Today’s business landscape is a competitive one. In order to stand out from the crowd, many companies take advantage of what is known as greenwashing – the act of making it seem like their company is more environmentally conscious than it actually is. With the growing demand for socially responsible businesses, many companies have taken note and applied for B Corp status. If you’re not familiar with B Corps, they companies that want to consider additional stakeholders, morals or missions in addition to making a profit for their shareholders.

What is Greenwashing?

Greenwashing occurs when an organization distorts the facts about its environmental and/or social performance for financial gain. A company may make false claims about its environmental or social performance in order to gain a competitive advantage over others.

There are a number of ways in which companies can commit greenwashing. First and foremost, companies may claim to be more environmentally conscious than they actually are. This is known as overclaiming and it’s a big problem in the world of green marketing. Perhaps the most obvious type of greenwashing is when a company claims to be 100% sustainable or carbon neutral, when in reality it’s not. A company could also claim to be eco-friendly in order to appear more upscale than it actually is.

Is B Corp greenwashing?

In regards to B Corp certification, some individuals and organizations have raised concerns that the certification may be used as a form of greenwashing. Indeed smaller companies who have attained B-corp status are becoming increasingly concerned about bigger companies gaining B-Corp status, as was recently reported in the Financial Times.

However, the B Corp certification is widely recognized as a rigorous and credible certification that verifies a company’s commitment to social and environmental sustainability. The certification process involves a comprehensive assessment of a company’s operations, governance, and impact on its stakeholders, including the environment.

B Corp certified companies are required to meet a high standard of sustainability and are held accountable to their commitments through ongoing audits and assessments. In addition, the certification is not just a one-time achievement, but rather a continuous process of improvement, where companies must continue to meet the standards to retain their certification.

While there is always a risk of greenwashing in any certification process, B Corp certification is generally considered to be a credible and meaningful certification for companies that are committed to sustainability and social responsibility. Companies that achieve B Corp certification have demonstrated a genuine commitment to making a positive impact on the world and are held accountable to that commitment through ongoing assessments and audits.

The core principles of a B Corp

– A B Corp should operate under a framework of social and environmental responsibility. – – The B Corp’s core business activities should support and advance the organization’s social and environmental mission.

– B Corps should maintain a system of controls that are appropriate to the type of organization and size of the business.

– B Corps should have a transparent and responsible approach to their finances.

– B Corps should conduct business in a manner that is socially and environmentally responsible.

– B Corps should be transparent in their communications with stakeholders.

– B Corps should remain committed to ongoing and rigorous assessment of their social and environmental responsibilities.

How Companies Become a Registered B Corp

Becoming a B Corp is not necessarily an easy process, but it is achievable for companies that are committed to sustainability and social responsibility. The process involves a comprehensive assessment of a company’s operations, governance, and impact on its stakeholders, including the environment.

The B Corp certification process includes a detailed evaluation of a company’s practices and policies, including its treatment of employees, suppliers, and the environment, as well as its overall business model. Companies must meet a high standard of sustainability in order to achieve B Corp certification, and they are held accountable to their commitments through ongoing audits and assessments.

To become a B Corp, companies must complete the B Impact Assessment, a comprehensive evaluation of their social and environmental impact. The assessment covers a wide range of topics, including labor practices, environmental sustainability, community engagement, and governance. Companies must score a minimum of 80 points out of a possible 200 points in order to be eligible for certification.

At a glance the key steps involved include:

– Registering with the SEC as a public benefit corporation or a private benefit corporation.

– Forming a B-Corp stock holding entity with your partners or shareholders. –

– Advertising your B Corp status in a prominent place on your website and in the media.

– Having your B Corp application reviewed and approved by a third-party registered agent service.

– Maintaining good corporate governance and best practices during your B Corp business life cycle.

– Educating stakeholders about the benefits of B Corps.

– Promoting the B Corp model to other businesses.

Examples of companies that are B Corps

Here are a few examples of companies that are B Corps:

Patagonia: Outdoor clothing and gear company known for its commitment to sustainability and environmental activism.
Allbirds: Sustainable footwear company known for its use of natural and environmentally friendly materials.
Bombas: Sock company that donates a portion of its profits to support homelessness and poverty relief efforts.
Greyston Bakery: Bakery that provides jobs and job training to individuals in need, including those who have been previously incarcerated.
Dr. Bronner’s: Maker of organic soap and personal care products known for its commitment to ethical sourcing and fair trade practices.
Method: Maker of environmentally friendly cleaning products that are safe for people and the planet.
Numi Organic Tea: Maker of organic tea known for its commitment to sustainability, fair trade, and social responsibility.
The Eden Project: a charity and social enterprise in Cornwall that promotes sustainability and education through its biomes and gardens.
Divine Chocolate: a chocolate company that works with cocoa farmers to ensure they receive fair prices and support for their communities.
Bulb: a renewable energy provider that offers affordable, sustainable energy to households and businesses.
Pukka Herbs: a herbal tea company that sources its ingredients from organic and fair trade suppliers.
The Big Issue: a social enterprise that supports people who are homeless or at risk of homelessness by providing them with a means to earn an income through selling the Big Issue magazine.

These are just a few examples of companies that are B Corps. B Corps come from a variety of industries and are recognized for their commitment to balancing purpose and profit, and for their positive impact on society and the environment.

The Benefits of Becoming a Registered B Corp

There are a number of benefits associated with becoming a registered B Corp. Perhaps the most significant of these is the ease with which they can raise capital.

As the name suggests, a B Corp is designed to focus on building a brand that is rooted in social and environmental responsibility. This is an ideal platform for business owners who wish to promote positive change.

In order to capitalize on this opportunity, many B Corps choose to incorporate themselves as a registered B Corp. This is often the most cost-effective route to achieving this goal. In fact, many entrepreneurs will consider this route only after they have tried raising capital through conventional channels.

Another important benefit of becoming a registered B Corp is the opportunity for greater brand equity. This is especially true for B Corps that are headquartered outside of their home country. As such, these companies are able to leverage their brand equity and promote the benefits of B Corps to a global audience.

Conclusion

B Corp status is a powerful tool for businesses looking to make a positive impact on the world. However, it’s important to keep in mind that greenwashing can occur at any level of the business world. As such, it’s important to ensure that a company’s claims about its sustainability actually align with the truth.

These key benefits of a registered B Corp show why they are such a valuable asset for businesses. If you’re interested in exploring more, be sure to check out the official B Corp website.