Why Consider Becoming a B Corp | B CORP’S IMPACT FRAMEWORK
B Corp: The corporate world is always evolving. Gone are the days of simply relying on numbers and profit to make it into the spotlight. Nowadays, you need to showcase and prove your contribution to social and environmental impact to have that competitive edge truly.
WHAT IS A B CORP?
A B Corp is the new wave of incorporating both a lucrative financial return for the business and injecting sustainability practices into their business model to ensure both social and environmental impact.
WHAT IS B CORP CERTIFICATION?
Assessed by not-for-profit B Lab, B Corporation certification is given to for-profit organisations who are dedicated to social impact and sustainability. These organisations ought to accomplish at least the minimum score based on social and environmental standards set by B Lab.
B CORP’S IMPACT FRAMEWORK
This impact framework is set for businesses looking to adapt their business model to ensure sustainability and impact surrounding their
staff
clients
customers
suppliers
community
and their environment.
Measurement is based on the following:
Governance: This relates to the corporate infrastructure of the company, the business model, the rights of their stakeholders and investors, diversity and inclusion of the management and above, and distribution of shareholder value to staff members.
Community: This relates to how the business model and practices of the company have a direct impact on the surrounding community.
Workers: Diversity and inclusion of staff members, volunteering practices, compensation, culture indicators, and fair and healthy labour practices throughout the business.
Environment: This relates to how the company has injected sustainability into their business model, carbon footprint, environmental impact, and measurement of this impact.
Customers: This accounts for how the business is centered around their customer base, measurement of customer satisfaction, as well as who the company works with and for.
WHY YOU SHOULD CONSIDER IT?
It provides an undeniable competitive edge.
Consumers are more aware of their spending habits.
It has a positive impact on brand equity.
You get access to a range of discounts and other benefits.
It will improve the overall performance of the company.
More interesting and appealing to investors.
WHEN IS NOT THE RIGHT TIME TO CERTIFY AS A B CORP?
When applying to be certified as a B Corp, it forces the company to think beyond just making a profit. In fact, they have stated that the company ought to be committed to promoting success for the benefit of its members and to ensure that the company has a positive impact on the surrounding society and environment.
Once you have applied, you are required to fully adapt your business model and not just focus on making a profit. Therefore, it is crucial to ensure your company is ready for such a change.
COST AND TIME FOR ACCREDITATION
Application for this certification is definitely a commitment. You should note that there is an annual fee, starting at $500 (and scaled according to the company’s revenue).
This certification needs to be renewed every 3 years and the company needs a minimum score of 80 (out of 200) of which the following will be taken into consideration:
governance
community
workers
environment
and customers.
This process takes an average of 4-6 months according to the company size and therefore, the company is required to be fully prepped and prepared for this commitment.
KnightsBridge Consultants can help you
If you want to discuss this further, and outsource your sustainability and impact department, please contact Our KnightsBridge Consultants at info@knightsbridgeconsultants.com.