The Benefit of going B Corp for Start-Ups

There are multiple ways a startup can make an impact on the society right from its inception. Some provide services which help people in their daily lives such as Grab or Carousell, whilst some companies decide to dedicate themselves fully to help the environment and obtain the B-Corp certification.

Probably you have seen some of your favorite brands (for example Ben & Jerry's) showcase their newly obtained B-Corp certification and must have asked yourself what the B stands for.

Lets look more closely at what the B-Corp certifications are, why companies decide to get them and how they can benefit a startup.

The B in "B Corp" stands for benefit, it means that a business voluteraly wants to meet certain standards of legal accountability, transparency, sustainability and performance. These businesses aim to create value for society, not just for the traditional stakeholders like the shareholders. The free assent looks at all areas of the business including how it interacts with its workers, community, customers and the environment. The B Corp community includes both established companies and startups. As a result, certification enables the exchange with over 1,800 like-minded companies around the world.

“A growing number of startups are joining the movement and confirming their focus on ethical and sustainable business practices through B Corp certification. Companies that go through the certification process also get to evaluate the impact their operations and business model have on employees, the environment, the communities where they work, and their customers.” -B Corp

The heart of the movement is the B-Impact Assessment. Companies determine their location internally and in relation to their industry. The question-based tool shows where you stand in terms of sustainability and how you can increase your positive impact. The company is viewed as a whole. A group of independent experts continuously checks the quality of the standards. There is a list of criteria based on which the companies are evaluated. 200 points in total can be obtained in the B Assessment Impact test, however 80 points suffice to get the certification.

Criteria Sample list:

The B Impact Assessment is free of charge. It is used by over 40,000 companies worldwide.

Now you wonder what the benefits are for companies to get B Corp certified?

There are a number of benefits the B Corp label and the independent B Corp certification can give, such as:

• They differentiate themselves in the market and in the industry from their competitors showing how the company successfully marries purpose with profit.

• Openly showcasing the company's commitment to lead a socially responsible management.

• The company can position itself as an attractive and future-oriented business to their current and future employees, investors, customers and partners as well as to the media, which can attract more attention.

• Due to the credibility of the B Corp certificate the company can clearly communicate the value of the organization.

Furthermore the B Corp certification gives the businesses access to a global network of 3’500 like-minded company founders with which know how can be exchanged and new insights shared.

So how can Start-Ups benefit from getting B Corp certified?

Especially for start-ups which ambitiously want to take on the position of becoming positive social changers, the B Lab can offer great support right from the beginning.

As Jon Tse, co-founder of Karst Stone Paper, reports on his path of getting B Corp certified:

"I realised the B Corp framework is also a great test for making sure your business idea is worth pursuing in the first place. Monitoring the five areas of performance (workers, environment, community, governance and customers) guarantees your business is healthy and primed for growth, and the shared community of B Corps can help jump-start success by providing a network of vetted potential partners."

Additionally, the organisation can help connect the start ups with established companies with which they can share experiences, benchmark their efforts locally and learn about opportunities to enter new markets and much more.

If you're not yet fully convinced, we strongly encourage you to check out the official B Corp website to find out more about the efforts and read reports from companies which decided to get B Corp Certified. And in case you are familiar with some companies which have been certified, please share with us your experiences!