B corps are for-profit corporations that have received certification from B Lab, a nonprofit organization that certifies businesses that meet specific social, environmental, and governance standards.
B corps are distinct from, but may overlap with, the United States legal designation of a benefit corporation (a for-profit corporate entity which in many US states defines a positive impact on society, workers, the community, and the environment as part of the “best interest of the corporation” but does not include any specific certification).
Critics have accused the B crop certification of being a marketing strategy that allows corporations to improve their social, environmental, and governance image without having to conform to any legally binding targets. For example, Nespresso gained B corp status despite its emphasis on single-serve coffee pods and its parent company’s (Nestlé) history of human rights violations.
An academic consensus on the impact of B corp certification is yet to emerge, but empirical studies have suggested that B Corp certification is primarily seen as a way to improve a company’s external reputation with investors, clients and consumers rather than as a way to reshape internal processes which would improve their social, environmental, and governance standards.
In the chocolate industry, several B-Corps have emerged, including Divine Chocolate, Tony’s Chocolonely, PACCARI, and Uncommon Cacao.
Próximamente versión en español
Entry added: August 7, 2023
Verified on: September 14, 2023
Authored by
John Wagner Givens, Associate Professor
Academic / university faculty
References
“B Corp Certification and Its Impact on Organizations Over Time,” Malu Villela, Sergio Bulgacov and Glenn Morgan, Journal of Business Ethics, December 17, 2019.
“B Lab Global Site,” B Lab Global, Accessed on August 29, 2023.
“B Corp gold standard may just encourage green-washing, critics claim,” Caroline Bullock, The Times, November 30, 2022.
“Nespresso: Known for Human Rights Violations, Now B Corp Certified,” Anna Canning, Fair World Project, May 5, 2022.
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