustainability
- Increased resilience and longevity
- Participation in global initiatives, which amplify messages
- An expanded network for support, guidance, and collaboration B Corps become part of a global network that provides them with resources and opportunities they may not otherwise have had access to.
Ultimately, more profit
Becoming a B Corp is typically guided by a genuine dedication to social and environmental responsibility. However, businesses that receive their B Corp certification may also experience an increase in profits due to higher levels of customer loyalty, an ability to attract and retain skilled workers, market differentiation, risk mitigation,
operational efficiencies created by embracing sustainable practices, and access to more capital.
Next Steps
Becoming a B Corp signals your dedication to sustainability, responsibility, and transparency. If you’re interested in becoming a B Corp, start with an understanding of the philosophy behind B Corps and the basic principles. You can also take a B Impact Assessment, which will give you an idea of where your company currently stands
in terms of its environmental and social performance. Use this information to determine where you can make improvements to your business, processes, and practices to become more sustainable and meet certification standards. Once you and your stakeholders have determined you want to obtain certification, complete the full assessment
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This content is for general information purposes only. It is not to be relied upon as financial, tax, or investment advice or guarantees about the future, nor should it be considered a recommendation to buy or sell. You should consult your own professional advisor for specific financial, investment, and/or tax advice tailored to your needs to ensure that individual circumstances are considered properly and action is taken based on the latest available information.
