What is the history of the B corporation?
B Lab was founded in 2006 by a group of friends, two of whom founded the basketball footwear and apparel company And1, who wanted to make business a force for good. The certification proved popular, and the company had signed up 82 B corporations by the following year.
The three main criteria for businesses to be a B corp are verified social and environmental performance, legal accountability, and public transparency.
Businesses interested in becoming a B corporation can start by taking an impact assessment for the social and environmental performance section, which gives the company a score on a 200-point scale in categories like governance, labor, community, environment, and customers. Businesses must score at least 80 points on the assessment to get the certification.
Additionally, there's a legal requirement to ensure that the B corp's best practices be able to survive leadership changes. Companies can also incorporate as a public benefit corporation in many states, which gives them a corporate structure that qualifies as a B corp.
Finally, the company also needs to meet a public transparency requirement.