Join Cultivation Center founder Amy Rosenblum and Kara Peck from the B Lab Community Team for a deep dive into the nuts and bolts of becoming a Certified B Corp including what to expect and the timeline for certification.
This presentation was given on January 27th, 2016.
How: Steps to Certification with Cultivation Center
1. Hosted by B Lab’s
Featuring:
Amy Rosenblum, Cultivation Center
Steps to B Corp Certification
with Cultivation Center
2. Poll:
How interested are you in B Corp Certification?
• I’m doing it
• Interested, but something is standing in the way
• I’m curious, but need to be convinced
• I’m a skeptic
• N/A
3. ▪ Review: What is a B Corp
▪ Certification Process
▪ Tips for Success
▪ Timeline
Agenda
4. What is a B Corporation?
Certified B Corporations are using the
business as a force for good.
• Over 1,500 companies in 42 countries
• B Corps meet higher standards of social
and environmental performance,
transparency, and accountability
• B Corps are Certified by the non-profit B
Lab
• B Corp is like fair trade, organic or LEED
certification but for the whole company,
not just a bag of coffee or a jug of milk
6. Cultivation Center
Better Business. Bigger Impact.
Connect and consult with community-minded businesses to
strengthen infrastructure and create impact.
● Strategy
● Leadership & Governance
● Community Building
● Social Impact
● Fundraising
Learn more about Cultivation Center at: https://www.bcorporation.net/community/cultivation-center
7. What is a B Corp?
Earn a verified score of 80
points on the B Impact
Assessment
Give the company legal
protection and permission to
consider all stakeholders.
Make a profile showing topline
performance on Bcorporation.net.
80+
To learn more, visit:
www.bcorporation.net/become-a-b-corp/how-to-become-a-b-corp
8. • A certification conferred by the
nonprofit B Lab.
• A company that meets a high
level of social and
environmental performance
AND makes a legal commitment
to consider all stakeholders.
• Any for-profit company in any
country can pursue certification.
Certified B Corporation
• A legal entity that has protection
and permission to consider its
impact on all stakeholders, not just
shareholders.
• Most benefit corporations are
required to create annual reports on
their positive impact.
• B Lab is an advocate behind the
legislation
Benefit Corporation
9. Benchmark performance
Attract and Engage Talent
Save Money and Access Services
Partner with Peers
B Corp Certification helps companies:
Show Leadership
Differentiate from Pretenders
Generate Press
Attract Investors
Watch the first webinar in this series:
www.bcorporation.net/videos/webinars
10. Why We Became a B Corp
● LLC didn’t do us justice
● Community
● Values alignment
● Access to our network
● Helped us live our values
● Differentiated our work
12. B Impact Assessment: Measuring What Matters
Governance
• Transparency
• Ownership
Workers
• Job Growth
• Compensation & Benefits
• Employment Practices
• Work Environment
• Employee Ownership
Community
• Suppliers
• Local
• Diversity
• Charity/Volunteerism
Environment
• Energy Use
• Facilities
• Supply Chain
• Manufacturing
+ Impact Business Models
• Direct Impact
Products/Services
• Targeting Underserved
Communities
• High Impact Supply Chain
13. Benchmark & Improve Performance
“The B Impact Assessment added a new twist to
our initiatives – it helped us understand where we
are in comparison to other companies.”
Rob Michalak
14. Maintain Mission
Adopting the B Corp legal standards:
• Bakes the values of the company into its
legal DNA
• Gives protection and permission to
consider non-financial stakeholders
(community, employees, suppliers,
environment)
• Ensures that mission can survive over time
15. Maintain Mission
Learn more about the legal requirements here:
http://www.bcorporation.net/become-a-b-corp/how-to-become-a-b-corp
16. • A certification conferred by the
nonprofit B Lab.
• A company that meets a high
level of social and
environmental performance
AND makes a legal commitment
to consider all stakeholders.
• Any for-profit company in any
country can pursue certification.
Certified B Corporation
• A legal entity that has protection
and permission to consider its
impact on all stakeholders, not just
shareholders.
• Most benefit corporations are
required to create annual reports on
their positive impact.
• B Lab is an advocate behind the
legislation
Benefit Corporation
18. • For-Profit Companies of Any Size
• Any Industry / Geography
• Customized assessment based on industry, size,
geography
• Any Legal Structure (sole proprietors, LLC’s,
Corporations, etc.)*
• Companies over 1 year old – special Pending B
Corp program for start-ups**
Who Can Become a B Corp?
*More on legal requirements and process for start-ups coming in a few minutes!
** For more on Pending B Corp, visit: http://www.bcorporation.net/become-a-b-
corp/how-to-become-a-b-corp
19. Poll:
What is your next step?
• Start or complete the B Impact Assessment
• Improve my score to be over 80
• Meet the legal requirement
• Complete documentation
• Engage my team internally
20. Process and Tips: Six-Step Plan
Step 1:
Get a Baseline
Step 2:
Engage Your
Team
Step 3:
Assessment Review
+ Documentation
Step 4:
Implement
Step 5:
Fine Tune
Step 6:
Celebrate and
Continuous
Improvement
Step 5:
Final
Documentation
Step 6:
Finalize
Certification
OR
21. Step 1: Get a Baseline
Timeline: 1.5 – 3 hours over 1 week
❑ Create a B Impact Assessment Login
❑ Take a first pass of assessment
❑ Review initial score
❑ See how you stack up compared to 20,000
+ that have taken the assessment
22. Step 1: Get a Baseline
• Visit www.bimpactassessment.net to get started
33. B Impact Assessment FAQ’s
• I am a sole proprietor – how do I get into the right track
of the assessment?
• We have a virtual office – how do I answer questions
related to our facilities?
• Our company has operations in more than one region
• Which year of data should I use when completing the
assessment?
Visit http://bimpactassessment.net/how-it-works/frequently-asked-questions for more FAQ’s
34. Steps for Start-Ups
• Start-Ups can apply for
Pending B Corp Status
• Take B Impact Assessment
prospectively
• Make legal change
• More on this in a few minutes!
• Pending status lasts for 1 year
Visit http://www.bcorporation.net/become-a-b-corp/how-to-become-a-b-corp for more info
35. Step 2: Engage Your Team
Timeline: Varies based on existing tracking
/ information
❑ Identify the right people to engage:
• Human Resources
• Operations
• Finance
❑ Explain Objectives and Benefits
❑ Assign Questions
❑ Update Your Assessment
❑ Start conversations about the legal
requirement
36. Documents to Gather
In some cases, it may be easier to gather information from your
team and respond to assessment questions yourself. The following
will be helpful for you:
✓ A payroll register/employee roster
✓ Employee handbook
✓ A list of our "significant suppliers," which we define as our top
80% of suppliers/vendors by dollar volume.
✓ A breakdown of revenue from our various products and services
✓ A P&L
✓ Any resource use tracking (energy, GHG's, water, etc.)
✓ Any sustainability / corporate social responsibility goals, reports,
progress tracking
Step 2: Engage Your Team
37. Step 3: Documents + Review Call
Timeline: 2-3 weeks, 90 minute call
❑ Submit Assessment for Review (90% complete)
❑ B Lab Staff will Schedule Call
38. Step 3: Documents + Review Call
Timeline: 1-2 hours
❑ Submit Operations
Documentation
❑ Examples:
- Employee handbook
- Breakdown of suppliers
by location
- List of board members
❑ Review Assessment, refine
score
39. Step 4: Implement
Timeline: Varies
❑ Use Action Plan and Best Practice tools within
the assessment to identify areas to improve
your score
❑ Start with the short term / easy to
implement items first
42. Steps 5 + 6: Fine Tune & Continuous Improvement
Fine Tune & Continuous Improvement
Timeline: Varies, 2-6 months on average
❑ If your score is below 80, use this opportunity to fine tune your plan to
improve your score and deepen impacts
❑ Celebrate success! Each action you take is moving you down the path toward
becoming a better company!
❑ Develop a timeline for certification & share with your team
43.
44. Step 5: Documentation
Timeline: 2-3 Weeks
❑ If your score is above 80,
congratulations! You’re ready to move
forward certification
❑ Upload additional documentation to
verify your score
❑ Finalize score with B Lab staff
45. Step 6: Finalize Certification
Timeline: 1-2 Weeks
❑ Understand your legal requirements
❑ Sign the term sheet and pay annual fees
46. Legal RequirementsLegal Requirements
❑ Determine your path based on corporate
structure and state of incorporation:
▪ Amend your governing documents OR
▪ Adopt benefit corporation status
Examples:
❑ LLC in the United States: Amend operating
agreement
❑ Delaware Corporation: Adopt Benefit
Corporation form within 2 years of certification
Learn more about the legal requirements here:
http://www.bcorporation.net/become-a-b-corp/how-to-become-a-b-corp
Step 6: Finalize Certification
47. Legal RequirementsTerm Sheet & Certification Fees
❑ Sign B Lab Term Sheet
▪ Certification term is 2-years
▪ Participate in on-site review if randomly selected (10% of Certified B Corps
randomly selected each year)
▪ Annual certification fees based on the tiered structure, as outlined below:*
Company Revenue Fee
$0 - $499,999 $500
$500,000 - $1,999,999 $1,000
$2,000,000 - $4,999,999 $1,500
$5,000,000 - $9,999,999 $2,500
$10,000,000 - $19,999,999 $5,000
$20,000,000 - $49,999,999 $10,000
$50,000,000 - $99,999,999 $15,000
$100,000,000 - $999,999,999 $25,000
$1B+ $50,000+
Step 6: Finalize Certification
48. Resources
▪ B Corp Press: http://www.bcorporation.net/news-media
▪ How to become a B Corp: http://www.bcorporation.net/become-a-b-corp/how-to-
become-a-b-corp
▪ Legal Requirements: http://www.bcorporation.net/become-a-b-corp/why-become-a-
b-corp/protect-your-mission
▪ FAQ for Investors & Directors: http://www.bcorporation.
net/sites/all/themes/adaptivetheme/bcorp/pdfs/faqs_investors_and_directors4.pdf
▪ Pending B Corp Certification for Start Ups: http://www.bcorporation.net/become-a-b-
corp/how-to-become-a-b-corp/steps-start-ups
▪ B Impact Assessment: http://bimpactassessment.net/
▪ Case Studies: http://bimpactassessment.net/case-studies
49. Next Steps
• Start the the B Impact Assessment:www.
bimpactassessment.net
• Learn more about the B Corp Certification: www.
bcorpororation.net
• Sign up for another webinar: http://bit.ly/1R038YK
• Have questions? Contact us at:
jessica@bcorporation.net or 610-293-0299
50. Join us.
Redefine success in business.
Help create the new economy.
Build a better business.
Compete to be not only
the best in the world,
but the best for the world.