How to Become a B Corp
Submitted by Anonymous on Fri, 2011-03-18 17:10
Did you know that in just over four years, there are now 394 certified B Corps around the United States? From single proprietorships, to small businesses, to large corporations, people are clamoring to be identified as part of a community committed to and working towards ethical social and environmental standards.
And it’s not just companies. Yale School of Management is repaying loans for MBA students who go to work for B Corp certified companies after graduation.
So what exactly does it take to become a certified B Corporation? B Lab and Social Venture Network hosted an afternoon lunch this past Wednesday to introduce themselves to the New York community. Andrew Kassoy, also Echoing Green Board Member, and B Corp staff gave us the inside scoop (but really, it’s all up on their website). Turns out, it’s quite painless, easy to manage, and the team is available to support you along the way. The basics:
- Complete the online assessment form. If you have all the information at your fingertips, it should take about 60-90 minutes. If you receive a composite score of 80 or above, you can move to step
- Contact B Lab to set an up Assessment Review. On this call, the B Lab team member will help you make sure that you’ve completed your assessment correctly and answer any questions. This is also an opportunity to talk about your company’s best practices and efforts to set high social and environmental standards.
- Begin incorporating B Corp legal framework into your governing documents. This will require updating your articles of incorporation and/or bylaws.
- Make it official. Complete and submit your term sheet agreeing to B Corp’s expectations and pay a fee based on your annual revenue. (For revenue under $2 million, the fee is only $500 a year)
- Once you are certified, you are required to submit your amended articles and additional supporting paperwork.
Your B Corp certification lasts for a two year term, with the fee collected on an annual basis. Beware, though, B Lab randomly selects 10% of B Corps for onsite visits each year to ensure that you are maintaining your standards and keeping up with best practices.
Between GIIRS assessments, policy and advocacy work, and a consumer campaign to tell consumers why they should spend their money at B Corps, B Lab is working hard to create a new sector of the economy which uses the power of business for social good. Are you going to be a part of it?
