5. THEORETICAL FRAMEWORK
5.8. B Lab and the B Corps Certification
5.8.2. The B Impact Assessment (BIA)
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USD $5 MM - USD $9,999,999 USD $2,500
USD $10 MM - USD $19,999,999 USD $5,000
USD $20 MM - USD $49,999,999 USD $10,000 USD $50 MM - USD $74,999,999 USD $15,000 USD $75 MM - USD $99,999,999 USD $20,000 USD $100 MM - USD $249,999,999 USD $25,000 USD $250 MM - USD $499,999,999 USD $30,000 USD $500 MM - USD $749,999,999 USD $37,500 USD $750 MM - USD $999,999,999 USD $45,000
USD $1 B+ USD $50,000+
5.8.2. The B Impact Assessment (BIA)
The BIA is a free tool from B Lab that makes feasible the idea of using the company as a force for good through a series of concrete and measurable steps. [4]
The BIA delivers a diagnosis (through an objective and comprehensive scale) about the overall impact of a company. It’s worth to note that it does not necessarily give a diagnosis of how important that impact is, which is what differentiates it from GRI sustainability reports or ISO regulations.
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Figure 3: The B Impact Assessment
The B Impact Assessment to obtain the B Certification involves three steps: [29]
A. “Assess your Impact”:
It involves evaluating the way in which the company carries out their best practices. A brief evaluation can be made as a point of reference to show how the organization is performing with respect to each of the dimensions of sustainability. (refer to Appendix B in Page 92)
The company must answer questions that are tailor made for each company in accordance to B Impact Assessment
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their size, sector and geography.
Governance:
The structure and control of corporate management are evaluated together with the responsibility and transparency of the company. This section focuses on the company's mission, stakeholder participation, and the overall transparency of the company's practices and policies.
In addition, the involvement of the stakeholders and the commitment of the company with the stakeholders are also evaluated.
• Corporate responsibility: adoption of an explicit social and environmental corporate mission and internal practices oriented to the implementation of that mission; business management to achieve long-term success through the creation of a directory in which the different interest groups of the company are represented; and protection against fraudulent financial management and conflicts of interest.
• Transparency: Employee access to the financial information properly audited by an international public accountant; and the relationship with customers based on feedback.
• Corporate management metrics: to clarify how the company prepares its corporate and financial information.
Workers:
This section evaluates the relationship of the company with its workforce. It measures how the company treats its workers through compensation, benefits, training and ownership opportunities provided to employees. It also focuses on the general work environment within the company, communication, labor flexibility, organizational culture and health and safety practices.
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• Employee metrics: total number of workers, different types of working hours and wages.
• Compensation, benefits and training: employment opportunities and productivity improvement through consistent financial incentives.
• Employee ownership: opportunities offered by the company to attract more human talent by offering partial ownership shares of the company.
• Work environment: opportunities offered by the company to improve the performance of its workers through the feedback the written employee manual.
Community:
This part measures the impact of the company on external interest groups, or rather, on the community in which the company operates; evaluating the relationship with its suppliers, distributors, diversity and participation in the local economy / community. It looks at the practices and policies of all community service, diversity in employees, job creation, civic participation and charitable donations of the company or its employees. It also includes an assessment of whether the product or service offered is intended to solve a social problem;
including access to basic services, health, education, economic opportunities, and the arts.
• Community practices in regards to the relationship between the growth of the company and the number of jobs it provides in low-income, low-employment communities; the diversity of employees in different areas of the organization and the suppliers; the promotion of volunteer programs among workers and donations in kind or money to local non-profit entities and causes; ways in which the company maintains a relationship with its community; and actions to maintain and improve the standards of the company’s
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suppliers and its products or services.
Environment
The Environment section assesses the direct and indirect environmental impact of the company and its operations. The environmental performance of a company is evaluated through its facilities; materials, resources and the use of energy; and their carbon emissions.
The impact of the supply chain and distribution channels is considered. it also looks at whether the products or services of a company are designed to solve an environmental problem, including products that help in the supply of renewable energy, to preserve natural resources, reduce waste, promote land and wildlife conservation, prevent toxic / dangerous substances or pollution, educate and measure environmental problems, etc.
• Land, office and plant: performance of the facilities in terms of materials, natural resources, energy used and total carbon emissions.
• Inputs: the use and conservation of energy, water and materials in the operations.
• Production: the environmental impact of the distribution channels and supply chain are evaluated.
Business Model:
The different business models of the companies are evaluated to verify if there are other practices not identified in the rest of the evaluation that address social and environmental issues.
That is, it is identified if the business model is of impact; and if it is, in what specific type of impact it is focused on.
• Impact on Customers: focuses on whether a company sells products or services that
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promote public benefit, and whether these products / services are directed towards marginalized populations. The questions in this case are intended to measure whether the company is designed to solve a social or environmental problem (as seen in the community and environment sections)
• Impact business model: The type of social and environmental business model most suited to each company is evaluated, taking into account the problem that the company seeks to solve:
• Business model of workers: assesses whether the fact that the workers are also owners of the company is central to the company or not.
• Community business model: assesses whether the core activity of the company is to produce products for the community; as for example those associated with education or provision of basic services; or if the core activity of the company is to carry out community practices, such as human resources development, micro-franchising, cooperatives of producers and/or charitable donations.
• Environmental business model: evaluates whether the core activity of the company is to produce environmental products; as for example production of renewable energy, reduction of garbage, conservation of life and wild land, education, research and/or measurement of environmental problems.
B. “Compare your Impact”
It consists in reviewing the BIA and see how the company is doing. A comparison is made, taking as a point of reference other companies, and that way the company can see in what aspects the organization outperforms other companies or in what situations they can learn from
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them. (refer to Appendix B in Page 92)
This is where B-Analytics comes into play. This is part of one of B Lab’s main initiatives, the development of a customizable platform to measure, report and compare, through benchmarks, the social and environmental impact of companies.
It also serves as a global database of social and environmental performance of different private companies. It is the exclusive source of impact data in B Corps and in companies and funds rated as GIIRS5 (comprehensive, comparable, and transparent system for assessing the social and environmental impact of companies and funds with a ratings and analytics approach analogous to Morningstar investment rankings). In other words, it is used by main impact investors, fund managers, and impact entrepreneurs worldwide to measure social and environmental variables. [30]
C. “Improve your Impact”
Companies have access to different tools to improve their impact. These tools include
‘Customized Improvement Reports’ that allow the creation of an improvement roadmap to deepen the impact of the organization; ‘Best Practice Guides’ that provide useful tips and examples to help companies implement these industry best practices; and ‘Improvement Case Studies’ to see what other businesses implemented to improve their impact.
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6.1. Overall happiness and//or satisfaction with the B Certification
Figure 4: Happiness / satisfaction with the B Certification in Taiwan and Nicaragua
B Corps in both Taiwan and Nicaragua express to be 100% happy and satisfied with having obtained the B Certification.
6.2. Failed attempts at obtaining the B Certification
Figure 5: Failed attempts at obtaining the B Certification in Taiwan and Nicaragua
100%
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Happy and/or satisfied with the B Certification in Taiwan
Yes No
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Happy and/or satisfied with the B Certification in Nicaragua
Yes No
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Taiwanese B Corps past failed attempts at B Certification
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Nicaraguan B Corps past failed attempts at B Certification
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