Take a deep dive into the nuts and bolts of becoming a Certified B Corp including what to expect, the timeline for certification, and how you can prepare.
This presentation was given on July 14th, 2015 by Kara Peck, Katie Oberwager, and Jessica Friesen from B Lab.
3. Poll:
How familiar are you with the certification
process?
• I’m an expert
• Very familiar
• Somewhat familiar
• Not familiar at all
4. ▪ Review: What is a B Corp
▪ Certification Process
▪ Tips for Success
▪ Timeline
Agenda
5. What is a B Corporation?
Certified B Corporations are using the
business as a force for good.
• Over 1,300 companies in 41 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
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
non-profit 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
11. 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
12. 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
13. “The B Impact Assessment has been invaluable
to Plum in elevating our positive impact as a
responsible business. It helps us measure our
efforts, celebrate accomplishments, and
identify areas for continuous improvement.”
Neil Grimmer, Co-founder & CEO, Plum Inc.
Benchmark & Improve Performance
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
non-profit 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 the biggest challenge you’re facing in the
B Corp Certification process?
• Engaging my team internally
• Finding time to complete the B Impact Assessment
• Completing documentation requirements
• Meeting the legal requirement
• Other
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
32. 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
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
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
38. 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
41. 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
42.
43. Step 5: Final 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
44. Step 6: Finalize Certification
Timeline: 1-2 Weeks
❑ Understand your legal requirements
❑ Sign the term sheet and pay annual fees
45. 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
❑ New York Corporation: Adopt benefit
corporation within two years or amend articles of
incorporation.
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
46. 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
*Fee chart represents the most up to date pricing structure, applicable for companies who certify on or after
October 1, 2015. Companies who certify before this date should refer to our current pricing structure available
at www.bcorporation.net
47. 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
48. Next Steps
• Start the the B Impact Assessment:
www.bimpactassessment.net
• Learn more about the B Corp Certification
www.bcorpororation.net
• Have questions? Contact us at:
jessica@bcorporation.net or 610-293-0299
49. 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.