The B-Lab, the non-profit organisation that awards B-Certifications to business enterprises, is in the driver’s seat of a global movement that is “using business as a force for good.” A company that aspires to become B-Certified and gain the ‘B’ brand association must achieve a verified score of at least 80 points on the B Impact Assessment, a 200-point diagnostic covering governance, workers, community, environment, customers, and a disclosure questionnaire. They must also meet the B-Lab’s transparency requirements and amend their corporate charter to incorporate the interests of all stakeholders into the fiduciary duties of directors and officers.
In less than a decade, the B-Lab has brought about a sea-change in the business world. The B-Lab’s network of “business leaders that seek to redefine success in business, so that one day all companies compete not only to be the best in the world, but to be the best for the world” feature global brands ranging from Patagonia to Natura Cosméticos SA. At present, there are over 3,000 B-Certified companies across 71 countries and momentum is building. This seems like great news. However, there is a caveat.
The B-Lab’s current stance on human rights compromises the fidelity of the entire movement and creates a situation where the B movement and the business and human rights (BHR) movement diverge rather than converge. Put another way, companies have the option to choose whether they want to focus on doing good and giving back, or on doing no harm and being accountable. This is a lose-lose scenario that weakens both movements.
