Large enterprises joining the B Corp movement

With the inclusion of large enterprises and sustainability becoming more mainstream, we notice there’s an evolution in the B Corp movement. We believe the upcoming revision of the standards plays an important role in continuously raising the bar for all. Soon, large enterprises, as well as all other businesses wanting to join the movement, will need to meet specific non-negotiable performance requirements on 10 key topics such as climate action, human rights and impact management. Next to the evolving standard there are four ways in which we believe large enterprises will be entering the B Corp movement in a valuable way:

Together we go further.
In the current economic system, it is challenging for a business to achieve ‘complete’ sustainability. And every sustainable business is at a different stage in becoming a business for good. Therefore, it is essential businesses support each other in achieving systemic change, working together to challenge the status quo. Everyone’s starting point can be different, and it doesn’t mean that all companies will need to put in equal work to meet the high B Corp standards. The current strength of the movement is the building of alliances in support of each other going further. Such as the B Corp Beauty Coalition.

B Corp requires large companies to transform.
B Corp as a standard is one of the few that covers sustainability of a full organization, regarding operations and products and services. For instance, while the Fairtrade certification has a positive impact on (parts of) the supply chain, it does not address the internal pay gap between employees and their CEO. B Corp on the other hand provides a comprehensive framework that assesses companies on their operational and business model practices. To achieve the B Corp standard, it requires large enterprises to transform considerably. Thus, applying the B Corp standards to large enterprises can have a significant positive social and environmental impact, not just in their own operations and supply chains, but also in numerous related ones.

Large enterprises are evaluated in a wider scope.
Large enterprises or companies with specifically complex operations may face higher risks in more areas, as they are more likely to have multiple supply chains or operate in various countries. The B Corp certification process is tailored to a company’s size and complexity. Large enterprises are required to meet even more rigorous standards and undergo deeper risk and eligibility checks, which we fully support. The parent companies, subsidiaries, or other business relations are included in the evaluation of the company that wants to certify. Large and multinational enterprises are also obliged to make their full assessment transparent, can have additional baseline requirements and participate in the B Movement Builders program. Moreover, additional requirements apply for every company that operates in relation to controversial issues.

Frontrunners need to stay recognized.
Every movement has its founders and frontrunners who should be recognized as such. It’s important that the B Corp movement is better understood as a community that has variations in performance. There are some B Corps that are ahead and leading when it comes to being a business for good. They are often built on a foundation formed by a social or environmental business model from the start. These B Corps could be an inspiration for large enterprises. We should evaluate B Corps based on their performance as businesses, rather than on whether they are B Corp certified or not. The real question is not whether to become a B Corp, but how to be the best B Corp possible. In this way, everyone has a role to play in continuously raising the bar of being a business for good.

Read our case study on Danone joining the B Corp movement:

In short: to achieve systemic change and transform the global economy, we all need to do better. Excluding large enterprises from the B Corp movement will only further divide us who want to achieve positive change. It’s important to understand that all companies must start their sustainability journey somewhere. We therefore support large enterprises being a part of the solution towards sustainability. And for those that are willing to transform, we are keen to see what B Corp – whether the B Impact Assessment or B Corp certification – can offer them in support of this change.

Read more about frequently asked questions to B Lab about large enterprises becoming a B Corp.