An Introduction To B Corp: Good For Business, Good For The World

By Rebecca Trudgett, Founder – Switchfoot Accounting
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What does “success” look like for your business? Chances are, you may be one of the growing number of business owners who are looking beyond profit as the only end goal. You need to make profit of course, but it’s likely you want your business to do some good in the world.

Switchfoot Accounting recently achieve our B Corp certification, joining our partner business Switchfoot Wealth, who have been certified for a few years.

Awareness of B Corp is growing fast; you’ve probably heard how it promotes and accredits good business practices. You’ll have seen the logo on grocery packaging, website homepages and social media posts.

But what exactly is the value of B Corp, as a certification and as a ‘movement’?

Is it worth the (not inconsiderable) effort of seeking and maintaining a certification, and of getting involved with the community?

Spoiler alert: we think it’s a definite “yes” – but let’s explore it in more depth…

First, what exactly is a B Corp?

What is a B Corp?

B Corp certification, administered by the non-profit B Lab, is a rigorous verification of a company’s commitment to social and environmental performance, accountability, and transparency.

It signifies that a business is meeting high standards across various areas, including governance, worker well-being, community engagement, and environmental impact.

Businesses traditionally prioritise shareholder returns above all else. In contrast, B Corps are legally required to consider the impact of their decisions on all stakeholders – employees, customers, suppliers, the community, and the environment.

At the heart of the B Corp certification process lies the B Impact Assessment (BIA). This comprehensive tool evaluates a company’s performance across five key impact areas.

It’s not just about having a recycling program – or some other token scheme(s). The BIA delves deep into a company’s practices, from its supply chain and employee benefits to its community involvement and environmental conservation efforts. It’s a holistic assessment that provides a roadmap for continuous improvement, even for companies that don’t initially achieve the required score for certification.

Once you’ve achieved certification, B Lab itself and the broader B Corp community offers a whole ecosystem of networking and learning opportunities, including in-person and online forums. We regularly attend and engage with these, and Switchfoot Wealth’s Sebastian Elwell is even the chair of the B Local Surrey group.

Why Become a B Corp? (Benefits for Businesses)

The benefits of B Corp certification extend far beyond a feel-good factor. In fact, becoming a B Corp can significantly boost a business’s bottom line in several ways:

• Attract and retain talent: In today’s competitive job market, attracting and retaining top talent is crucial. Especially among younger generations, there’s a growing desire to work for companies that have a purpose beyond profit. B Corp certification signals a commitment to ethical practices and positive impact, making your business more attractive to purpose-driven individuals.
• Build brand trust and customer loyalty: Consumers are increasingly conscious of the social and environmental impact of their purchasing decisions. They want to support businesses that align with their values. B Corp certification acts as a powerful signal of trust, demonstrating your commitment to doing business responsibly. This can translate into increased customer loyalty and brand advocacy.
• Access to capital and investors: Impact investing, where investors prioritise social and environmental returns alongside financial returns, is on the rise. B Corp certification can make your business more attractive to impact investors seeking companies that are making a positive difference.
• Improved operational efficiency: The BIA process itself can be a valuable tool for business improvement. By evaluating your practices across various areas, the assessment can highlight areas for improvement, leading to greater efficiency, cost savings, and a more streamlined operation.
• Community and networking: Becoming a B Corp grants access to both local and global network of like-minded businesses. This community offers opportunities for collaboration, knowledge sharing, and mutual support.

Why Become a B Corp? (Benefits for the World)

Beyond the benefits for individual businesses, the B Corp movement is driving positive change on a local and global scale:

• Positive social impact: B Corps are committed to addressing pressing social issues, from poverty and inequality to access to education and healthcare. They strive to create a more equitable and inclusive society.
• Environmental sustainability: B Corps prioritise environmental stewardship, implementing sustainable practices to reduce their carbon footprint, conserve resources, and protect the planet.
• Transparency and accountability: B Corps are committed to open and honest business practices. They undergo rigorous assessments and make their impact reports publicly available, fostering transparency and accountability.
• Driving systemic change: B Corps are at the forefront of a movement to redefine business as a force for good. They are demonstrating that it’s possible to achieve financial success while creating a positive impact on the world.

The B Corp Certification Process (Overview)

The journey to B Corp certification involves several key steps

** Note: B Labs is currently actively consulting regarding an update to this process which will likely come into effect soon **

1. Take the B Impact Assessment: This comprehensive assessment evaluates your company’s performance across the five impact areas.
2. Meet the required score threshold: You must achieve a minimum score on the BIA to be eligible for certification.
3. Legally incorporate benefit corporation status (where available): This step legally embeds your company’s social or environmental mission.
4. Verify the assessment: B Lab reviews your assessment to ensure accuracy and completeness.
5. Sign the B Corp Declaration of Interdependence: This declaration signifies your commitment to the B Corp principles.

Is B Corp Right For Small & Medium Size Businesses (SME’s)?

While B Corp certification is open to businesses of all sizes, it is particularly relevant and achievable for SMEs. Many SMEs are already driven by a strong sense of purpose and are deeply connected to their local communities. B Corp certification provides a framework to formalise these values and demonstrate their commitment to stakeholders. It can also help SMEs differentiate themselves in a crowded marketplace, attract and retain talent, and access new markets.

Some SMEs might be concerned about the cost and complexity of the certification process. However, the BIA can be a valuable tool for identifying areas for improvement, even if a company doesn’t immediately pursue full certification. Furthermore, there are resources available to support SMEs throughout the process, including guidance from B Lab and consultants specialising in B Corp certification.

How To Get Started

The B Corp movement represents a fundamental shift in how we think about business. It’s a recognition that businesses have a responsibility to create value for all stakeholders, not just shareholders.

If you’re an SME owner looking to align your business with your values and make a positive impact on the world, I encourage you to explore the B Corp website and learn more about the certification process.

As an accountant and business advisor working with SMEs, I can also assist you in navigating the BIA, understanding the financial implications of becoming a B Corp, and integrating B Corp principles into your long-term business strategy. Contact me today if you’d like to discuss this.

Becoming a B Corp is not just good for the world; it’s good for business too.