Explained with Connect Earth: B-Corp certification

Do you know what B Corps are and how a business can become one? If not, ‘’Explained with Connect Earth’’ is here to help.

B Corp stands for Benefit Corporation. It’s essentially a legal tool that allows companies to extend their obligations from only complying with legal requirements and focusing on shareholders’ profits to committing to higher standards of purpose, accountability, and transparency.

In other words, apart from generating profit, a B Corp’s legal goal is to create public benefit and generate sustainable value.

To become a B Corp, you need to obtain special certification which requires rigorous assessment of the company’s impact on its workers, customers, community, and the environment. Governance practices are also taken into account.

The assessment is performed by a company called B Lab who is the brain behind the certification idea. Only 1 in 3 companies that submit the assessment ends up being certified!

Finally, companies need to renew their certification every 3 years. This motivates companies to keep their high standards and continuously work towards providing added value to society.