1 of 52

Lisa : Welcome - some house keeping notes, we will be recording this webinar, we ask that you please mute yourself while watching today, until the Q&A section where Alice may ask you to come off of mute. We are also going to be covering the B Impact Assessment version 6 (as this webinar is being presented in late Oct of 2024). Today we will be sharing a lot of information If you have questions please put them in the chat and we will do our best to answer them at the Q&A section at the end of the webinar. It is my pleasure to begin this this webinar B Corp 101: demystifying the certified b corporation movement.

Our panel of speakers today all have extensive experience working with certified b corporations. Each speaker will introduce themselves during their segment of the program.

2 of 52

Welcome from Hosts

Lisa read: Welcome to our program, my name is Lisa Geason-Bauer and I the President of Evolution Marketing a women-owned WI based Certified B Corporation, we have been providing sustainability consulting and ethical marketing communications services to the business community since 2007. I am also a co-founder of B Local WI and our current President. It is my pleasure to welcome all of you to our first B Corp webinar on behalf of myself and our other co-host Jeffrey Steward the Founder of Enharmonic Encounters.

Jeffrey and I are both founders of B Corps and involved in our B Local communities (i.e. in WI and Texas), we are people using business as a force for good. One of those tools that we have deep knowledge of is the B Impact Assessment. We actually met during the first cohort of B Lab US and Canada’s training program for Trained B Consultants back in spring of 2023.

This series of webinars was created because we get questions all he time from businesses who are curious about the B Corp movement, and we wanted to share some of our tips and strategies, best practices in order to help folks who want to become B Corps.

3 of 52

Michigan Wisconsin Texas Illinois

Today’s Speakers

4 of 52

Thank you to our Promotional Partners

Jeffrey read:

We want to thank our promotional partners, who have helped us to promote these webinars and are striving on a daily basis to help businesses in our regions of Michigan, Texas and Wisconsin to operate in a socially and environmentally responsible manner. You can learn more about each of these regional organizations by visiting their websites (Leah drop links to each of the 4 organizations websites into the chat). We also have representatives here today from each of these respective organizations… you can direct questions about B local WI or the WI Sustainable Business Council to Lisa or Leah. Questions about B Local Texas should be directed to Jeffrey and we are pleased to welcome Alice Jasper who is the program director for People First Economy, who manages the B Local Michigan program. We are happy to welcome Alice who also attended the B Consultant training with us last year, as our event MC today. Welcome Alice

Jeffrey: Mention the B Locals (B Local Wisconsin, B Local Texas, People First Michigan [Michigan]). B Local WI and WI Sustainable Business Council is with Leah and Lisa. At the end, welcome Alice for her MC portion (she is a Trained B Consultant).

5 of 52

Alice Jasper (She/They)

Program Director with People First Economy
Trained B Corp Consultant
B Local Michigan Committee Co-Chair
Creator/ Host/ Producer of “Color Out Here”

Your MC:

6 of 52

What Is B Corp Certification And Is It Worth It?

B Corporation

B Corp Certified companies are a community of leaders, driving a global movement of people using business as a force for good. The combination of third-party validation, public transparency, and legal accountability help Certified B Corps build trust and value.

The B Corp Certification is administered by the non-profit B Lab

7 of 52

B Corp Certification is the only certification that measures a company’s entire social and environmental performance.

The certification uses the B Impact Assessment which evaluates how your company’s operations and business model impact your workers, community, environment, customers, and governance.

From your supply chain and input materials to your charitable giving and employee benefits, B Corp Certification proves your business is meeting high standards of verified performance.

B Lab US/CA

8 of 52

Certified B Corp Manifesto

Consumers Want Transparency → Shifting the Way Business is Done. Certified B Corps™ Are Leading a Movement Using Business as a Force for Good.

9 of 52

Verified Higher Standards of Performance:

Soc. & Envir. Performance

Min. 80 on B Impact Assessment

2. Accountability

Certify every 3 years.

3. Transparency

Publish B Impact Online, Legal, Fee

10 of 52

Pillars of the B Corp Movement

B Lab’s Three Pillars of Change

Stakeholder Governance:

People and the planet must be of equal, or higher, value than short-term profits. In this new paradigm, businesses that help all communities heal and thrive are rewarded. A stakeholder-centered economy is the triple bottom line in action, a system in which human and environmental well-being are essential.

Racial Equity:

True racial justice requires listening and learning. It means doing the work to dismantle unjust policies and practices and building more just business models and organizations. It means showing up as imperfect partners and embracing vulnerability with bravery, humility and compassion.

Climate Justice – There is No Planet B:

Humanity depends on our planet to survive, and the planet depends on humanity. Healing our home requires ending win/lose practices that provide wins for businesses and losses for the planet and its most vulnerable people.

11 of 52

The B Impact Assessment (BIA)

Environment

Learn what your company can do to improve its overall environmental stewardship.

Community

Learn what your company can do to contribute to economic and social well-being of the communities in which it operates.

Governance

Learn what your company can do to enhance policies and practices pertaining to its mission, ethics, accountability and transparency.

Workforce

Learn what your company can do to contribute to the financial, physical, professional, and social well-being of your workforce

Customers

Learn what your company can do to improve the value that your products and services create for your direct customers

12 of 52

The B Impact Assessment (BIA)

Comprehensive and Holistic

Considers all stakeholders and focuses on positive impact.

Objective & Aspirational

- Questions are verifiable, stakeholder driven and independently governed

-Intentionally Challenging

Standard Yet Adaptive

Tailored based on a company’s size, sector and location. Benchmarks for impact area, topic and question

Community Based

-Relies on user feedback.

-Leverages other third party standards and certifications

13 of 52

Building An Inclusive B Corp Movement

Historic Barriers to Inclusion
Why Inclusive, Accessible Growth of the B Corp Movement is Imperative
Pathways Forward…

14 of 52

The Path Forward: Building An Inclusive B Corp Movement

15 of 52

Global Community of Practice

16 of 52

B Corp Networks

Industry-Based

B2B B Corps
B Tourism
B Corp Beauty Coalition
B + EOS Network
Built Environment Network

Impact-Based

B Corp Climate Collective
B1 Network

Networks are self-organized groups that regularly come together for peer learning, resource creation, best practice sharing, and community connection.

Role-Based

B Corp Marketers Network
Talent & Culture Network

Identity-Based

Black, Indigenous, and People of Color Community
We The Change
B Proud

Region-Based

B Local

bcorporation.net

16

17 of 52

Shift taking place in business world today, movement from SHAREHOLDER Economy to STAKEHOLDER Economy

18 of 52

19 of 52

Lisa Geason-Bauer (she/her) Sustainability Practitioner

www.GreenMkting.com

Unpacking B Impact Assessment & Key Data Needed

Hello Again, my name is Lisa Geason-Bauer and I am a practitioner of sustainability. What that means is that I am not going to ask you or your business to do anything that I have not already done with my business or with one of our clients. As of today, Evolution Marketing is currently going through our third certification process with B Lab. Many of the things that I am going to cover in this section of our program are directly tied to what I have learned helping companies and in many cases manufacturing companies to become B Corps since 2016.

As you can see EM is proud to have a number of third party verified certifications. I am sharing this diverse list of certifications with you, so that you can understand that at the heart of the B Corp certification is the concept of continuous improvement which is also at the heart of many sustainability initiatives. What is nice about the B Impact Assessment is that it takes other third party audited sustainability certifications.

20 of 52

STEP ONE:

Speak with Business Leadership….

Ensure they are serious
Willing to put resources to the process (staff time, fee’s etc)
Able to adopt B Corp Legal Framework (i.e. stakeholder governance)

So your company wants to become a B Corp…..

To become a Certified B Corp takes time and effort. This is not something you decide one day you want to be, based on my experience helping companies to become Certifed B Corps, it will take about a year to be B Corp ready and then another year to work through the process with B Lab

As a practitioner of sustainability (meaning someone who works with companies / organizations daily to implement sustainable business practices, actions, and strategies), I believe that it makes sense to put some time into determining if your company has the resources, and leadership support to become a B Corp. This process could take multiple years depending on how large your company is, and how it is structured etc…. As someone who owns a company and as a sustainability consultant who I do not like to waste time and money, so therefore I

21 of 52

What does B Corp Legal Framework look like?

Dependent on Business organizational structure
State your business is incorporated in

Examples:

WI - Benefit Corporation law passed in 2018 (ONLY for S Corp, who can elect to be organized as a benefit corp.)
MI - NO law

adding “purpose and directors clauses” to operating agreement (if LLC/LLP)
Including in B Corp Agreement for Certification

Certified B Corporations are legally required to consider the impact of their decisions on all of their stakeholders.

22 of 52

STEP TWO:

Confirm your business is eligible to become a Certified B Corp

For profit entity
Operating for at least 12 months
Identify controversial industries that could have an impact on your certification.

So your company wants to become a B Corp…..

23 of 52

Certain industries and practices are flagged as controversial by B Corp standards due to their potential for significant negative impact.
Risk standards are additional minimum standards that companies in industries or with practices with potential negative impacts must meet to be eligible for B Corp Certification.
It is important to review B Lab’s updated list of Controversial Industries before completing the B Impact Assessment.

Possible Implications:

Eligibility for B Certification
Transparent Disclosure

Controversial Industries…….Unpacked

24 of 52

STEP THREE:

Review the Disclosure Questionnaire (DQ)
The Disclosure Questionnaire provides a confidential way for the company to inform B Lab about any sensitive business practices, fines, or sanctions involving the company or its partners, without influencing their score.

Possible Implications:

Transparent Disclosure
Company could have to implement specific remedies to obtain or maintain the Certification, and in rare cases the company's Certification will be denied or revoked.

So your company wants to become a B Corp…..

The B Impact Assessment is a positive impact assessment, meaning that companies earn points for the positive impacts they have on various stakeholders. While there are no negative points in the assessment, the B Impact Assessment also includes an unweighted Disclosure Questionnaire. This section asks a series of Yes/No questions that allow a company to confidentially disclose potentially sensitive industries, practices, penalties, and outcomes that a company or its partners might be involved in. For example:

Company is involved in production of or trade in tobacco (Yes/No)
Company facilities are located adjacent to or in sensitive ecosystems (Yes/No)

Responses to the Disclosure Questionnaire do not affect a company’s numerical score on the B Impact Assessment. For companies pursuing B Corp Certification, the Disclosure Questionnaire is used in conjunction with background checks and B Lab’s public complaints process to identify material negative impacts. If B Lab determines the item to be material, it may merit further transparency, and the company will be notified to provide incremental disclosure in their B Corp Profile. In certain cases, the company will be required to implement specific remedies to obtain or maintain the Certification, and in rare cases the company's Certification will be denied or revoked. More information about this requirement of the certification can be found here.

25 of 52

Employees (how many, where they live, work, multiple countries)
Wages (for all employees, full-time, part-time, contractors, interns)
Organizational Benefits (Employee handbook)
Donations (cash given to nonprofits, pro bono services, hours employees paid to volunteer for nonprofits)
Local and Independent Suppliers/Purchases
Profit & Loss Statement
Environmental Metrics (energy, water, carbon, waste, composting)

Pro tip: Plan to track this data yearly!

Operational Data to be Tracked

26 of 52

Employee metrics and associated data^*
Supplier expenses^*
Donations (cash / pro bono) & staff volunteering hours (separate ledger line)
Environmental metrics (EMS)
Track all of your organizations third party audited certifications (ISO, organic, fairtrade, etc..)

Pro Tip: Complete the initial verification template from B Lab before answering the questions in the B Impact Assessment

Examples of Operational Data to be Tracked

27 of 52

Reminder

28 of 52

Becoming a B Corp educational webinar (1 hour of content): https://blabuscan.thinkific.com/courses/u-s-canada-becoming-a-b-corp

B Corp readiness Guides & Check Lists

B Corp Legal Framework Guide

B Lab US & Canada also offers B Corp readiness webinars, more resources and information at: https://usca.bcorporation.net/process-requirements-fees/

Resources from B Lab US & Canada

29 of 52

Leah Steinberg (She/Her)

Sustainability Consultant

www.GreenMkting.com

Understanding Impact Business Models (IBMs)

30 of 52

There are two main categories of questions in the B Impact Assessment: Operations and Impact Business Models.

These categories are scored separately, and together they make up your Overall B Impact Score.

Introduction to Impact Business Models (IBMs)

31 of 52

“Impact Business Models (IBMs) are the ways that a business is designed to create a specific positive benefit/outcome for one of its stakeholders. They may be based on their product, a particular process or activity, or the structure of the business.”

Introduction to Impact Business Models (IBMs)

Key Characteristics:

Specific and Material: Focus on substantial and measurable impact.
Verifiable and Lasting: Impact is enduring and can be proven.
Aligned with Mission: Reflects the company’s core purpose and values.

32 of 52

Each Impact Area concludes with unweighted (gating) questions to assess whether an IBM (Impact Business Model) might be relevant.

Based on answers to these unweighted questions, Impact Business Model topics will be unlocked.

Company size and industry/sector also play a role in determining which IBMs are applicable to your company.

Accessing Impact Business Models

33 of 52

IBMs are one of the more complex parts of the B Impact Assessment.
Most companies have 0-2 IBMs.
Earning credit for an IBM is difficult, and it’s rare for a company to have 3 or more applicable IBMs.
If you unlock 3+ IBM topics, revisit your assessment to focus on one or two IBMs that best align with your business model.

Understanding IBMs

34 of 52

Typical Score Range: Most IBMs score up to 30 points.

Exceptions: Some IBMs, like Workforce Development, can score higher based on their broader impact.

A company's impact can generally only be attributed to one IBM and cannot be used to fulfill multiple IBMs unless it pertains to distinct areas of the business. In other words, double-counting the same impact across different IBMs is not allowed.

Scoring Impact Business Models

35 of 52

A company needs to provide supporting data/evidence/documentation in order to receive credit for an IBM. For some IBMs, several years of documentation may be required (Designed to Give, Local Economic Development).

This step will occur during the Verification process.

Questions requiring documentation will be marked with a cloud icon.

Examples of documentation include: Employee Handbook, Code of Conduct, Donation Records, Supplier Information, etc.

Supporting Documentation for IBMs

36 of 52

37 of 52

You can find specific guidance for questions by selecting ‘Learn’ or ‘Documentation Instructions’ at the question level, especially when documentation is required.

Supporting Documentation for IBMs

38 of 52

Examples of IBMs

Designed to Give

This IBM recognizes business model structures that have standing commitments to provide significant portions of company profits, revenue, equity, or time to charitable causes.

Evolution Marketing is committed to donating at least 5% of our time yearly (in the form of pro bono services) to assisting non-profits, local educational institutions and the regional workforce development board with their work in the environmental and social advocacy space.

39 of 52

Examples of IBM Documentation

Impact/Giving Reports

Employee Handbook/Code of Conduct

40 of 52

Learn More (in B Impact Assessment)
Documentation Instructions (in B Impact Assessment)
Knowledge Base
Get Help on B Lab U.S. & Canada website
Understanding the Standards on B Lab Global website

Impact Business Model Resources

-Learn More: On each question in the top left corner, usually there is a Learn More button that gives more of an explanation on what the question is asking (demonstrate in the next slide).

-Documentation Instructions: When questions are selected for documentation, toward the bottom right of the question text you will see “Documentation Instructions” with further insight (demonstrate in the next slide).

-Knowledge Base: A repository of helpful information that users can navigate on their own to find answers to commonly asked questions relating to a product or concept.

-Get Help on B Lab U.S. & Canada website: Navigate to the bottom right on the green Get Help button where you can email the team directly, in addition to accessing the Knowledge Base.

-Understanding the Standards: Read more into the frameworks that go into the construction of the standards, and even navigate to the microsite on the Evolution of Standards (for those considering Certification in the long term, you may be held to these standards instead of the current standards).

41 of 52

www.enharmonicenc.com

Jeffrey D. Stewart

Post-Submission Steps and Key Data Needed

42 of 52

Evaluation

Complex Structure Review (if applicable)
Controversial Industries Review (if applicable)
Legal Requirement
Track Information
Impact Business Models

Verification Queue

Documentation upload

Standardized
Impact Business Models

Verification

In-depth review of the B Impact Assessment from elements covered in Evaluation and documentation uploaded in Verification Queue

What to Expect After Submission

43 of 52

B Lab uses a discovery and scoping process to assess a company's legal and operational structure. This process helps determine requirements for the rest of the process.

Types of Complex Structures:

Multinational operations
Subsidiaries and holding companies
Joint ventures and partnerships
Companies with revenue of $100M

Note: Companies with annual revenues over $100 million must engage directly with B Lab through this process. Companies with similar complexities but lower revenues can generally navigate the certification process using the guidelines provided, without needing formal discovery and scoping.

Pre-Scoping Requirements for Complex Structures

44 of 52

Once B Lab reviews the company’s corporate structure and scoping data, they will determine final guidance for Certification.

Possible Implications:

Multiple legal requirements
Multiple B Impact Assessments
Transparent Assessment
Site Review
Affiliated Company Certification Requirement (ACR)
B Movement Builder

Implications of Complex Structure Reviews

Mention different triggers from complex structure reviews for larger companies:

-Legal Requirement accountable to multiple entities

-More than one Assessment (Verification fee)

-Transparent Assessment

-Site Review

-ACR

Companies interested in the B Corp Certification that share the same name or same brand as related entities, be they a parent company, sister companies, or in certain instances a

franchisor, may trigger what is known at the Affiliated Company Certification Requirement, or ACR, applicable to the related entity or entities in question.

The ACR is an engagement and brand-risk mitigation tool that enables eligible companies with a shared name or brand as another related entity to certify independently, while triggering a requirement that the related entity or entities in question commit to achieving B Corp Certification within six [6] years time. Eligible companies are those that generate less than $1

Billion USD in annual revenues, including both the certifying entity, and the affiliated company triggering the ACR.

The ACR is intended to help enable B Lab to certify a distinct part of an overall business, that remains complete with its own management and legal structures, executive accountability, and control over product / service, and to build up grassroot interest and certification momentum within the broader business, while simultaneously mitigating brand risk of related non-certified companies. In order to be eligible for the ACR, a company will likely need to be in a different geography [country market] from its parent or sister entities that share the same brand, otherwise entities may be determined or required to certify together, given uniform branding.

Subsidiaries with the Same Name / Same Brand as a non-Certified Parent [whose parent generate less than $1B in annual revenues]. Should the parent generate greater than $1B in annual revenues, the company is eligible to proceed and triggers a requirement that the Parent become a B Movement Builder [the ACR will not apply].

-B Movement Builder

The B Movement Builder program is designed as a journey to foster real transformation and change, aligned with the principles of the B Corp movement and allowing for impact throughout the process. It creates a pathway for multinational companies to start their journey towards a real impact transformation. It facilitates the adoption of standards for MNCs to manage their impacts as well as creates a pathway for multinational companies to move towards becoming certified B Corps, if they wish to do so.

The program enables eligible companies with a shared name or brand as their top-level parent to certify independently, while stipulating that the parent company becomes a B Movement Builder within three [3] years. This is a conditional for recertification eligibility.

While in the BMB program companies can:

progress on their B Corp Certification journey as the program is fully harmonized with the certification requirements. Certify subsidiaries (when operationally complete & distinct)
work with B Lab to design a customized, detailed pathway for the whole company to adopt standards to manage their impact as well as work with other MNCS, collectively, to exchange opportunities, challenges and actions
show company engagement with the B Corp movement, supporting the B Corp Movement through different possibilities of collaboration
work towards alignment of governance structures in the business community and the capital markets that create value for all stakeholders

Companies participating in B Movement Builders will therefore not necessarily meet the same social and environmental performance standards as Certified B Corporations. Before joining the program, companies must undergo a Risk Review to determine eligibility; in order to participate, they must demonstrate meaningful progress on key goals related to their social and environmental performance as overseen by our Standards Advisory Council.

45 of 52

B Lab reviews the potential negative impacts that companies generate in their operations.

Review the list of industries flagged by B Lab as controversial.

Possible Implications:

Eligibility for B Certification
Transparent Disclosure

Controversial Industries

46 of 52

Verification Queue Tasks

47 of 52

Initial Verification Template

48 of 52

Adhere to instructions in the tasks. Each task will have a specific due date. If you have questions, leave a comment in the task for the analyst to review.
Complete tasks on time to ensure your company remains on track.
Pay attention to notifications. Notifications are sent via email when the analyst leaves a comment or a new due date in the Assessment.

Tips: Logistical Success in Verification

49 of 52

Question and Answer - moderated by Alice

50 of 52

Future Webinars

Register Here:

51 of 52

Future Webinars

Register Here:

52 of 52

Lisa Geason-Bauer & Leah Steinberg Contact

Evolution Marketing: https://www.greenmkting.com/contact

Alice Jasper Contact

People First Economy: https://www.peoplefirsteconomy.org/contact/

Jeffrey D. Stewart Contact

(scan QR code)

Contact Us: