How To Become a B corporation
What is the workflow for a business to become a B corporation?
The workflow for a business to become a B Corporation (B Corp) typically involves the following steps:
- Self-Assessment: The business will complete a self-assessment questionnaire provided by B Lab, the non-profit organization that certifies B Corps. This questionnaire assesses the business’s performance in areas such as governance, workers, community, and the environment.
- Legal requirement: The business will review the legal requirements for becoming a B Corp in their jurisdiction and make any necessary changes to their legal structure, such as amending their articles of incorporation or bylaws.
- Verification: The business will submit the self-assessment questionnaire and supporting documentation to B Lab for verification. B Lab will review the information and conduct an on-site assessment if necessary.
- Certification: If the business meets the necessary standards, B Lab will certify the business as a B Corp. The certification is valid for three years, after which the business must re-certify.
- Public Commitment: The business will make a public commitment to use business as a force for good, and it will be expected to communicate their commitment to stakeholders, such as customers, employees, investors, and suppliers.
- Continuous improvement: The business will be required to continually improve its performance in areas such as governance, workers, community, and the environment, in order to maintain its certification.
It’s worth noting that the process may vary depending on the jurisdiction, and some countries may not have legal structures in place to allow for B Corps. Also, the process of certification can take several months, and it may require significant changes to the business operations and systems, as well as ongoing monitoring and reporting to maintain certification.