Why B Corp certification isn’t enough…

By: Mark Odegard, Measure Meant Social Impact Consulting

B Corp certification is widely viewed as being the most comprehensive assessment of a company’s practices. And it isn’t just about marketing and virtue signaling: Investors increasingly see the B Impact Assessment as the best way to evaluate companies and support their investment decisions. Consumers view it as a way to quickly evaluate whether a company aligns with their values.

But the certification itself, like many certifications, is principally a financial tool. And from the perspective of actually making an impact on sustainability it is mostly meaningless, particularly when certification is viewed as the end of a journey.

B Corp certification should be viewed as a way point, a cairn, on the trail to real sustainability, resiliency, and meaningful impact. The certification provides direction and validates you are on the right path. It is helpful to know you are headed the right way, but you still have to keep walking down the path.

Seasoned practitioners of Lean, the management methodology created by Toyota and marketed in the US, often say they’ve only taken a few steps in their journey when asked about their experience with and knowledge of Lean. They realize that mastering Lean and knowing how to maximize impacts inside a company is a long and difficult process because Lean is a way of thinking and being.

Companies frequently say they have implemented Lean into their operations, as if Lean comes out of a box and is installed on everyone’s desk. Saying that Lean has been “implemented” means nothing unless a company inculcates the practices fully into its operational management and embeds the belief system deeply in their company culture. Lean only works when employees change how they think and behave in their role. Those with experience know whether a company is really committed to Lean because they hear it when they talk with employees and leaders and see it in operational execution.

In the same way, sustainability is a mindset that has to be embedded in the culture if a company wants to make a real impact for workers, customers, community, and the environment. Employees and leaders at every level must consider the social and environmental impact of every decision. Sustainability must be part of how employees think and behave, it must become who they and the company are. Like Lean, it is easy to tell when the commitment to sustainability is more than just words — you can see it and hear it.

B Corp certification itself is a status, a signal. Obtaining the certification doesn’t inherently increase impact, it only provides validation. However, the B Impact Assessment (BIA), the foundation for certification, is a valuable sustainability tool because it allows companies to evaluate and establish a baseline for their practices.

The BIA is free. Companies can use the BIA to quickly evaluate their underlying practices and determine where basic gaps might exist. They can also use it as an in-depth analysis to find opportunities for more significant change. Improvement strategies can then be developed for companies that are committed to becoming more sustainable. Using the BIA is effective for setting a direction for improvements. And certification can follow for those interested.

However, as a global community we don’t need B Corp certification. We need Boards of Directors, company leaders, and employees to prioritize sustainability. We need business consultants to look beyond certification and advocate for sustainable practices and cultural change. We need mayors, city councils, and community leaders to recognize they have a responsibility to promote sustainability and hold businesses accountable. We need sustainability to be an entrenched mindset.

Companies ask about the business case for being sustainable because they think it is too expensive. Leaders and employees are reluctant because they believe it requires change, is inconvenient, and adds more work.

Local city governments contend sustainability is outside of their control and for the state or federal government to solve. They contend it is too expensive.

Individuals feel powerless or overwhelmed. They believe their actions won’t make a difference. And like local governments they look for others to solve the problem.

B Corp certification doesn’t fix any of this. People fix this. People who work for companies, who live in communities, who all live in a natural environment.

When purchasing products or services, we should support Certified B Corps because they are making an effort. But that isn’t enough, we should expect more from companies than just certifications. We should expect to see their greater purpose in everything they do.

And as humans we need to engage more actively. And when we do, we’ll know it when we see it.

Learn more about how you can make an impact.