What is a B-Corp and Why Does it Matter

A ‘B Corp’ is a designation that reflects a company’s dedication to social and environmental good practices beyond just profit. It’s a seal of the organization’s unwavering commitment to transparency and accountability and desire to positively impact society and the planet.

Companies receive a B Corp certification by B Lab, a nonprofit organization looking to transform the economic system by addressing some of society’s most critical challenges with new standards, policies, tools and programs that emphasize the balance of corporate profit with social purpose. 

Certified B Corporations are trailblazing the path to building a more inclusive, equitable, and regenerative economy. Unlike other certifications, B Lab’s B Impact Assessment measures an organization’s social and environmental impact holistically, considering a diverse set of stakeholders, including workers, customers, suppliers, the community, and the environment.

Growth and Impact of the B Corp Certification

The B Corp movement has gone from strength to strength since its humble beginnings nearly two decades ago. What started as a small nonprofit group in Pennsylvania in 2006 has evolved into a global phenomenon.

A year after B Lab launched, just 82 companies earned B Corp certification. In 2023, 2,385 companies across the US and Canada achieved B Corp certification—an increase of about 16% from the previous year. A record 328 new organizations joined the ranks in 2023, according to B Lab’s 2023 Annual Report.

The B Corp effort aims to “make business a force for good.” For-profit companies can earn B Corp certification by demonstrating their commitment to B Lab’s specific social and environmental standards.

Key Elements of B Corp Certification

Rigorous Standards

B Corps must meet stringent standards in several areas, including governance, worker treatment, community involvement, environmental impact, and customer relationships. The assessment involves over 200 questions and covers a wide range of business practices.

Legal Commitment

B Corps are required to amend their legal governing documents to make themselves accountable to all stakeholders, not just shareholders. This legal change solidifies the organization’s commitment to creating a positive impact and ensures its accountability.

Transparency

B Corps must publish their impact reports publicly, allowing consumers, employees, and other stakeholders to see the company’s performance in social and environmental areas. This transparency fosters trust and accountability.

Assessment Process

To achieve B Corp designation, companies must complete the B Impact Assessment, score at least 80 out of 200 points, and provide supporting documentation. This rigor ensures that the company genuinely adheres to principles of social and environmental responsibility.

Benefits of Being a B Corp

As leaders in the movement for economic systems change, B Corps reap remarkable benefits, including:

• Building greater trust with consumers, communities, and suppliers
• Attracting and retaining scarce talent
• Attracting mission-aligned investors

Let’s take a closer look at some of the advantages of achieving B Corp designation:

Credibility and Trust

B Corp certification signals to consumers, employees, and partners that the company is committed to social and environmental responsibility, greatly enhancing its reputation and building trust.

Attracting Talent

Many job seekers today prioritize working for organizations with strong ethical and social values. Being a B Corp can help companies attract and retain top talent who are equally passionate about making a positive impact.

Competitive Advantage

B Corps stand out in the marketplace due to their commitment to ethical practices. This can differentiate them from competitors and appeal to conscious consumers and partners.

Community and Network

B Corps are welcomed into a community of like-minded businesses that support one another and collaborate on initiatives aimed at driving systemic change. This cooperative network allows companies to tap into valuable resources, partnerships, and opportunities for growth.

Long-term Sustainability

By focusing on sustainable and ethical practices, B Corps are often better positioned for long-term success. They can adapt to changing market demands and regulatory environments, ensuring their resilience and sustainability.

Onwards and Upwards

B Corp businesses are continually on the move, seeking new ways to improve their impact—even after they’ve been certified.

Fast facts:

• B Corps are twice as likely to use 100% renewable energy than non-B Corps.
• B Corps are twice as likely to be led by majority-female management teams, and there are over 1,800 women-owned B Corps.
• 119,000 workers can own shares in their B Corp company, with 26% of B Corps giving employees the opportunity to own a piece of their company.

Summing Up

The growing B Corp community is redefining modern measures of business success and prosperity by focusing on continuous improvement, which, ultimately, leads to their long-term resiliency, financial health, and longevity.

About Payactiv

Payactiv, an award-winning certified B Corp, is the leading provider of Earned Wage Access (EWA)¹. We offer a suite of financial wellness services designed to empower people to participate in the economy they helped create. Our platform and digital wallet serve 2,000+ businesses and level the playing field for millions of workers who struggle with cash flow between paychecks.

Payactiv is the only EWA provider-certified B-Corp, and ranks in the top 5% of thousands of certified B Corporations worldwide.

Based on the B Impact assessment, Payactiv earned an overall score of 103.4. The median score for ordinary businesses who complete the assessment is currently 50.9.

Learn more at www.payactiv.com.

¹ Earned Wage Access requires employer participation. Employees can only access a portion of the wages they have earned to date.

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