In the business environment, we hear so much about the B-Corp. But what actually is a B-Corp, and how does this type of certification impact a company and/or organization?
B-Corp is short for B Corporation, which is a private certification allocated to a to for-profit company by the organization known as B Lab. In order to receive this certification and maintain it over time, a company needs to pass an online assessment that B Lab has developed to determine a company’s level of social and environmental performance.
At the heart of a B-Corp certification is the company’s influence over its surroundings and the ability for a company to make a difference in the social landscape and the environmental conditions in its area of operation. Once a company passes through the assessment and exhibits appropriate levels of social and environmental performance, they are required to form a plan of adherence to B lab governing policies and the certification is granted. A B-Corp certification is attainable for any legal business structure that wants to make an impact.
In the twenty-first century, sustainability in the social sector and in the environment are becoming of increasing importance. When a company is granted B-Corp status, it is a sort of identification with respect to the company’s focus on improving the global environment in all capacities. Any decisions within a B-Corp are made with societal and environmental impact in mind and with an understanding that the company’s goals are far beyond simply bettering the company.