It isn’t easy becoming a B Corp and nor should it be. Those 'gold-standard' companies who do certify have demonstrated that they are committed to being a better business, focused on stakeholders, society and the environment. It takes commitment, time and yes, money, but most importantly, a culture that values putting people and the planet in line with profit.
Many SMEs believe that it is out of their reach, but actually, it's the reverse. Small companies around the globe are certifying every day as they are agile enough and connected to a vision that does not hold shareholder primacy as their 'raison d'etre' . They 'walk the talk' and generally find it easier to integrate social and environmental governance into the fabric of their business over the global monoliths of the world.
Who can certify?
Almost any for–profit company that has been in operation for at least 12 months.
It is worth noting that some categories of businesses cannot apply for certification due to the nature of their operations however, they can use the BIA to assess their business model. To find out more, contact us at info@realisechange.ca or here
All companies who apply must be able to demonstrate their operational and stakeholder impact as detailed in the Business Impact Assessment (discussed below).
Independently operating businesses (including some subsidiaries) are eligible however, brands and divisions of larger entities are not.
The certification path varies depending on the size, shape and sector of the organization. Still, most follow the standard approach which is for organizations with less than $100M USD in annual revenue.
Those in operation for less than 12 months and larger enterprises follow different paths – please contact us for further details.
The Process
I'm not going to lie, the process is detailed and lengthy, however, it should be viewed as a fantastic opportunity to audit current operations and identify opportunities for change and growth.
1. Get Buy-In and gather your B Team. Certification is a real company commitment and will likely require several governance changes which cannot happen without C-Suite buy-in. This is fundamental for success. Likewise, building a highly effective and aligned 'B Team' is essential for ensuring that each area of the business is covered. All of these individuals need to understand and be aligned with the desire for B Corp certification. Typically a 'B - Lead' is appointed, this can be an internal resource who oversees the project but increasingly, outside resources such as Realise Change are hired to take on this role and manage the process.
2 . Business Impact Assessment (BIA). Once the B Team is in place, the next step is to complete the BIA. This is a free assessment on the B Lab website that analyses the following areas of a business:
Governance Structure
Workers
Community
Environment
Customers
It is worth taking time to complete this step as it is fundamental to understanding how the business operates.
The overall aim of the BIA is to reach the 80-point threshold. We prefer companies to reach 86 points as some points are invariably lost during the evaluation process. It is unlikely that 80 points will be achieved on the first try, but the BIA should be used to identify areas for improvement.
3. Legal structure. Each company must adopt a legal structure that embraces all stakeholders (not just shareholders). This typically entails an amendment to incorporation articles but varies by country and province. Contact us to find out more.
4. Submit application. Once 80 + points have been achieved, the company then submits their BIA for verification and evaluation. There is a submission fee of $150 USD (at the time of writing).
5. Verification & Evaluation. This process is run via B Labs and involves a member of B Labs analyzing and having conversations with the B Team about the business's operations, policies and practices. Companies will need to demonstrate that their policies are used in practice and that they operate in the manner in which they say they operate. This is all about 'walking the talk'. This can be a lengthy process and involves several evaluation steps.
6. B Lab provides final decision. If a company does not certify, they are given a reason for this and suggestions for improvement. There is no limit to the number of times that a company can apply although sufficient time between applications should occur to ensure that real change has been possible.
If a company does certify, it will need to sign the B Corp agreement and pay the certification fee.
How much does it cost?
After the initial submission cost of $150 USD, there is an annual fee that is determined by the company’s annual revenue. This generally ranges from $2000 USD for companies up to $5M USD to $50,000 USD per annum for companies around $100M USD in annual revenue.
A specific company’s annual fee can be found on the company’s BIA website under Certification Requirements – Certification Fees.
If you want to find out more or have any questions, please contact us.
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