Who is eligible to be a B Corp?
Certified B Corporations™ work collectively to bring about B Lab’s Theory of Change and the B Lab Standards keep our community united through shared values and aligned goals.
B Lab’s approach to assessing eligibility and negative impact
Embedding risk management in the B Lab Standards
Foundation Requirements: The first stage of the B Lab Standards are Foundation Requirements, which ask companies to assess their negative impacts. B Lab’s approach carefully considers whether potential B Corps could—even inadvertently—cause or contribute to harming people or the planet. Companies associated with practices we consider risky but not ineligible may still be able to proceed with certification but they will have to complete extra due diligence to identify, prevent, and mitigate their negative impacts, captured in the risk profile.
Who is ineligible to be a B Corp?
We consider companies in certain industries to be “ineligible” for B Corp certification because they sell products or services that undermine B Lab’s Theory of Change. To determine these industries, we engaged in research and expert input (such as incorporating the IFC Exclusion List and European Investment Bank [Exclusion] List), engaged wider stakeholders through public consultation, and submitted to our governance bodies for approval.
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2. Impact Topics
In addition to these Foundation Requirements, ongoing work to identify and mitigate negative impacts on human rights and the environment is embedded within Impact Topics in the B Lab Standards. Throughout their five-year certification cycle, B Corps and third-party auditors will continue to assess these risks, and companies will need to continue undertaking due diligence to monitor their impact—strengthening our community by raising the standards for responsible business practices across industries.
Learn more about our standards.
3. Independent verification and auditing
B Lab uses independent, third-party assurance providers to assess all companies undertaking B Corp Certification. From auditing throughout the five-year certification cycle, to reviewing actions addressing non-conformities, certification relies heavily on independent third-party reviews. This increases impartiality and ensures that we meet industry best practices, so our community can feel confident in the credibility of B Corp Certification.
How to determine B Corp eligibility
Three steps to see if your business can pursue certification.
1. Meet eligibility requirements
A company must not be significantly involved in an ineligible industry, be legally incorporated, in operation for at least 12 months, and comply with local and national laws.
2. Commit to stakeholder governance
Adopt the B Corp Legal Requirement, including embedding stakeholder governance principles into legal frameworks and signing the Declaration of Interdependence.
3. Conduct a risk assessment
Create a risk profile using our risk profiling tool to determine any additional due-diligence sub-requirements you must meet as part of the certification process.
How previous B Lab Standards addressed risk
The previous version of the B Lab Standards, V1.6, had separate risk standards. You can read more about our previous approach to eligibility and risk under V1.6 here.
How previous B Lab Standards addressed risk
The previous version of the B Lab Standards, V1.6, had separate risk standards. You can read more about our previous approach to eligibility and risk under V1.6 here.