New B Corp standards raise bar for corporate responsibility

USA –  B Lab, the nonprofit behind B Corp certification, has introduced stricter standards for businesses seeking to earn the prestigious badge, aiming to bolster credibility and address growing criticism. 

The updated framework, announced on April 9, shifts from a points-based system to mandatory benchmarks across seven key areas, including climate action, human rights, and fair work. 

This overhaul comes as nearly 10,000 companies in 100 countries hold B Corp status, a mark of commitment to social and environmental responsibility.

The new standards require companies to adopt climate action plans aligned with the 1.5°C global warming target and enhance supply chain due diligence, particularly for large multinationals. 

B Lab reported that the changes followed four years of consultation, gathering 26,000 pieces of feedback from stakeholders across 67 countries. 

The organization aims to ensure that certified businesses prioritize people and the planet over profit, responding to concerns that the certification’s value has been diluted by inconsistent practices.

“We’ve listened to the global community and redesigned the standards to uphold the integrity of B Corp certification,” said a B Lab spokesperson. 

The transition will be gradual, with existing B Corps required to meet the new criteria during their three-year recertification cycles. 

Continuous improvement and mandatory milestones at three- and five-year marks will also be enforced to maintain certification.

Criticism of the B Corp system has grown in recent years. Meanwhile, some smaller firms, like UK-based pet food brand Scrumbles, opted out of recertification, arguing that the inclusion of large corporations with questionable ethics undermined the badge’s credibility. 

Scrumbles’ co-founder Aneisha Soobroyen stated, “The certification no longer holds the weight it once did, as companies with conflicting values gain approval.”

Despite such concerns, the new standards have been welcomed by some. Emma Aberg of UK consultancy Greenheart praised the update, noting it positions B Corps as leaders in sustainable business practices. 

The financial impact of adopting these standards remains unclear, but B Lab insists the framework provides clarity for businesses to tackle pressing global issues like climate change and inequality. 

Subscribe to our email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE