What is a Certified B Corporation?
Public benefit corporations and non-profit organizations are two types of businesses that have an extra emphasis on serving the community. However, in addition to these two entity types, aspiring business owners can also consider the Certified B Corporation.
What is a Certified B Corporation?
A Certified B Corporation (or B Corp) is a for-profit company that must consider how its business decisions will impact its employees and its community rather than solely focusing on maximizing shareholder value. Forming a Certified B Corporation is a great way to showcase your company's commitment to social and environmental objectives while still generating profit.
What is B Lab?
B Lab is a nonprofit organization that certifies companies as Certified B Corporations (B Corps). Founded in 2006, B Lab developed an assessment that is used to measure a company’s social and environmental performance. Based on a few key metrics, such as how companies treat their employees, how they engage with their community, and their impact on the environment, B Lab will issue a B Corp Certification. From there, they help maintain the B Corp community, which includes thousands of companies committed to responsible business practices.
How to Get a B Corp Certification
To get a B Corp certification, a company must complete a B Impact Assessment, which involves filling out a detailed questionnaire on the B Lab website. Your business will need to score at least 80 out of 200 points on this questionnaire to be eligible for B Corp status. If you don’t meet the 80-point threshold initially, B Lab can provide guidance to help you improve and reapply. Once you meet the threshold, you can submit the assessment for review. If your company meets all of the requirements, you’ll have the opportunity to sign the B Corp Agreement and pay an annual certification fee based on your company’s revenue.
To maintain certification, you’ll usually need to complete the B Impact Assessment again every three years.
How Companies Are Assessed by B Lab
You can measure your company’s social and environmental impact on your own, using B Lab’s free, confidential B Impact Assessment. The B Impact Assessment has questions across five main categories:
- Governance
- Workers
- Community
- The Environment
- Customers
The questions posed on the Impact Assessment will be tailored to the number of employees you indicate, so owners of a small business can take the assessment as well. Thirty minutes can give you a snapshot of your company’s impact, which includes a basic summary of which things your company excels at and which it could improve upon. A few hours will provide a more comprehensive impact report, which includes a holistic assessment of how your company performs on a single impact topic.
Within the B Impact Assessment, you can also access improvement tools, best practices guides, and case studies to help create a customized plan for your company’s improvement. B Lab’s list of standards and benchmarks can also help you reach your improvement goal. Since the Impact Assessment measures current and previous business performance rather than planned intentions, start-ups tend to utilize it only as a learning tool. Since they haven’t yet existed long enough to measure their impact, start-ups can instead weave the appropriate practices into their companies for future success.
Benefits of B Corp Certification
B Corp Certification offers a range of benefits beyond just branding or reputation. Here are some of the most important advantages:
- Brand Credibility - People care about the sustainability issues of the corporations they work for, work with, and buy from. Consumers are more likely to support a brand that they can trust, and B Corp Certification serves as a strong trust signal.
- Investor & Stakeholder Appeal - This certification helps attract impact investors and conscious consumers who want to support ethical business practices.
- Generate Press - The certification acts as a public endorsement of your company’s commitment to high social and environmental standards.
- Attracting Talent - Many job seekers, especially young ones, prefer to work for mission-driven companies. Certified B Corps help present your company as one that focuses on progressive business practices.
- Access to a Global Community - Certified B Corporations form a respected network with thousands of like-minded companies. Members of this group will be able to collaborate and share best practices with one another.
Benefit Corporation vs B Corp
The terms “benefit corporation” and “B Corp” are often confused, but refer to two different things. A B Corp (or Certified B Corporation) is a status granted by the nonprofit B Lab. Any for-profit company, regardless of legal structure, can apply. On the other hand, a Benefit Corporation is a legal status where the company is legally required to pursue a public benefit in addition to profit.
While B Corp certification is a voluntary third-party credential, becoming a benefit corporation involves legally registering your business with the state. However, the two are not mutually exclusive. A company can be both a Certified B Corp and a legally registered benefit corporation.
How Is a B Corp Different Than a Corporation?
Any corporation can become a B Corp, but this change can have serious impacts on how the company is run. While both corporations and B Corps are for-profit businesses, traditional corporations are generally focused on maximizing shareholder value. In contrast, B Corps commit to balancing profit with a broader purpose, as they are legally and ethically bound to consider the impact of their decisions. In other words, B Corps need to consider their employees, communities, customers, and environment as well as their shareholders.
Is a B Corp Right for My Business?
If you're committed to using your company as a force for good, a B Corporation Certification may be right for you. At the core of their tenets, B Corps are all about balancing profit with purpose. If you want to make a social impact and want to stand out to mission-driven customers, B Corp status can help reinforce and communicate those values. However, it’s worth noting that the certification process is somewhat time-consuming, so it’s best suited for companies willing to invest the time and resources to meet and maintain these standards.
Today, there are thousands of Certified B Corporations in nearly 100 different countries. You can be the next to join the growing community by forming a business on our website, then applying for B Corp status with B Lab. Also, feel free to contact our team to learn more about business formation and the Certified B Corp status.
*Disclaimer*: Harvard Business Services, Inc. is neither a law firm nor an accounting firm and, even in cases where the author is an attorney, or a tax professional, nothing in this article constitutes legal or tax advice. This article provides general commentary on, and analysis of, the subject addressed. We strongly advise that you consult an attorney or tax professional to receive legal or tax guidance tailored to your specific circumstances. Any action taken or not taken based on this article is at your own risk. If an article cites or provides a link to third-party sources or websites, Harvard Business Services, Inc. is not responsible for and makes no representations regarding such source’s content or accuracy. Opinions expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.
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There are 2 comments left for What is a Certified B Corporation?
slot gacor said: Tuesday, May 27, 2025This article provides an incredibly clear and in-depth explanation of what a Certified B Corporation is. The author is able to make complex concepts easy to understand, while emphasizing the social, environmental, and ethical values ??of business. This isn’t just information—it’s a call to action to be a more conscious consumer and support companies that care about the world. Educational, thought-provoking, and very relevant in the age of sustainable business! ????
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