B-Lab & Patagonia - the first California Certified B Corporation (2024)

FAQs

How hard is it to get a B Corp certification? ›

Yes, it is hard to get B Corp certification. A company must meet high standards for social and environmental performance, meet a legal requirement, and pass a rigorous review process.

Overall B Impact Score

Based on the B Impact assessment, Patagonia earned an overall score of 166.0. The median score for ordinary businesses who complete the assessment is currently 50.9.

B Corp Certification Process

Certification is a time and resource-intensive process that takes at least 12 months to complete. Only 1 in 3 applying actually get certified. Certifications then last three years. At the end of those three years, each business must recertify.

However, B Lab certification allows the company bylaws to remain secret. The fact that B Corp standards are not legally enforceable, and that none of a companies' governing bodies and leadership are liable for damages if a company fails to meet them has also been flagged as a problem.

Overall B Impact Score

The median score for ordinary businesses who complete the assessment is currently 50.9.

B Corps must balance purpose and profit

There's no doubt that becoming a B Corp will enable a firm to stand out from the non-accredited crowd. Research suggests that achieving this status this will increase the company's potential to attract more capital, talent and custom. But there are no guarantees, of course.

Patagonia was the first California company to sign up for B certification, in January, 2012, joining over 500 certified B Corporations in 60 different industries.

Cons. Obtaining B Corp certification may be a costly, in terms of time and resources rather than certification. Typically, the process of certification takes four to six months, whereby certification is not guaranteed so it could take longer.

It Might Take a Long Time to Form. One of the major drawbacks of forming a B corp is that it takes a long time for your business to pass all the necessary qualifications and certifications to ensure that you're complying with all the necessary practices.

Do B Corps pay taxes? ›

Benefit corporations are not tax-exempt, like non-profits, because they are still for-profit entities. A benefit corporation will still be taxed as an S or C Corp, or alternative pass-through entity where applicable.

The time a company needs to complete the B Impact Assessment, achieve the minimum score, and submit it for review by B Lab is highly variable. Once a company submits its assessment, the certification process typically takes between 6-12 months.

In order to maintain their certification in good standing, and successfully renew their certification every 3 years, Certified B Corps must meet the following requirements: Every 3 years, submit an updated B Impact Assessment (BIA) at least 6 months prior to their Recertification Date.

B Corp Certification lasts for three years. After three years, a company must recertify by completing the BIA again and submitting it for review to B Lab. The performance standards also get updated every three years.

The time a company needs to complete the B Impact Assessment, achieve the minimum score, and submit it for review by B Lab is highly variable. Once a company submits its assessment, the certification process typically takes between 6-12 months.

In order to become a Certified B Corporation, eligible companies must submit their assessment to B Lab for verification and pay relevant fees throughout the certification process. To remain a Certified B Corp year after year, a B Corp must also pay an annual certification fee. Learn more about our fees.