What is a B Corporation?

A B Corporation is a company certified by the nonprofit B Lab for meeting verified standards of social and environmental performance, accountability, and transparency.

How does B Corp certification work?

You complete B Lab's Impact Assessment, score at least 80 out of 200 across governance, workers, community, environment, and customers, then hand over documentation for verification. You also amend your governing documents so directors must weigh all stakeholders, not only shareholders. Recertification comes every three years.

Why does being a B Corp matter?

It is a checkable claim in a market full of unverifiable ones, because the score is audited and published. For startups it helps with recruiting and with enterprise buyers who screen vendors on values. It is not a tax status, and it does not change how investors get paid.

Where did the B Corporation come from?

B Lab launched the certification in 2006. It is separate from the benefit corporation, which is a legal entity type available in most US states, and a company can be one, both, or neither. B Lab publishes the full standard and every certified company's score.

How do you decide whether to certify?

Run the free assessment before you commit, because the gap is usually in governance and worker policy, not recycling. Weigh the annual fee and the three-year recertification against what the label actually buys you with your buyers. Treat your first score as a benchmark, not a verdict. And do not certify to repair a reputation, because the assessment is public.

Bottom line: B Corp certification is an audited, public score, which makes it worth more than a values page and a lot more work than one.

For more startup terminology, visit startupdefinitions.com.