Last updated January 2024
Frequently Asked Questions
Below are Impact Growth Partners’ answers to the questions we receive most often. Our responses are adapted from information from B Lab (www.bcorporation.net) and our experience working with companies through the B Impact Assessment and B Corp Certification process.
B Lab is also a great resource for information about the certification process - you can find more details here.
Still have questions? Don’t hesitate to reach out to us at info@impactgrowthpartners.com.
What is a Certified B Corp?
B Corps are for-profit companies certified by the nonprofit B Lab that meet the highest standards of social and environmental performance, accountability, and transparency. There are currently more than 8,100 Certified B Corps across the globe from 95 countries, across 161 industries. B Corps have one unifying goal: to redefine success in business.
How do you become a B Corp?
To achieve B Corp Certification, companies must complete a very thorough audit of their business practices, policies, and impact in each area of their organization. These areas include their governance, workers, relationships with the community, environmental footprint, suppliers, and customers. If the company achieves a certain score and makes it through a rigorous verification process, it then becomes part of the B Corp community and can use the B Corp logo.
What are stakeholders?
B Corps aim to build a more inclusive economy. Stakeholders are anyone or anything impacted by a company’s business decisions such as workers, customers, suppliers, shareholders, community members and others.
A critical component of the B Corp certification process is identifying who your stakeholders are and the various ways your company relates to each one. IGP can help with this process.
What is the difference between a B Corp and Benefit Corporation?
A Benefit Corporation is a legal entity whereas a B Corporation is a certification, similar to Fair Trade in coffee or LEED in buildings.
The goal of B Corp Certification is to ensure a company takes into consideration all stakeholders in making decisions. However, current corporate law requirements are based on the concept of shareholder primacy which requires managers/boards to make decisions based on the impact on shareholders. In order to be a Certified B Corp, a company must adopt legal language in its operating documents to reflect a commitment to all stakeholders.
A Certified B Corp has a certification that is conferred by the nonprofit B Lab. A B Corp certified company meets the highest standards of social and environmental impact and makes a legal commitment to consider all stakeholders. It is not a legal entity, however. Any for-profit company in any country with any legal designation can pursue B Corp Certification.
A Benefit Corporation is a U.S. corporate form, taxed like a C-Corp or an S-Corp that has a higher level of accountability, transparency, and purpose. It is a legal entity that has protection and permission to consider its impact on all stakeholders, not just shareholders. Benefit Corporation status is available in 37 states in the United States. See www.benefitcorp.net for more information.
Businesses located outside of the United States, those located in states without Benefit Corporation legislation, and those with other corporate forms including the US-LLC, do not need to change their legal form to become a Certified B Corp. Rather, they are required to update their Operating Agreement with a commitment to honor all stakeholders in decision-making, not just shareholders. B Lab provides this language for all geographies.
The legal requirement depends on a company’s corporate form and state/country of incorporation. See legal requirements for more information.
What is the B Impact Assessment and what operational areas does it cover?
The B Impact Assessment is a free, publicly-available tool that’s administered by the nonprofit B Lab. As B Lab states, the B Impact Assessment is the “most credible tool a company can use to measure its impact on its workers, community, environment, and customer.”
The assessment and review delves into 5 sections:
Governance/transparency (what is your structure, is there diversity within this structure/on your boards, revenue, profit, whistleblower policies, accountability, etc.)
Workers (hiring practices, benefits for your employees, employee documents/policies, diversity within your staff, etc.)
Community (charitable giving practices, relationship with suppliers, relationship with the community, Diversity Equity and Inclusion, etc.)
Environment (tracking of waste, recycling programs, impact on the environment, etc.)
Customers (relations with customers, warranty/return programs, communication with, etc.)
To achieve B Corp certification, you must score at least 80 out of 200 points on the B Impact Assessment.
The company must then proceed with the rigorous evaluation process with B Lab.
How long does it take to complete the certification process?
The time a company needs to complete the B Impact Assessment, achieve the minimum score, and submit it for review by B Lab is highly variable. Once a company submits its assessment, the certification process typically takes between 6-12 months.
Once certified, you can use the B Corp logo and join the community of more than 8,100 certified B Corporations around the world.
Do I need a consultant to become b corp certified?
A company does not need to work with a consultant to achieve B Corp Certification. The assessment itself is free and if you have the discipline and time it is definitely achievable to do it on your own. However, the process is intense and many companies begin the process, get stuck or busy, and place B Corp Certification on the back burner.
Our consultants at Impact Growth Partners keep the clients on track and do a lot of the work so our clients can focus on running their business.
How much does it cost to be certified?
The B Impact Assessment is a free tool provided by B Lab.
It does, however, cost money to apply for and become a Certified B Corp; there is a one-time submission fee of $150, and an annual certification fee based on the company's annual sales. The fee starts as low as $2,000 and is paid directly to the nonprofit certifying organization B Lab, which helps B Lab maintain staff and standards. Your company may also be subject to additional costs depending on size and structure.
The certification fee is based on the certified B Corp’s annual sales, as noted below:
Taking the B Impact Assessment is free, but if you think it would be helpful to you to work with us, please contact us for an introductory call.
All of our engagements are highly customized to the size of the company and stage of growth, number of employees, management structure, etc.