B Lab
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| B Lab | |
|---|---|
| Name | B Lab |
| Type | Nonprofit |
| Founded | 2006 |
| Founders | Jay Coen Gilbert, Bart Houlahan, Andrew Kassoy |
| Headquarters | Berkeley, California |
| Area served | Global |
| Mission | "Use business as a force for good" |
B Lab B Lab is a nonprofit organization that created the B Corporation movement to certify companies meeting rigorous social and environmental performance standards. The organization originated from entrepreneurs with ties to the microfinance and social entrepreneurship communities and has influenced corporate law, investment, and standards conversations across jurisdictions such as Delaware, United Kingdom, European Union, Canada, and Australia. B Lab's certification program and policy advocacy intersect with actors including impact investors like Acumen Fund, standard-setters like Global Reporting Initiative, and social enterprises such as Patagonia and Ben & Jerry's.
History
B Lab traces roots to founders Jay Coen Gilbert, Bart Houlahan, and Andrew Kassoy, who previously co-founded AND 1 and engaged with Ashoka and Skoll Foundation networks. Early milestones include the launch of the B Corporation certification in 2007 and the creation of the B Impact Assessment tool. Growth accelerated through partnerships with organizations such as Social Enterprise UK, B Team, and Rockefeller Foundation. Legal innovations included advocacy for benefit corporation statutes like those enacted in Maryland and Vermont, building on corporate law dialogues involving law firms such as Wilson Sonsini and academics at Harvard Law School and Stanford Law School.
Structure and Governance
The organization operates as a nonprofit with a board drawn from leaders in philanthropy, law, and business, including figures affiliated with Skoll Foundation, Ford Foundation, and Omidyar Network. Governance integrates standards committees with representatives from certification bodies like Underwriters Laboratories and consulting firms such as McKinsey & Company and Bain & Company. Regional affiliates coordinate with entities in South Africa, Brazil, Japan, and India, and collaborate with multilateral institutions like the World Bank and International Finance Corporation. Accountability mechanisms reference models from International Organization for Standardization and compliance frameworks used by SustainAbility and CDP (formerly Carbon Disclosure Project).
B Corp Certification
Certification requires companies to complete the B Impact Assessment, achieve a minimum score, and change governing documents to align with stakeholder considerations—a process paralleling best practices from Equator Principles and OECD Guidelines for Multinational Enterprises. Notable certified businesses include Eileen Fisher, King Arthur Flour, Warby Parker, DanoneNorth America (formerly WhiteWave Foods), and Tony's Chocolonely. Certification categories span manufacturing, finance, technology, and professional services, echoing sector frameworks from SASB and ISO 26000. Investors and funds such as Generation Investment Management and TIAA-CREF have used B Corp status when evaluating portfolio companies.
Standards and Assessment
The organization maintains sector-specific standards informed by dialogues with regulators at Securities and Exchange Commission, academics at Yale School of Management and London School of Economics, and nonprofit partners such as Oxfam and WWF. The B Impact Assessment measures governance, workers, community, environment, and customer impact, referencing methodologies from Life Cycle Assessment practitioners and research by Harvard Business School and MIT Sloan School of Management. Verification includes document review and on-site audits, with guidance from auditing firms like KPMG and PricewaterhouseCoopers. Data reporting intersects with initiatives led by Global Impact Investing Network and Impact Reporting and Investment Standards (IRIS).
Global Impact and Initiatives
B Lab has launched national movements and standards hubs collaborating with governments such as New Zealand and Chile and networks including European Commission working groups and ASEAN business forums. Programs include support for small and medium enterprises, partnerships with development agencies like USAID and DFID, and campaigns involving consumer-facing brands such as Seventh Generation and Allbirds. Research collaborations have been conducted with institutions like Columbia Business School and INSEAD, and impact metrics inform policy dialogues at United Nations Global Compact and G20 convocations. Regional accelerators have worked with incubators such as Techstars and Y Combinator alum firms to scale certified models.
Criticism and Controversies
Critiques have emerged from scholars at Columbia Law School, University of Chicago Booth School of Business, and commentators in outlets like The Economist and Financial Times regarding certification rigor, conflicts of interest, and scalability. Debates parallel controversies experienced by standards organizations including Fairtrade International, Rainforest Alliance, and Forest Stewardship Council over auditing practices and market signaling. Cases involving large certified firms prompted scrutiny from reporters at ProPublica and legal analyses from Stanford Law School on governance amendments and benefit corporation conversions. Additional tensions involve interactions with regulatory agencies such as Federal Trade Commission on greenwashing claims and tax authorities in jurisdictions like France and Germany.