As businesses evolve in a world increasingly focused on sustainability and social responsibility, a major question arises for many founders and CEOs: Should we become a B Corporation? If you’re on the fence about pursuing B Corp certification for your company, you’re not alone. While the idea of becoming a certified B Corp sounds appealing, the process is rigorous, and the time and financial investment may seem daunting.
However, for many businesses, the benefits far outweigh the challenges. In this article, we’ll dive into the realities of becoming a B Corp, helping you weigh the pros and cons to make an informed decision about whether it’s the right move for your company.
What is a B Corp?
Before making any decisions, it’s important to understand exactly what a Certified B Corporation (B Corp) is. B Corp certification is awarded by B Lab, a nonprofit organization that evaluates businesses based on their social and environmental performance. It’s not just about meeting a few sustainability targets; it’s about proving that your company operates with a balance of purpose and profit.
B Corps are legally required to consider the impact of their decisions on all stakeholders—not just shareholders. This includes employees, customers, suppliers, community members, and the environment. The goal is to create long-term, sustainable value for all parties involved.
The Benefits of B Corp Certification: Is It Really Worth the Effort?
The thought of undergoing the intense B Impact Assessment (BIA) and meeting stringent performance standards might make you pause. But for thousands of companies worldwide, the benefits have proven to be transformational.
But… Let’s explore what you can gain from B Corp certification.
1. Stand Out in a Crowded Market
In today’s marketplace, ethical consumerism is on the rise. More than ever, consumers are considering the social and environmental impact of the brands they support. According to a 2021 report by Deloitte, 32% of consumers are highly motivated to choose brands that promote sustainability, and younger generations like Gen Z and Millennials are driving this trend.
Being a certified B Corp distinguishes your brand as one that takes action, not just words, to align with social and environmental goals. It sends a clear message that you’re committed to doing business in a way that benefits all stakeholders.
2. Access a Global Community of Changemakers
When your business becomes B Corp certified, you become part of a global network of forward-thinking businesses. There are over 8,000 B Corps globally, including big names like Patagonia, Ben & Jerry’s, and The Body Shop—all committed to using business as a force for good.
Through this community, you can gain access to collaboration opportunities, thought leadership, and a platform for sharing ideas. This isn’t just about boosting your brand’s image—joining this network allows you to connect with like-minded business leaders and find opportunities to partner and grow.
3. Attract and Retain Top Talent
One of the most overlooked benefits of B Corp certification is its impact on talent acquisition and retention. A 2022 study found that 64% of Millennials consider a company’s social and environmental commitments when deciding where to work.
Becoming a B Corp shows prospective employees that your company is committed to more than just profit; you care about people and the planet. In a job market where purpose-driven work is increasingly important, B Corp status can help you attract and retain employees who are deeply aligned with your company’s values.
Moreover, employees at B Corps report higher job satisfaction because they feel like they’re part of something bigger. For businesses, this means lower turnover, reduced recruitment costs, and a more engaged workforce.
4. Potentially Boost Your Bottom Line
It’s often thought that focusing on social impact means sacrificing profit. But research shows the opposite. In fact, B Corps outperform traditional businesses in the long run. According to B Lab, B Corp-certified businesses grew their revenue by an average of 26% between 2017 and 2020, compared to just 5% for non-B Corps.
Additionally, in sectors where consumers care deeply about sustainability—such as food, beauty, and fashion—B Corp certification has been shown to increase customer trust and loyalty, resulting in higher sales. For example, Ben & Jerry’s and Patagonia have both cited B Corp status as a key reason for their loyal customer base and continued growth.
5. Attract Mission-Aligned Investors (Startups)
In recent years, impact investing has taken off, with more investors looking for opportunities that align with their values. B Corp certification can make your business a magnet for mission-aligned capital. Investors seeking out businesses with Environmental, Social, and Governance (ESG) credentials are increasingly drawn to certified B Corps because they know these businesses meet high standards of performance and accountability.
According to B Lab, 70% of B Corps that seek equity financing succeed compared to just 56% of all businesses. For startups or growing businesses in need of funding, the B Corp certification can open doors to investors who prioritise sustainability and social impact.
6. Prepare for Long-Term Resilience
Becoming a B Corp forces your company to focus on continuous improvement. The certification process isn’t a one-time achievement; B Corps must recertify every three years, demonstrating ongoing commitment to social and environmental goals.
This means you’ll always be looking for ways to improve your business practices, whether it’s reducing your carbon footprint, improving employee benefits, or giving back to your community. This focus on long-term sustainability and accountability builds resilience, making your business better equipped to weather economic downturns and societal changes.
The Challenges: Is B Corp Certification Right for Your Business?
Of course, B Corp certification isn’t for everyone. It’s essential to consider the challenges you’ll face along the way.
Time and Resource-Intensive Process
The B Impact Assessment is thorough and time-consuming. It requires you to evaluate every facet of your business, from governance and environmental impact to how you treat your employees and suppliers. This can take months, especially if your business is still in the early stages of formalising policies or tracking impact metrics.
For small businesses, especially those with limited resources, the process might feel like “running a marathon,” as one B Corp CEO put it. However, the payoff can be significant for those committed to creating a better business.
Cost of B Corp Certification
The cost of B Corp certification varies depending on the size of your company. For businesses generating less than $150,000 in revenue, fees start at $1,000 per year. For large enterprises, costs can reach $50,000 or more annually.
While this is a considerable expense, especially for small businesses, many B Corps report that the long-term financial benefits outweigh the costs. Clearly PR, a UK-based communications agency, reported a 63% increase in average contract value after achieving B Corp status, alongside reduced recruitment costs.
Balancing Profit with Purpose
For some companies, the shift from a shareholder-focused to a stakeholder-focused model can be a difficult adjustment. You’ll need to weigh profit against social and environmental responsibilities, which may lead to higher upfront costs. However, many businesses find that this balance pays off in the long run, as sustainability and profitability often go hand in hand.
Is B Corp Certification Worth It?
Ultimately, the decision to pursue B Corp certification will depend on your company’s goals, values, and capacity. If you’re passionate about doing business with purpose, want to build a company that lasts, and are willing to invest in long-term sustainability, then B Corp certification could be a game-changer for you.
For many, the certification process has been described as more than just a test—it’s a learning tool that helps businesses uncover blind spots and find new opportunities for improvement.
By joining the B Corp community, you not only differentiate yourself from competitors, but also gain access to a network of businesses, employees, and investors who share your vision for a better world.
If you’re looking for golden nuggets to take away:
- B Corps outperform traditional businesses, growing revenue faster and increasing customer loyalty.
- Mission-aligned capital is more accessible to B Corps companies as its an easy way for investors to effectively evaluate a company’s CSR vision & mission.
- B Corp certification attracts top talent, with employees seeking out purpose-driven companies.
So, ask yourself this:
What kind of legacy do you want your business to leave behind? If the answer is one that prioritises people, planet, and profit equally, then B Corp certification might just be the next step in your company’s evolution.
