In the ever-evolving landscape of the global economy, B Lab emerges as a nonprofit powerhouse on a mission to reshape the way businesses operate. Their vision extends beyond profit margins, aiming to create a positive impact on people, communities, and the planet at large. The B Corp movement, spearheaded by B Lab, is not merely about certifying companies; it’s a revolutionary force working to overhaul economic systems for a more inclusive, equitable, and regenerative future.
Back in 2006, B Lab laid the foundation with a bold idea – a conviction that a different kind of economy was not just possible but imperative. They envisioned a stakeholder-driven model where business could be a catalyst for change. B Lab became renowned for certifying B Corporations – companies that not only meet but exceed high standards of social and environmental performance, accountability, and transparency.
But the B Corp movement is not confined to certification; it’s a call to action to change the very rules of the game. B Lab orchestrates the creation of standards, policies, tools, and programs that aim to shift the behavior, culture, and structural foundations of capitalism. The mobilization of the B Corp community is key, fostering collective action to tackle society’s most pressing challenges.
The core problem identified by B Lab lies in the current economic system’s failure to fulfill its potential for positive impact. Legal systems, business behavior, and corporate culture are identified as key aspects reinforcing the problematic role of business. This results in three types of negative impacts – structural social and economic inequality, environmental degradation, and a decline in individual well-being.
The solution? B Lab advocates collaboration with movements, policymakers, activists, and organizations. By driving the adoption of their standards, certifying and engaging businesses, amplifying stories of business as a force for good, catalyzing policy change, and developing a network of communities for change, B Lab aims to transform the global economy into a more inclusive, equitable, and regenerative system.
Multifaceted Standards
B Lab’s standards encompass a multifaceted approach, addressing various aspects of corporate impact. Among these, the B Impact Assessment stands out as a comprehensive tool designed to measure, manage, and enhance a company’s positive impact on workers, communities, customers, suppliers, and the environment. Crucially, a verified score of 80 on this assessment serves as a prerequisite for the coveted B Corp Certification.
The risk standards delve into the potential negative impacts associated with a company’s industry and practices, forming a crucial element in determining eligibility for B Corp Certification. For multinational giants generating over $5 billion in annual revenue, additional baseline requirements are in place to acknowledge the heightened societal obligations of these industry titans.
The commitment to excellence doesn’t end with the establishment of standards; B Lab is dedicated to a process of regular updates and improvements. The specific mechanisms may vary, but all development projects are grounded in rigorous research and input from a diverse array of stakeholders.
Independently governed by B Lab’s Standards Advisory Council and Board of Directors, the standards undergo meticulous scrutiny and enhancement. External stakeholders and various Working and Advisory Groups contribute to the governance, ensuring a well-rounded perspective.
B Impact Assessment Standards: A Closer Look
The B Impact Assessment Standards, last updated in January 2019, undergo continuous refinement. Oversight from the Standards Advisory Council ensures that updates are carefully assessed over a 12- to 18-month period. This thorough process involves user feedback, research, stakeholder engagement, and identification of priority areas for improvement. A 60-day public comment period adds an extra layer of transparency and accountability to the evolution of these standards.
Beyond the B Impact Assessment, the risk standards add another layer of scrutiny. These standards include a comprehensive evaluation of a company’s eligibility for B Corp Certification, incorporating reviews, background checks, and analyses separate from the B Impact Assessment. The goal is a holistic assessment of a company’s overall performance, ensuring a balance between positive practices and risk mitigation.
Multinational Company Standards: Recognizing Scale and Influence
Large companies, defined as those generating over $5 billion in annual revenue, face additional scrutiny through the recommendations of the Multinational and Public Markets Advisory Council. Acknowledging their scale and influence, these companies are subject to specific minimum positive practices, extending beyond the B Impact Assessment and risk assessment screens.
B Lab’s commitment to transparency is evident in their positions on controversial industries and practices, developed as needs arise, and guided by the Standards Advisory Council.
In conclusion, the continuous evolution of B Lab’s standards reflects not only a commitment to excellence but a dynamic approach to addressing emerging challenges and opportunities in the ever-evolving landscape of responsible business practices.
The B Global Network, comprised of global, regional, and national organizations, drives the B Corp movement at the local level. These organizations grow, engage, and mobilize their regional B Corp communities, reshaping local economies to prioritize people and the planet. Together, they breathe life into the global theory of change, driving policy changes, amplifying credible stories, and transforming the behavior of businesses in their regions.
Source: bcorporation.net (text and graphics, cover photo)
