The evolution of good business: Understanding the new B Corp standards and what they mean

The new B Corp standards from B Lab are here. At Gerald Edelman, we are a proud B Corp. Certified in 2024, our purpose is rooted in doing good business with good people. That’s why we’ve been keenly following the recent announcement from B Lab regarding their new standards.

These updated standards mark a pivotal moment for the B Corp movement. They ensure the certification remains relevant and impactful, raising the bar of what it means to be a good business.

What are the key changes?

Minimum requirements for new impact topics

The most notable shift is the introduction of minimum requirements across seven core Impact Topics that every B Corp will now need to meet. These areas are:

• Purpose and stakeholder governance
• Climate action
• Human rights
• Fair work
• Environmental stewardship and circularity
• Justice, equity, diversity and inclusion
• Government affairs and collective action

The move away from a points-based system towards baseline standards signifies a commitment to ensuring all certified B Corps are meeting a more rigorous level of performance across these crucial areas.

Continuous improvement

Another significant aspect of the new standards is that more emphasis is being placed on continuous improvement. The updated framework integrates mandatory improvement actions, ensuring that businesses evolve alongside global challenges and push the boundaries of what responsible business can achieve. During the certification journey, companies will be expected to advance their actions over a five-year period. Initially, companies must meet the Year Zero requirements, then gradually comply with Year Three and Year Five requirements. This structured approach ensures that B Corps remain at the forefront of responsible business leadership, constantly striving for greater positive impact.

What does this mean for us (and potentially you)?

For Gerald Edelman, having certified under the previous framework, although apprehensive, we see these new standards as a welcome evolution. While we are currently reviewing the specifics of these changes, since certifying our focus has been on putting together a team of B Keepers (thank you Innocent for the inspiration) to review our application and put together an action plan for where improvements can be made.

The new standards emphasise a more holistic and comprehensive approach to impact. Therefore, for any company considering becoming a B Corp, the updated framework signifies a more rigorous assessment, likely making initial certification more challenging. However, for existing B Corps, it means demonstrating tangible commitments and progress across all seven impact areas. Either way it means that once certified, you are in the company of businesses equally devoted to the B Corp ethos and striving for genuine impact.

A stronger movement for a better future

B Lab’s decision to implement these changes underscores the growing importance of corporate accountability. By raising the bar for entry and requiring ongoing improvement, these new standards will foster greater transparency and encourage more impactful actions across the B Corp community. It’s an exciting step forward, and we are proud to be part of a movement that continuously strives for higher standards, knowing that the commitment required strengthens the integrity and value of the B Corp certification.

Want to learn more?

If you’re curious about the B Corp certification, or if you’d like to discuss our experience with the B Corp accreditation process, please don’t hesitate to get in touch. We’re always happy to share our journey and insights as a company committed to good business.