Breaking Down B Corps

What is a B Corporation? What does the B stand for?

The B stands for “benefit”. Benefit corporations are traditional for-profit corporations that have committed to higher standards of purpose, accountability and transparency and are required to consider all stakeholders in their decisions

Purpose: Benefit corporations commit to creating public benefit and sustainable value in addition to generating profit. This sustainability is an integral part of their value proposition.

Accountability: Benefit corporations are committed to considering the company’s impact on society and the environment in order to create long-term sustainable value for all stakeholders.

Transparency: Benefit corporations are required to regularly report to shareholders on how the company is balancing these interests.

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Certified B Corporations vs. Benefit Corporations

Not all benefit corporations are certified. Typically the abbreviation of “benefit” to “b” indicates that a company is certified based on the standards defined and regulated by the non-profit company, B Lab.

Benefit corporations may choose to be certified as B corporations as well, but there is no requirement to do so. Companies of any size, structure, or location may be certified as B Corporations.

Companies with current Certifications from B Lab are granted permission to display the Certified B Corporation emblem on their digital and physical brand collateral. To see the latest list of Certified B Corporations, view the B Corp Directory.

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What are the required standards to maintain B Corporation Certification?

To be a Certified B Corp, a company is legally required to consider the impact of their decisions on their workers, customers, suppliers, community, and the environment and therefore, must meet a certain score on the B Impact Assessment, which measures a company’s impact on its workers, community, and environment.

The nonprofit company, B Lab, which serves a global movement of people using business as a force for good, manages initiatives such as: B Corp Certification, administration of the B Impact Management programs and software, and advocacy for governance structures like the benefit corporation. Learn more About B Lab.

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Other Key Differences:

Benefit Corporations

• Self-reported performance
• While many benefit corporations use the B Impact Assessment, benefit corporations do not need to reach a particular score, nor have their performance verified or audited by B Lab or anyone else
• Only available to corporations in 30 U.S. states and D.C.* (*Oregon and Maryland offer benefit LLC options)
• Requires state filing feeds from $70-$200

Certified B Corporations

• Legally required to achieve minimum verified score on B Impact Assessment
• Recertification required every three years against evolving standard
• B Lab is the certifying body and supporting 501c
• Available to every business regardless of corporate structure, state, or country of incorporation
• B Lab certification fees from $500 to $50,000/year, based on revenues