B Lab's Scoring and Certification Process
The first step is free, and is accomplished by filling out the 200 question B Impact Assessment on the B Lab website. A score of 80 must be achieved in order to proceed. Most companies do not achieve this score on first try. Many don’t expect to, but use this assessment as a tool to learn in which areas they need to improve in order to try again.
The current average score at first assessment is 50.9.
On achieving a score of 80, a business can submit the assessment to the B Lab analysts for verification and evaluation. B Lab will then determine if a business is eligible to certify based on its governing structure and whether its industry sector is considered “controversial.” (A list of controversial business sectors can be found here. It’s interesting reading.) Submission of verifying documents will then be required and background checks may be run. If after an extensive review process a business receives a score of 75 but less than 80, they are allowed time to make changes and possibly raise that score. Below 75 and they must start over. The whole process may take over a year.
It's no walk in the park. You can’t just stick a label on a package and call yourself, “good.”
Above are the five areas B Lab looks at when making their assessment. They're called "Impact areas." In the assessment they are not all given the same value, and the value they are given may depend on the type of business being assessed.
Governance evaluates a companies mission, ethics, accountability and transparency.
Workers looks at how a company contributes to its employee's financial, physical, professional and social well-being.
Community evaluates how a company contributes to the economic and social well-being of the communities in which it operates.
Environment evaluates a companies environmental impact and stewardship.
Customers looks at the value of the products and services the business sells.
Upon being certified a B Corp Agreement is signed and the business will pay an annual fee. The fee is based on gross revenue, starting with $2000 for a business with sales of 4.9 million or less and rising to $50,000 or more for a business with a billion dollars in sales. Businesses must reapply every 3 years and submit an annual impact report.
And the successful business can go ahead and stick that label on their product. The one that actually means something.
