Values Spotlight: Certified B Corporations

Ever paid a little more because something was produced sustainably? Ever felt guilty about buying from a company that doesn’t share your values? Then you may be pleased to know that there’s a way to identify companies that prioritize social and environmental values. These companies are Certified B Corporations (“B Corps”).

But how do we know if a company is meeting the obligations it has agreed to meet? Are there any legal requirements? Who certifies B Corps in the first place?

Certifications like “B Corp” shouldn’t be opaque and mysterious. That’s where the Values Movement comes in. Recognizing the need for an economy based on values, not just profits, its members continuously validate certifications, making them more transparent and reliable.

Read on to find out about the Values Movement and its new approach to certifications like B Corp.

B Corps: Not Just Profits

A Certified B Corporation is a company driven by the desire to be socially and environmentally active, transparent, and accountable — not just by the profit motive.

The B Corp ranks are growing. As of August 2022 the total had grown to over 1,900.

B Corp certification is granted by a nonprofit called B Lab. A B Corp must operate under the principle of stakeholder governance. That means taking into account the impact of its decisions on all its stakeholders — “workers, communities, customers, suppliers, and the environment — not just shareholders,” as the B Lab website explains.

Patagonia, Kickstarter, Athleta and The Body Shop are examples of prominent Certified B Corporations.

Fundamentally, B Corp certification gives some assurance to members of the public that a company embraces certain values.

The Fine Print

It’s important to note that a “B Corp” is not a legal entity but a certification, awarded not by a government but solely by B Lab.

A B Corp must also become a public benefit corporation (PBC) — a legal entity with similar requirements to those of B Corp certification — if the law defines such an entity in the company’s state. As of August 2022 there were about 3,000 PBCs.

But much of the public has no knowledge of any of this. Could there be a better way to align customers with companies that share their values?

Limitations

B Corp certification can only be granted by B Lab. Though described as a “network,” B Lab operates as an independent organization. It’s not answerable to the general public. Under the Values Movement ecosystem, certifications like this are crowd-validated and therefore more transparent and verifiable. They do not rely on local governments, but transcend the governmental layer, putting control directly in the hands of people.

As for PBC status, it’s defined in the US by each state individually — and some states don’t offer it at all. That combined with the nature of B Corp certification can be a recipe for consumer confusion.

While admirable, the B Corp/PBC movement faces strong headwinds. After all, in a capitalist economy the profit motive is supposed to be top priority, right? That’s a doctrine known as shareholder primacy.

How the Values Movement Can Kickstart a Move from Shareholder Primacy to Stakeholder Governance

Profit is a fine and necessary economic motive, but our economy should also take our values into account. The Values Movement empowers peoples’ values in the marketplace to help guide companies to make wise decisions not based solely on profit.

The Values Movement provides a web app to strengthen and raise confidence in certifications, with transparent descriptions of all certifications so Members can know exactly what is being certified and how. It will reduce the confusion and distrust that can result from conflicting certifications and designations (like B Corp vs. PBC).

It unites ethically motivated consumers into a powerful buying group. They can then influence companies to seek certifications that customers can rely on. Unique to the Values Movement, these active, participatory, crowd-verified certifications filter the content you see, blocking content from companies that don’t match your values and thus empowering your values in the marketplace.

And it can further validate existing certifications, giving businesses a clear choice as they seek to earn trusted ones.

Join the Values Movement to build a global movement of people and businesses committed to values-driven profit instead of profit-driven values.