A number of this firm’s clients have asked us to explain the process of how their business might become a certified “B Corporation”, a business model that focuses on improving responsible business practices.
We are delighted to legally advise and assist in this area – But we (yet) need to be convinced that the approach is more that “Form Over Substance”.
We asked this firm’s Paralegal Intern, Ms. Davina Patel to seek to convince us differently. She replied:-
What is a B-Corp Certified Business?
A B-Corp certified business means that a business has met a high standard verification process for their environmental, social and governance (ESG) policies – ranging from accountability and transparency to supply chain practices.
To receive the certification, the business must:
• Demonstrate a high social and environmental performance by passing the B Impact Assessment with a high score;
• Make a legal commitment to change the corporate governance structure to be accountable to all stakeholders rather than just shareholders; and
• Be publicly transparent about their ESG performance on their B Corp profile.
Advantages of Firms holding a B-Corp Status
Since the first firms, became B-Corp firms (five to ten years ago), the popularity of the B-Corp movement has grown within many industries.
There are many advantages of firms becoming B-Corp certified businesses, including:-
1. Competitive Advantage
Having a B-Corp status allows firms to attract further clients – because it gives firms a competitive advantage.
As ESG policies have become more important for businesses around the world, clients want to hire firms that have the same values as their business.
Therefore, holding a B-Corp status is good evidence that a firm’s values match that of their prospective clients.
2. Greater Talent Pool
Holding a B-Corp status also allows firms to attract a lot more talent.
This is because there is a growing trend in the market, whereby people are wanting to work for companies that meet the same values as themselves.
Therefore, having this status is another way to attract further talent in an existing competitive jobs market.
3. Greater Investment
A B-Corp status could mean that firms may be able to attract further investment into the company.
The transparency condition of becoming a B-Corp certified business allows investors to make quick investment decisions regarding a firm, without having to conduct a deep analysis into the firm’s sustainable policies.
This is because the status itself is seen as an approval of the firm having strong sustainable practices.
Conclusion: The business world is increasingly becoming conscious about their ESG policies, and firms should consider becoming a B-Corp certified business to adapt to this demand.
Please feel free to discuss with us – if you would like to explore matters further.
Founding Principal – and – Business Law Solicitor
+44 (0) 20 8780 3319 : London D.D. Landline Tel.
www.EquitableLaw.com – Solicitors For Business
DRJ Ref:- w-036-0634