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To be a Certified B-Corporation (or B Corp) means a for-profit company has been verified by a non-profit called B Lab to meet high standards of social and environmental performance, transparency, and accountability.

In practical terms, it is like a “Fair Trade” or “Organic” label, but for the entire business rather than just a single product. It signals that a company is legally committed to balancing profit with purpose.

Here is what it “really” means in three key areas:

1. Verified Performance (The “80 Points” Threshold)

Unlike companies that simply claim to be “green” or “socially responsible,” a B Corp must prove it. They undergo a rigorous B Impact Assessment that scores them on five pillars:

• Governance: Mission, ethics, and transparency. 

• Workers: Pay, benefits, training, and ownership. 

• Community: Diversity, charitable giving, and supply chain. 

• Environment: Emissions, resource use, and sustainability. 

• Customers: The impact of their product or service on the user. 

A company must score at least 80 out of 200 points to certify. This is difficult to achieve; most ordinary businesses score around 50.

2. Legal Accountability (The Stakeholder Shift)

This is often considered the most significant change. To become a B Corp, a company must amend its legal governing documents (like its Articles of Incorporation). 

• Traditional Corporation: Legally required to prioritize shareholders (profit) above all else. 

• B Corp: Legally required to consider the impact of their decisions on all stakeholders (employees, customers, the environment, and the community), not just shareholders.

• Note: This protects the company’s mission even if it is sold or if leadership changes.

3. Public Transparency

A B Corp cannot hide its flaws. To maintain certification, the company must publish its B Impact Report on the B Lab website. This allows the public to see exactly where the company excels and where it struggles, preventing “greenwashing” (marketing oneself as sustainable without the data to back it up). 

Important Distinction: B Corp vs. Benefit Corporation

• Certified B Corp: A certification awarded by the non-profit B Lab (like a PhD for a business).

• Benefit Corporation: A legal tax status or corporate structure recognized by US states (like an LLC or C-Corp).

• You can be one without the other, though many companies are both.

For more information on B-Corporations, and how your organization can be one too, see https://www.bcorporation.net/en-us/