B Corp Certification: What it is and Why it Matters

Introducing the concept of B Corp certification

Companies throughout the world have prioritised Corporate Social Responsibility (CSR) in recent years, aiming to make a good impact on society and the environment.

Australia is no exception, with an increasing number of companies incorporating environmentally friendly and socially responsible practices.

B Corp accreditation, a globally recognised benchmark for organisations that prioritise both purpose and profit, is one effective approach to demonstrate a commitment to these principles. It is a voluntary approach that allows businesses to assess their influence on society and the environment and then share this information publicly.

In this comprehensive guide, we will look at what it means to be a B Corp certified organisation, the five pillars of B Corp, and how Australian businesses can embrace this accreditation to maximise their social impact.

What does B Corp stand for?

B Corp, which stands for Benefit Corporation, is a new type of business that combines purpose and profit. These businesses are dedicated to having a beneficial influence on society and the environment while also producing a profit for their shareholders.

Certified businesses have legally binding obligations that go above and beyond what is needed by law. For example, in addition to their workers and shareholders, they must consider their impact on the community and the environment. Organisations must also commit to open reporting standards and transparency.

What it means to be B Corp certified

B Corp certification allows businesses to publicly demonstrate their commitment to social and environmental causes, transparency and accountability.

Getting B Corp certified implies more than just meeting specific criteria; it represents a company's commitment to rethinking success in business. Accredited B Companies are part of a global community of organisations committed to using business as a force for good, generating positive change and motivating others to do the same.

The certification is not a one-time achievement; B-Corp-certified companies must continually maintain and improve their performance to retain their certification, demonstrating an ongoing commitment.

If you want to support businesses that care about more than simply profits, and if you want your money to go towards something more significant than another pair of shoes or another coffee maker, B-Corps are the way to go.

B Corps Organisations in Australia

The number of B Corps in Australia is quickly increasing, with over 640 Certified B Corporations in the country, representing industries including finance, food & beverage, technology and waste management. They are part of a movement of more than 6,290 B Corps around the world.

Their expansion demonstrates the growing relevance of social and environmental effects in the corporate world, and it demonstrates that an increasing number of organisations recognise the need to do good while also earning a profit.

B Corps are certified by B Lab (previously known as the nonprofit organisation Business Alliance for Local Living Economies), which has been active in America and Europe since 2006 before moving into Asia Pacific.

Catalyser is also proud to be a B Corporation, a global stamp of approval that recognises our high standards of social and environmental performance as well as our dedication to using business as a force for good.

The 5 Pillars of B Corp

The B Corp certification is built on five core pillars, which serve as the foundation for assessing a company's social and environmental performance. The five pillars of B Corp certification are:

• Governance: Good governance is crucial for guaranteeing that a corporation stays accountable and transparent in its decision-making processes. B Corp accredited businesses must follow responsible governance methods such as clearly stated mission statements, stakeholder participation, and strict ethical norms.
• Workers: This pillar focuses on employee fairness, including benefits such as paid parental leave and health insurance coverage. Companies that are certified must provide a positive work environment, pay a fair salary, and demonstrate a commitment to diversity, equity, and inclusion.
• Community: B Corp accredited organisations should have a strong sense of community participation. These companies must actively contribute to the areas in which they operate, by supporting local projects, creating community partnerships, and working to reduce any negative effects of their operations.
• Environment: The environmental pillar of B Corp accreditation focuses on a company's climate impact. It covers everything from energy use and greenhouse gas emissions to waste management and water conservation. B Corps are dedicated to lowering their environmental impact through the implementation of sustainable practices and the reduction of their carbon footprint. This not only improves the environment, but it can also save the firm money by lowering waste and energy consumption.
• Customers: B Corp certified businesses must prioritise the well-being of their consumers and ensure that their products and services contribute positively to society. This encompasses anything from delivering correct product and service information to preserving client data and privacy. B Corps are dedicated to offering high-quality products and services while also treating their consumers with dignity and transparency.

Becoming a Certified B Corp in Australia

To become a Certified B Corp in Australia, a company must go through a rigorous certification process that includes achieving tight standards across the five pillars of B Corp certification. The steps to becoming a certified B Corp in Australia include:

1. Take the B Impact Assessment: The B Impact Assessment is a digital tool used by over 150,000 businesses that can help measure, manage, and improve positive impact performance for the environment, communities, customers, suppliers, employees, and shareholders; receiving a minimum verified score of 80 points on the assessment is also the first step towards B Corp Certification.
2. Meet the minimum requirements for certification: Work to address any gaps identified during the assessment, making necessary changes to your operations, policies, and practices to align with B Corp standards.
3. Reach the necessary score: Once you receive a score of 80 or more points, your assessment is verified by B Corp independent analysts.
4. Pay the certification fee: Upon approval, pay the annual certification fee, which varies based on your company's size and revenue.

Benefits of B Corp Certification for Companies

Companies can benefit from B Corp certification in a variety of ways, including increased visibility as well as the opportunity to differentiate themselves in a crowded marketplace and appeal to socially conscious consumers. B Corps are also part of a community of like-minded enterprises dedicated to positively impacting society and the environment.

Challenges of B Corp Certification

While there are many benefits to becoming a certified B Corp, there are also some challenges associated with the certification process. These include:

• Investment in time and resources: The certification procedure can be time-consuming and resource-intensive, especially for small enterprises with limited employees or funding. Improving shortcomings and acting on necessary changes needed to satisfy B Corp criteria may require considerable work and financial investment.
• Increased scrutiny: B Corp accreditation may subject organisations to additional scrutiny from the public, investors, and other stakeholders, who want recognised enterprises to continuously follow their social and environmental commitments.
• Ongoing commitment: B Corp certification is not a one-time event. Businesses must analyse and manage their performance regularly to ensure sustained alignment with B Corp requirements, which may require ongoing investments in time and resources.

Final takeaways

B Corp accreditation provides a one-of-a-kind chance for Australian companies to demonstrate their commitment to social and environmental responsibility while also joining a worldwide community of enterprises using their influence to achieve positive change. Companies that pursue B Corp certification can benefit society and the environment while also growing their businesses and attracting socially conscious customers.

The growing number of B Corp certified companies in Australia is a testament to the importance of this certification in today's business world, and we encourage all Australian companies to consider pursuing B Corp certification.