What are the Hassles of Becoming a B Corp? | Kevin Chin

Becoming a B Corp is a significant decision for any business that wants to balance purpose and profit. B Corps are companies that meet the highest standards of social and environmental performance, public transparency, and legal accountability. While the benefits of becoming a B Corp are substantial, the process of certification can be challenging and time-consuming. In this article, we will discuss some of the hassles of becoming a B Corp.

  1. Completing the B Impact Assessment

The B Impact Assessment is a comprehensive tool that measures a company's social and environmental performance against rigorous standards. The assessment covers a wide range of topics, including governance, workers, community, environment, and customers. Completing the assessment can take several weeks or even months, depending on the size and complexity of the company.

  1. Meeting the legal requirements

B Corps are legally required to consider the impact of their decisions on their stakeholders, including employees, customers, suppliers, community, and the environment. This means that the company's legal structure must be modified to reflect its commitment to social and environmental responsibility. This can involve changing the company's bylaws, creating a Benefit Corporation, or becoming a Certified B Corp.

  1. Financial investment

Becoming a B Corp requires a financial investment. The cost of certification varies depending on the size and complexity of the company. There is an annual certification fee based on the company's revenue, ranging from $500 to $50,000. Additionally, there may be legal and consulting fees associated with modifying the company's legal structure and completing the B Impact Assessment.

  1. Time investment

Becoming a B Corp requires a significant time investment. Completing the B Impact Assessment and modifying the company's legal structure can take several weeks or even months. The certification process can take up to six months, and companies must recertify every two years. The time investment can be a burden for small businesses with limited resources.

  1. Change management

Becoming a B Corp requires a significant commitment to change management. The company must be willing to make changes to its policies, procedures, and practices to meet the B Corp standards. This can be challenging, especially for established companies with entrenched practices and cultures. It requires buy-in from all levels of the organization and a willingness to challenge the status quo.

  1. Ongoing reporting

B Corps are required to report their social and environmental performance annually. This includes disclosing information on the company's governance, workers, community, environment, and customers. The reporting requirements can be time-consuming and challenging, especially for small businesses with limited resources. However, it's essential to demonstrate the company's commitment to transparency and accountability.

In conclusion, becoming a B Corp is a significant decision that requires a commitment to social and environmental responsibility. While the benefits of becoming a B Corp are substantial, the process of certification can be challenging and time-consuming. The hassles of becoming a B Corp include completing the B Impact Assessment, meeting legal requirements, financial and time investment, change management, and ongoing reporting. However, for businesses that are committed to balancing purpose and profit, becoming a B Corp can be a game-changer.

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