Reflections on the new B Corp standards from someone who’s been on both sides of the certification
Debbie Thackray
Impact Director
Debbie Thackray, Impact Director, discusses why this next chapter in the B Corp movement matters and how we can navigate it together and with intention.
I joined B Lab UK in 2020, two weeks into the first pandemic. Our community was around 300 companies; all of whom were passionate advocates for change and outspoken in their drive to be a force for good within the business landscape. Fast forward four and a half years, as Impact Manager, I had the privilege of walking alongside and celebrating that community as it grew to more than 2,500 B Corps; collectively delivering positive impact for people and the planet.
Today, I now have the joy of seeing the new standards launch from the other side of the table – as Impact Director at AG Communications; a B Corp I hold in incredibly high regard for their commitment to their purpose and their progress as advocates for equality for women and girls and climate action. AG focuses on how we can create shared value for all; through the clients we support, the people we choose to work with, the non-profits we campaign alongside and for the spaces we create, to give a voice to all.
So, as these new B Corp standards are shared and dissected, and companies begin the process of understanding how this applies to their operations and what work they might need to do to meet these new expectations, here are some observations:
#1. Expect a shift from ‘what’s happened’ to long-term strategic plans and evidenced progress
Across the standards there are many compliance requirements that demand evidence of advancement of impact plans, starting in the first year, then recurring in year three and year five.
This means companies can no longer certify and remain stagnant between each recertification round, they need to demonstrate continual progress at a respectable rate to justify the badge of being a company that meets high standards of social and environmental performance, transparency and accountability. B Corps will need to evidence what they plan to do, how that plan is progressing and where they are trying to reach beyond a 12-month view – it's not a snapshot, it's a continual public plan with milestones.
Developing an ESG strategy and tracking targets will become a business priority.
#2. Inherent shifts in leadership will occur, where the question ‘Does this serve our purpose?’ is prioritised above ‘Does this make us profit?’
Delivering long-term ESG strategic plans requires leadership to understand ESG and embed it across governance structures and all decision making.
This means leadership will need to build a collective understanding of the value of purpose in service of people and the planet and the corresponding risks of devaluing this in favour of profit generation. The new standards enforce the expectation that leaders who don’t take the time to educate themselves will be detrimental to progress and those only focusing on understanding financial risk, without context of people and planetary impacts, will soon have no place in the boardroom or management of future B Corps.
Increasing Board level ESG awareness and developing authentic leadership culture will be key.
#3. A move towards accepting change as a cornerstone of culture and embracing education in all its forms and origins
A company culture that is comfortable with being in discomfort, that doesn’t have every answer or form of expertise and can be humble enough to collaborate, connect and network with youth, non-profits, universities, supply chains and other companies – even competitors – to bridge those gaps will thrive.
As B Lab astutely articulates, “as human beings we are designed to do – to learn, to grow, to keep levelling up – collectively, that’s when real change happens”.
Collaboration and continuous improvement will be a priority for all roles in the business.
#4. Incorporating external, reputable organisations as a mechanism to increase in third-party verification
In support of increasing quality, validity and ease of process for verification by B Lab, the new standards appear to be leaning more heavily on their compliance requirements, requiring companies to use third party verification or approval of either data, statements of commitment or documents.
This means more evidence will need to be assessed by independent third parties, before it reaches B Lab. I encourage you to consider the potential for additional hidden costs and time allocation required here, for another business to verify information for your company, as part of the compliance components.
Identifying and achieving third party verifications will become a business necessity.
#5. Companies will have less ability to ‘flip flop’ when external pressures occur – they'll need to have a stance and honour it with authenticity
The new standards embed the requirement for public sharing of many elements, enforcing transparency and accountability – as well as authenticity.
This means the importance of language used, a company’s history of advocacy and progress of support will now become more visible and less susceptible to external pressures that traditionally influence board decisions to deprioritise ESG. On the new standards, B Corps will essentially need to decide (to a greater and more public degree) who they are and how they show up in the public space, outside of their service or product offering and as an active actor within society that holds influence and a voice.
Conscious and authentic focus and communication will be a priority internally with employees and externally with stakeholders.
#6. Use of the assessment framework to strategically align company growth with impact growth
As a company experiences growth, they will naturally progress through the tracks presented in the assessment, which each ask a defined set of questions and compliance requirements.
This means that B Corps who fail to use this assessment framework to map their ESG journey, alongside their company growth plans, will soon see significant jumps in expectations and maintenance of their certification. This will be especially evident when moving between the small (10-49 employees) and medium (50-249 employees) tracks where the variance in compliance to meet the environmental stewardship and circularity and climate action topics significantly differs.
A five-to-10-year Impact Strategy will truly centre stakeholder governance and pace for business improvement.
So, to leave you with something to consider, here are some lasting questions I have:
Which leaders will emerge who truly ‘go beyond’ the standards?
How will underlaying silent behavioural shifts to culture prove the value of stakeholder governance?
Who will be confident in their public commitments and transparency and who will shy away?
For those who won’t be able or don’t want to make the jump, what narratives will we start to hear?
For those whom the gap between standards is too great – for now – where can they continue their journey without losing momentum?
I encourage you to share your thoughts, while remembering that while these standards are a very needed and a critical evolution of how businesses step in and engage with society in a manner beyond profit generation, for many this will be a lonely and stressful experience, with a lack of answers and a minefield of information to digest.
So, if you’re looking for a friendly face to chat about all things B Corp with in a safe space, I will be hosting The B Club online where we can share our journeys, ask questions and check in on each other, as we all learn about the new standards and plan for our business transition.
As we move towards our own re-certification on the new standards, I’ll also make sure to share AG’s lessons learned and journey of change over the next six-eight months on LinkedIn; we hope you find some inspiration to keep going and to ‘go beyond’ as we believe in the value of our declaration of interdependence – the recognition that we are in a community and we move forward when we all do.
If you’d like to learn more and keep the collaborative conversation going, please...
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