B Corp Certification

Joyce Sou Jessica Friesen

1. Overview of B Lab & Vision

2. Why certify as a B Corporation

3. How to Get Started

Agenda

B Lab is serving a global movement ofPeople Using Business as a Force for Good

So that one day all companies compete to be Best for the World

And society enjoys ashared and durable prosperity.

The Global Movement

Canada

5

Evolution of Business

People are Demanding Better

Poll:

How interested are you in B Corp Certification?• I’m doing it• Interested, but something is standing in the way• I’m curious, but need to be convinced• I’m a skeptic• N/A

B Corporations

The B Corporation certification is to business what Fair Trade is to coffee and LEED is to green buildings.

1. Social & Environmental Performance

2. Transparency 3. Accountability

Companies using business as a force for good.

They meet verified higher levels of:

“B Corp certification further signals to our

stakeholders (coworkers, customers,

suppliers, and community) that our

values are truly at the core of our business.”

What is a B Corporation?

Environment100% green energy

Workers 50% full time employee participate in external professional development

Community1% of sales donated to environmental NGOs

Governance• Transparency

• Ownership

Workers• Job Growth

• Compensation & Benefits

• Employment Practices

• Work Environment

• Employee Ownership

Community• Suppliers

• Local

• Diversity

• Charity / Volunteerism

Environment• Energy Use

• Facilities

• Supply Chain

• Manufacturing

+ Impact Business Models• Direct Impact Products

/Services

• Targeting Underserved Communities

• High Impact Supply Chain

Areas of Assessment

B Corp Community = Good Company to Keep

16

+ 150 CAD B Corps

48%

26%

6%

1%

7%2%

4%6%

Benchmark performance

Attract and Engage Talent

Save Money and Access Services

Partner with Peers

B Corp Certification helps companies:

Show Leadership

Differentiate from Pretenders

Generate Press

Attract Investors

Why are you interested in becoming a B Corp?

• Maintain Mission

• Differentiate from Pretenders

• Benchmark and Improve Performance

• Attract and Engage Talent

• Other

Poll:

Maintain Mission

Adopting the B Corp legal standards:

• Bakes the values of the company into its legal DNA

• Gives protection and permission to consider non-financial stakeholders (community, employees, suppliers, environment)

• Ensures that mission can survive over time

Differentiate from Pretenders

Jennifer McKaig

“The biggest surprise to me was realizing that our employees deeply cared about the things the B Impact Assessment measured.”

Benchmark & Improve Performance

“87% believe that success of business should be measured in terms of more than just its financial performance ”

“Employees who are satisfied in their jobs because they believe in what they are doing have 16% better overall performance and 125% less burnout than their peers.”

“Almost two-thirds of millennials said they would rather make $40,000 a year at a job they love than $100,000 a year at a job they think is boring.”

• B Corp certification provides a platform to engage current staff and give employees more meaning in their work

Attract & Engage Talent

Partner with Peers: The B Hive

Collaboration

• For-Profit Companies of Any Size

• Any Industry / Geography

• Customized assessment based on industry, size, geography

• Any Legal Structure (sole proprietors, LLP’s, Corporations, etc.)*

• Companies over 1 year old – special Pending B Corp program for start-ups**

Who Can Become a B Corp?

** For more on Pending B Corp, visit: http://www.bcorporation.net/become-a-b-corp/how-to-become-a-b-corp

Meet Performance Requirement Complete the B Impact Assessment and earn a reviewed minimum score of 80 out of 200 points

Meet Legal RequirementDetermine the path for your corporate structure

Make it OfficialSign the Declaration of Interdependence, pay certification fees and and put a profile up on bcorporation.net

To learn more, visit:www.bcorporation.net/become-a-b-corp/how-to-become-a-b-corp

How Does a Company Certify?

Step 1: Do the AssessmentTimeline: 1.5 – 3 hours

❑ Create a B Impact Assessment Login

❑ Take a first pass of assessment

❑ Review initial score

❑ See how you stack up compared to 20,000 + that have taken the assessment

Step 1: Do the Assessment• Visit www.bimpactassessment.net to get started

Step 1: Do the Assessment

Step 1: Do the Assessment• Take a first pass – estimates are great at this stage

• Take a first pass – estimates are great at this stage

Step 1: Do the Assessment

Step 1: Do the Assessment

• Use ‘Revisit This’ and make sure to save your work

Step 1: Do the Assessment

Step 1: Do the Assessment

Step 2: Documentation & Review call ❑ Submit Assessment for Review (90% complete)

❑ Submit Documentation (as required) ❑ B Lab Staff will Schedule 90 minute call

❑ Review Assessment, refine score

Step 3: Follow up

❑ Update assessment (if necessary)

❑ Upload outstanding documentation

❑ Finalize score with B Lab staff

Step 3a: Fine Tune & Continuous Improvement

❑ If your score is below 80, use this opportunity to fine tune your plan to improve your score and deepen impacts

❑ Celebrate success! Each action you take is moving you down the path toward becoming a better company!

❑ Develop a timeline for certification & share with your team

Best Practice Guides

Step 3a: Fine Tune & Continuous Improvement

Step 3a: Fine Tune & Continuous Improvement

Adopting the B Corp legal standards:

• Bakes the values of the company into its legal DNA

• Gives protection and permission to consider non-financial stakeholders (community, employees, suppliers, environment)

• Ensures that mission can survive over time

Meet Legal Requirement

• A legal entity that has protection and permission to consider its impact on all stakeholders, not just shareholders.

• Most benefit corporations are required to create annual reports on their positive impact.

• B Lab is an advocate behind the legislation

Benefit Corporation

Legal Requirements Term Sheet & Certification Fees ❑ Sign B Lab Term Sheet

▪ Certification term is 2-years▪ Participate in on-site review if randomly selected (10% of Certified B Corps

randomly selected each year)▪ Annual certification fees based on the tiered structure

Company Revenue Fee$0 - $499,999 $500$500,000 - $1,999,999 $1,000$2,000,000 - $4,999,999 $1,500$5,000,000 - $9,999,999 $2,500$10,000,000 - $19,999,999 $5,000$20,000,000 - $49,999,999 $10,000$50,000,000 - $99,999,999 $15,000$100,000,000 - $999,999,999 $25,000$1B+ $50,000+

Make it Official

Poll:

What is your next step?

• Start or complete the B Impact Assessment• Meet the legal requirement• Improve my score to be over 80• Complete documentation• Engage my team internally

Join us.

Redefine success in business.Help create the new economy. Build a better business.

Compete to be not only the best in the world, but the best for the world.

Resources▪ B Corp Press: http://www.bcorporation.net/news-media

▪ How to become a B Corp: http://www.bcorporation.net/become-a-b-corp/how-to-become-a-b-corp

▪ Legal Requirements: http://www.bcorporation.net/become-a-b-corp/why-become-a-b-corp/protect-your-mission

▪ FAQ for Investors & Directors: http://www.bcorporation.net/sites/all/themes/adaptivetheme/bcorp/pdfs/faqs_investors_and_directors4.pdf

▪ Pending B Corp Certification for Start Ups: http://www.bcorporation.net/become-a-b-corp/how-to-become-a-b-corp/steps-start-ups

▪ B Impact Assessment: http://bimpactassessment.net/

▪ Case Studies: http://bimpactassessment.net/case-studies

▪ Certification Fees; https://www.bcorporation.net/become-a-b-corp/how-to-become-a-b-corp/make-it-official