Questioning B Corp: Is the Shine Starting to Fade?
B Corps are praised as being the ultimate certification for companies committed to a better future, but are they living up to their name? As scepticism grows, this article delves into whether the B Corp badge is finally losing its shine. Is it an accurate and reliable mark of genuine impact, or simply a marketing tool?
Introduction
Certified B Corporations are businesses that meet high standards for performance, accountability, and transparency across a range of factors, from employee benefits and philanthropy to supply chains and material sourcing (B Corporation, 2023). Lauded as the crème de la crème of eco credentials, the B Corp badge has become a coveted mark in the business world (Waite-Taylor, 2022). The certification is renowned for its rigorous accreditation process and is seen as a business’ commitment to a better future.
However, questions are beginning to emerge. Some unlikely companies have earned B Corp status, leading to growing scepticism surrounding the certification’s true impact on sustainability. The once-bright B Corp badge may be losing its shine as doubts surface about whether the certification still holds its original promise. B Corp once pledged to the world a way to support sustainable and genuine businesses, but now many are wondering if it was all a dream.
Overview of B Corps
There are currently over 8,600 B Corps around the world, across 162 industries in 98 countries, with more than 790,000 workers (B Lab, 2023). The B Corp certification is a badge that sets apart businesses, from those with the sole purpose of making money to those who embrace environmental sustainability, social change, and helping the world become a better place. B Corps hold shareholders accountable for their contribution to the greater good, often prioritising this over generating profit (Walden University, 2019). And, with brands like Aesop, Patagonia, and Innocent Drinks under its umbrella, the B Corp badge has become highly sought after (B Lab, 2024).
Is the certification as impressive as it’s made out to be?
B Lab clearly states that their certification is hard to acquire and that it takes impressive commitment across five ‘Impact Areas’; Governance, Community, Environment, Customers, and Workers (B Lab, 2024b). To obtain the certificate, companies must score a total of 80 points or more across the impact areas, whilst the median score for businesses globally is 50-55; making it sound like an impressive feat. However, since the overall score is derived from five different categories, companies can still achieve certification; even if they score poorly in some areas, as long as they compensate with higher scores in others. Take the coffee company Nespresso Global, which has marginally surpassed the 80 minimum with a score of 84.3. B Lab claims that the ‘Workers’ category usually has 40-50 points available (its high value perhaps signifying its importance), yet Nespresso scored a mere 22.6 in this impact area (B Lab, 2024b). This is evidence that businesses can attain B Corp status, despite significantly underperforming in important areas such as its employees. Whilst it may be impressive to attain 80 points overall, the accreditation does not require a well-rounded commitment to ESG, leaving the possibility of neglect in some key areas.
Questionable B-Corps
B-Lab has come under scrutiny for awarding Nespresso its precious B Corp badge, as the company has been under investigation for several counts of child labour across its coffee farms in Central America (Hodal, 2020). Nespresso’s parent company, Nestle, produced a 41-page Tackling Child Labour 2019 report, it was only a year later in 2020, that Channel 4 Dispatches exposed their use of child labour. This begs the question, how does a company that has been so recently involved in child labour be awarded a certification praising their commitment to social progress, transparency, and accountability?
Nespresso Group isn’t alone. Another example is Athleta, a fitness clothing brand which obtained B Corp status in March 2018. Not only is Athleta’s Workers impact less than half the average at 19.7 but it is also owned by parent company GAP. GAP has been under criticism for many years for its contribution to the fast fashion industry. Once again, this begs the question: how does Athleta, which is owned by a fast fashion, hyper-consuming conglomerate, obtain a certificate for sustainability?
Another contentious B Corp is Tony’s Chocolonely. This Dutch chocolate brand claims to be ‘crazy about chocolate, serious about people’ on its mission to make 100% exploitation-free chocolate (Tony's Chocolonely, 2024). However, their chocolate supplier Barry Callebaut has been involved with several counts of child labour claiming that ‘by 2025, we will eradicate child labour from our supply chain’. However, in 2022 19% of their farmers still had no systems in place to monitor or eradicate child labour (Barry Callebaut, 2021). Once again, should Tony’s be awarded B Corp certification if its chocolate supplier is taking part in child labour? Despite announcing in 2021 that they hope to eradicate this in four years – they don’t seem to be in a rush.
What needs to change?
It is clear that B Corps do have a valuable place in society, they are certainly on a mission to create a better future, but they aren’t there yet. B Lab has work to do; its accreditation process seems much too easy (despite claiming otherwise) as dubious companies slip through its cracks. Currently, B Corps must undergo recertification every three years, but a lot can change in that time. If B Lab truly values transparency, it should consider reducing its recertification period to ensure companies are consistently held accountable. Moreover, B Lab must begin to address controversies more seriously and more promptly, as its reputation and legitimacy are threatened with every question of accreditation. Lastly, B Lab must enforce a policy of continuous improvement. Companies that regress or exhibit stagnant progress should be reviewed, with clear expectations for intervention to ensure they progress.
B Corp’s promise is an exciting one, but recent controversies suggest there is work to be done. If B Corp hopes to pave the way for sustainability, it must address its flaws, hold its companies to a higher standard, and ensure that their badge genuinely represents a commitment to meaningful change. If they don’t, the B Corp badge’s shine may fade away entirely.
References
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B Lab (2023). What is a B Corp? - B Lab. [online] bcorporation.uk. Available at: https://bcorporation.uk/b-corp-certification/what-is-a-b-corp/ [Accessed 25 Apr. 2024].
B Lab (2024a). Find a B Corp. [online] www.bcorporation.net. Available at: https://www.bcorporation.net/en-us/find-a-b-corp/ [Accessed 25 Apr. 2024].
B Lab (2024b). Nespresso Global - Certified B Corporation - B Lab Global. [online] www.bcorporation.net. Available at: https://www.bcorporation.net/en-us/find-a-b-corp/company/nespresso-global/ [Accessed 25 Apr. 2024].
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Barry Callebaut (2021). Forever Chocolate Progress Report 2021/22. [online] Available at: https://www.barry-callebaut.com/system/files/2022-12/Zero%20Child%20Labor_Forever%20Chocolate%20Progress%20Report%202021-22%20Barry%20Callebaut_0.pdf [Accessed 26 Apr. 2024].
Hodal, K. (2020). George Clooney ‘saddened’ by alleged child labour on Nespresso coffee farms. The Guardian. [online] 26 Feb. Available at: https://www.theguardian.com/global-development/2020/feb/26/george-clooney-saddened-by-alleged-child-labour-on-nespresso-coffee-farms [Accessed 25 Apr. 2024].
Tony's Chocolonely (2024). Our Mission. [online] Tony’s Chocolonely. Available at: https://tonyschocolonely.com/us/en/our-mission [Accessed 26 Apr. 2024].
Waite-Taylor, E. (2022). The B Corp certified brands in the UK doing good for the planet and its people. [online] The Independent. Available at: https://www.independent.co.uk/extras/indybest/b-corp-certification-uk-companies-b2014626.html [Accessed 24 Apr. 2024].
Walden University (2019). The Advantages of Being a B Corp | Walden University. [online] Waldenu.edu. Available at: https://www.waldenu.edu/online-masters-programs/master-of-business-administration/resource/the-advantages-of-being-a-b-corp [Accessed 25 Apr. 2024].