Modern consumers increasingly want to support companies that look beyond profit and have made a genuine commitment to environmental and social responsibilities. One way to demonstrate this commitment to customers is to become certified as a B Corp.
In this guide, we’ll break down what a B Corp is, the benefits of becoming one, and how to get certified.
What is a B Corp?
B Corp, short for Benefit Corporation, is defined as a company that balances profit with public responsibility. Being a B Corp can elevate your standing with stakeholders looking for a company whose reputation matches their values.
A B Corp is an organizational certification and is recognized by B Lab standards. B Lab’s criteria demonstrate that your company balances profit with purpose. Becoming a B Corp allows you to benefit the public’s well-being while still growing as a company.
“It’s a great opportunity and set of goals to rally around,” said Stacy Pearl Dauber, Vice President of Wealth Management at Bailard. “The B Corp certification process energizes improvement and company culture, and is a wonderful opportunity across the board.”
To qualify as a B Corp, your business must have been in operation for more than a year. While not overly complicated, there are several steps you must complete in order to qualify, such as implementing a proper framework and completing a B Impact Assessment.
[Read more: Nonprofit vs. Not-for-Profit vs. For-Profit: What's the Difference?]
What is B Lab?
The process of becoming a certified B Corp is overseen by a nonprofit network called B Lab.
Since 2006, B Lab has promoted collective economic change by certifying B Corporations to meet rigorous social and environmental standards. To date, B Lab has certified over 9,000 companies across 102 countries, collectively representing over 848,000 workers, all united by a shared mission.
“B Corp Certification means that a company has met B Lab’s rigorous standards for social and environmental impact, made a legal commitment to stakeholder governance, and is demonstrating accountability and transparency by disclosing this record of performance in a public B Corp profile,” explained Jane Abernethy, Chief Sustainability Officer at Humanscale, a certified B Corp.
“The benefit of [this] independent, third-party validated certification … is breaking through misleading claims about sustainability and creating transparency, which we believe is essential to achieve real progress,” Abernethy added.
Advantages of a B Corp
A few of the top advantages of starting a B Corp are:
- Encouraging social responsibility. When your company is a B Corp, it holds you and your practices accountable for social and environmental responsibility. Consumers are increasingly interested in companies that follow sustainable business practices and want to be convinced of their social efforts. By adhering to B Corp standards that are made transparent, customers can see how the companies they support are making a difference.
- Attracting like-minded employees. Knowing your business is actively trying to make a positive social change will attract top talent looking to find meaning in their careers. B Corp certification validates a company’s employee-centric culture, which means you’ll be able to retain top talent as well. Emily McGarvey, Director of Sustainability for B Corp furniture retailer Room & Board, noted that, in a 2024 staff survey, “more than 90% of staff members shared they are proud to work at Room & Board and believe our organization will be successful in the future.”
- Cost savings. Registering as a B Corp can save your company money in the long run. You’ll have access to B Corp community data, which provides you with access to learn the most cost-effective means to be sustainable. Plus, the certification process helps companies identify needless and wasteful spending.
David Shove-Brown, Co-Founder and Partner at architecture and design firm //3877, said that pursuing B Corp certification has allowed the company to define not only its ethos, but how to stand behind it.
“Certification has been a great process for revisiting our goals, evaluating where we weren’t getting as many points as we would like to in one area or another, and opening up the discussion of how to evolve,” Shove-Brown added.
The benefit of [this] independent, third-party validated certification … is breaking through misleading claims about sustainability and creating transparency, which we believe is essential to achieve real progress.Jane Abernethy, Chief Sustainability Officer at Humanscale, a certified B Corp
[Read more: A Guide to Business Certifications for Small Business Owners]
How to apply for B Corp certification
The process of being certified as a B Corp involves several important steps. Below, we guide you through each stage.
Build the correct legal framework
Understanding the proper framework for a B Corp is critical to turning your company into a legally recognized B Corp. You must align your values with a framework that meets B Lab’s standards. Your framework will depend on your company’s:
- Size. Smaller companies tend to have simpler governance requirements.
- Location. Legal recognition for Benefit Corporations varies by country and state.
- Status. You must be operating for a minimum of one year before applying.
Complete the B Impact Assessment
Next, you’ll complete the online B Impact Assessment to evaluate how your business practices affect your stakeholders, such as customers, employees, and the community.
The five areas the assessment focuses on are:
- Community. How does your business support the local ecosystem?
- Workers. How do your employees benefit from working for your company?
- Customers. What positive impact do your products create, and are you transparent and ethical?
- Governance. Are you accountable to your mission while integrating your social and environmental goals?
- Environment. What is your overall environmental footprint?
Submit your assessment
The minimum assessment score is 80 out of 200 points. Once you reach this threshold, you can submit your B Impact Assessment for B Lab to review. You’ll pay a $150 application fee and must complete a risk review.
Sign the certification agreement
Once you’re approved, you’ll sign a B Corp Certification Agreement. Your B Impact Report will be generated by B Lab and included in the official B Corp Directory after you’ve received verification of your B Corp certification.
Will I need to recertify my business as a B Corp?
B Corps are required to recertify every three years to continually assess and improve their business practices and ensure compliance with B Lab’s standards. This process, which must be started six months before a business’s recertification date, requires companies to update their B Impact Assessment and validate their new B Impact score.
Businesses must also recertify when the company changes ownership or following an initial public offering.How B Corp status can strengthen your brand
Becoming a B Corp is a powerful asset when it comes to marketing your business. It goes beyond your word by marking a legal commitment to benefiting the community. You’re no longer asking customers to trust you; you’re proving they can through your time, financial investment, and a public declaration.
B Corp status strengthens your brand’s reputation by building trust. It creates a clear differentiation between you and your competitors by making your values public. Purpose-driven consumers respond to brands that align with what matters to them, and a verified B Corp certification gives them something tangible when choosing a company to support. This values-based brand identity can foster long-term customer relationships and drive sustainable growth.
Well-known B Corp businesses
Businesses with philanthropic missions come in all sizes, from small startups to large corporations. Here are a few B Corps you might recognize:
- Ben & Jerry’s. Ben & Jerry’s is one of the first companies to value its social mission as highly as its financial goals. The ice cream brand achieved B Corp certification in 2012 and is committed to sustainable product sourcing, advocacy, and promoting shared success.
- New Belgium Brewing Company. New Belgium Brewing Company was certified in 2013 and is famous for its employee-owned model and commitment to renewable energy. The company regularly donates to environmental causes and advocates for sustainable brewing practices.
- Patagonia. Patagonia is a forerunner in corporate responsibility, becoming a B Corp in 2011. The outdoor clothing and gear brand continues to lead in environmental activism, ethical manufacturing, and fair labor.
- TOMS. A B Corp since 2018, TOMS is committed to improving lives through sales by dedicating a third of its profits to charitable causes. In 2023 alone, the footwear company allocated $1.7+ million to mental health support, gun violence advocacy, and increased access to opportunities.
- Uncommon Goods. Uncommon Goods, certified as a B Corp since 2007, supports nonprofits like American Forests and the International Rescue Committee through its Better to Give program. The online retailer donates at least $1 from each purchase to the program, contributing over $3 million in support for nonprofits.
- Warby Parker. Eyewear giant Warby Parker has been B Corp certified since 2015. The organization combines social impact with its unique style through its “Buy a Pair, Give a Pair” program, which provides eyewear to those in need worldwide.
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Is a B Corp right for your business?
Before you take the first steps to become a B Corp, first check to make sure certification is available in your state. Over 40 states have either passed or proposed benefit corporation legislation.
Then consider your motivation and goals for obtaining B Corp certification, and whether you can meet and sustain the requirements. While B Corp status can certainly be a competitive advantage, it isn’t the right move for every business.
“Certification is not a series of checkboxes, something you can knock out in one day,” Shove-Brown said. “There is extensive work and due diligence involved in meaningfully engaging throughout the process, identifying where you are as well as where you want to go.”
Miranda Fraraccio contributed to this article. Some interviews were conducted for a previous version of this piece.
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