B Corp certification is a standard developed by a non-profit organisation called B Lab which certifies companies as socially and environmentally responsible.
B Corp certification looks beyond a company’s financial performance to evaluate its environmental, social and corporate governance (ESG) criteria.
It examines, for instance, an organisation's policy for reducing carbon emissions, the percentage of management that comes from underrepresented populations, and the anti-corruption reporting and prevention systems it has in place.
To be certified as a B Corp, organisations must meet high standards of social and environmental performance, accountability, and transparency; demonstrate a positive impact on society and the environment through their core values, business practices, and profits; and commit to using their influence as a force for good.
B Corp certification is managed by B Lab, which was created in 2006 by three former Stanford University roommates: Andrew Kassoy, Bart Houlahan, and Jay Coen Gilbert.
The organisation was created after the founders realised that there was no way to understand whether a company was having a positive impact on society.
They decided to change the system so that businesses could create value for all stakeholders—not just shareholders—and thus B Lab was born.
The processes for achieving the B Corp certification are extensive and time consuming, but the benefits outweigh this initial investment.
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