The encyclopedia · R&D & Science · Strategic decision · 2006
B Lab created one auditable standard of good, and B Corp certification spread worldwide
B Corp certification audits a company's whole social and environmental impact against one standard and locks in legal accountability.
B Lab
the move
Companies made vague sustainability claims, but with no shared measure a customer could not verify them, and 'green' claims were little more than marketing.
In 2006 B Lab was founded to build the missing infrastructure: a certification standard for companies that use business as a force for good.
It scores a business on governance, environmental practice and treatment of employees, supply-chain partners and community, and demands a legal structure that holds the company accountable to stakeholders, not only shareholders.
Because one standard applies across industries and is independently verified, B Corp converts a fuzzy promise into an auditable badge that companies use to win credibility, talent and investor trust.
why it works
- Auditing the whole company beats checking a single product or label.
- A legal accountability structure makes the promise enforceable.
- One transferable standard lets any industry be compared on the same scale.
- Third-party verification separates a real commitment from greenwashing.
what transfers
To make a fuzzy claim credible, replace adjectives with a single auditable benchmark and pin it in law, so trust comes from measurement and accountability rather than marketing.
what came after
B Corp grew from a handful to thousands of certified companies across more than 130 industries and 67 countries, including Patagonia and Ben and Jerry's. The standard is continually revised and has become a global shorthand for a company accountable to more than shareholders.
references
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