How does B corporation governance work?

B Corporation governance involves a rigorous certification process designed to ensure that businesses operate with a commitment to positive environmental and social impact. Here's an overview of how it works:

1. Certification Body: B Corps are certified by B Lab, a nonprofit organization. The process includes a comprehensive assessment of a company's performance across various areas, such as governance, workers, community, environment, and customers 1.

2. Assessment Criteria: Companies must fill out a detailed assessment that examines practices like employee benefits, equity distribution, environmental impact, and community engagement. This assessment is rigorous and companies must score high enough to be audited and potentially certified 1.

3. Audit Process: If a company meets the preliminary criteria, B Lab audits the answers provided in the assessment and conducts a thorough review, which may include site visits and other forms of verification 1.

4. Ongoing Requirements: Certified B Corps must continue to meet B Lab’s standards over time, which involves reassessment and accountability to maintain certification 1.

5. Public Pledge: Companies that become B Corps make public commitments about their transparency, environmental practices, and social impact, effectively institutionalizing governance rules around these areas 2.

6. Legal Structure: Many B Corps amend their legal governing documents to require their board of directors to balance profit and purpose, protecting the company's mission even during leadership changes or other major corporate events 3.

   
   1
   The B Corp Certification
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   2
   B Corporations and Biggie's 25th Anniversary
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   3
   Corporate Governance Insights
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These measures ensure that B Corps not only aim to be profitable but also drive positive change in society and the environment.