B Lab is a

non-profit organization A nonprofit organization (NPO), also known as a nonbusiness entity, nonprofit institution, not-for-profit organization, or simply a nonprofit, is a non-governmental (private) legal entity organized and operated for a collective, public, or so ...

that was founded in 2006 in

Berwyn, Pennsylvania Berwyn is a census-designated place (CDP) in Chester County, Pennsylvania, United States. Berwyn is located in Tredyffrin and Easttown townships. The area is part of the Philadelphia Main Line suburbs. History In 1877, the town received it ...

, by Andrew Kassoy, Jay Coen Gilbert and Bart Houlahan. B Lab created, and awards, the B corporation certification for

for-profit Business is the practice of making one's living or making money by producing or buying and selling products (such as goods and services). It is also "any activity or enterprise entered into for profit." A business entity is not necessari ...

organizations. The "B" stands for beneficial and indicates that the certified organizations voluntarily meet certain standards of transparency,

accountability In ethics and governance, accountability is equated with answerability, culpability, liability, and the expectation of account-giving. As in an aspect of governance, it has been central to discussions related to problems in the public secto ...

sustainability Sustainability is a social goal for people to co-exist on Earth over a long period of time. Definitions of this term are disputed and have varied with literature, context, and time. Sustainability usually has three dimensions (or pillars): env ...

, and performance, with an aim to create value for society, not just for traditional stakeholders such as the

shareholder A shareholder (in the United States often referred to as stockholder) of corporate stock refers to an individual or legal entity (such as another corporation, a body politic, a trust or partnership) that is registered by the corporation as the ...

s. While originally founded in the United States, today B Lab is a global network. B Lab Global is the entity that is the hub of the network and certifies companies as B Corps. The B Lab network also includes dozens of B Lab organizations at the country and regional levels. They support their community of B Corps, bring companies into the certification pipeline, and develop local programming to support the movement towards economic systems change based on stakeholder governance (i.e., a B Corp). In order to earn B Corp certification, companies must achieve a score of 80 or higher out of 200 based on five criteria -

governance Governance is the overall complex system or framework of Process, processes, functions, structures, Social norm, rules, Law, laws and Norms (sociology), norms born out of the Interpersonal relationship, relationships, Social interaction, intera ...

workers' rights Labor rights or workers' rights are both legal rights and human rights relating to labor relations between workers and employers. These rights are codified in national and international labor and employment law. In general, ...

, community impact,

environmental impact Environmental issues are disruptions in the usual function of ecosystems. Further, these issues can be caused by humans ( human impact on the environment) or they can be natural. These issues are considered serious when the ecosystem cannot reco ...

and "stewardship of its customers". Once a company passes the B Lab's "Impact Assessment", it must then pay an annual fee which is based on its location and gross annual revenue. As of December 2023, there were over 7,600 B Corps in 84 countries and 157 industries. With its rigorous standards, B Corp certification can enhance a company's reputation, as well as attract socially and environmentally conscious customers. Because of this, the waiting list for assessment can be up to two years. In addition to awarding B Corporation certifications to companies that score high enough on the B Impact Assessment, B Lab’s initiatives include administration of the B Impact Management programs and software, as well as advocacy for the adoption and improvement of

benefit corporation In business, and only in United States corporate law, a benefit corporation (or in some states, a public benefit corporation) is a type of for-profit corporate entity whose goals include making a positive impact on society. Laws concerning ...

statutes at the state level. (The B Corporation certification should not be confused with state-sanctioned benefit corporation status.) B Lab has attracted media attention to the concept of benefit corporations. Some people confuse the concepts of a benefit corporation and a B Corporation, and sometimes use these phrases as if they are interchangeable even though they are very different legally. B Lab has established a partnership with the

United Nations The United Nations (UN) is the Earth, global intergovernmental organization established by the signing of the Charter of the United Nations, UN Charter on 26 June 1945 with the stated purpose of maintaining international peace and internationa ...

to help the private sector translate the

Sustainable Development Goals The ''2030 Agenda for Sustainable Development'', adopted by all United Nations (UN) members in 2015, created 17 world Sustainable Development Goals (SDGs). The aim of these global goals is "peace and prosperity for people and the planet" – wh ...

(SDG) into practical business processes. B Lab created an SDG Action Manager that became available for companies to use in 2020.

References

External links

*{{Official website, https://www.bcorporation.net/en-us Non-profit organizations based in Pennsylvania Social responsibility organizations 2006 establishments in Pennsylvania Standards organizations