What is B Corporation?
A B Corporation (Benefit Corporation) is a company certified by B Lab that meets high standards of verified social and environmental performance, accountability, and transparency, balancing profit with purpose.
B Corp vs. Benefit Corporation:
B Corp is a certification by a private organization (B Lab). Benefit Corporation is a legal entity structure available in some US states.
B Corp Certification Process
To become a certified B Corporation, a company must complete the B Impact Assessment: a rigorous evaluation scoring performance across five categories: governance, workers, community, environment, and customers. A minimum score of 80 out of 200 points is required for certification. The assessment takes several months to complete, involves third-party verification of claims, and requires re-certification every three years.
B Corp Certification Process
To become a certified B Corporation, a company must score at least 80 points on the B Impact Assessment: a comprehensive evaluation covering governance, workers, community, environment, and customers. The assessment is followed by verification calls with B Lab analysts, supporting documentation requests, and an annual fee based on company revenue. Recertification every three years is required, and companies must amend their governing documents to include stakeholder-considering language.
Benefit Corporation Legal Structure
Distinct from B Corp certification, a Benefit Corporation is a legal entity type adopted by over 35 US states and increasing internationally (Italy’s “Società Benefit,” France’s “société à mission,” similar emerging frameworks in Latin America). Benefit Corporations explicitly include stakeholder consideration in directors’ fiduciary duties, protecting management from shareholder lawsuits when balancing profit against mission. The certification (B Corp) and the legal structure (Benefit Corporation) can be combined or used independently.
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