B Corp certification has become increasingly important to small and medium-sized businesses (SMEs) across Australia as consumers, particularly younger generations, seek out companies who share their values and have a positive impact on the world.
By becoming a B Corp SMEs can show their commitment to do good and appeal directly to these consumers’ values.
B Corp certification has many benefits for SMEs. It can help them improve their social and environment performance which in turn leads to increased brand recognition and customer loyalty. B Corps also have access to resources and a network of socially responsible companies that can help them succeed and grow.
Gavin Bunshaw is the co-chief executive officer of DB Results in Australia. He recognizes the importance B Corp certification. Bunshaw says that organizations who achieve B Corp status understand that doing good and being profitable are not mutually incompatible and have a clear intention and commitment to both.
Gavin stated that “B Corp certification is an important differentiator on the market, as it highlights companies who are committed to making a positive impact in society and the environment.”
“We have seen a significant shift in Australian workplaces as employees, customers and community members, along with government officials, are increasingly looking for companies that share their values and benefit people, communities, and the environment. B Corp’s positive impact on our culture, both internally and externally has increased employee morale and recruitment. It also raised public and customer awareness.
The certification validates and acknowledges outstanding performance in Governance, Workers and Community, Environment and Customers. It provides us and other businesses with a framework for improving impact on society and environment.
It is a rigorous process to become a Certified B Corporation. This involves assessing a company’s transparency, legal responsibility, and social and environmental impact. SMEs wishing to become B Corp certified must complete the B Impact Assessment. This examines the impact they have on their workers, customers and community. SMEs who complete the B Impact Assessment must submit documentation to support their answers, including financial statements, tax return, and other relevant documents.
After the verification, SMEs receive a score-based report highlighting their strengths and weakness. The SMEs will then be able to create a plan of improvement for any areas which need attention. The final documentation can be submitted for review once the SMEs have implemented their improvement plan. The company will be certified a B Corp if it meets the B Corp standard. B Corp certification is valid for two-years, and SMEs are required to undergo recertification at least every two years.
B Corp certification in Australia and New Zealand is growing rapidly. Around 460 businesses are currently certified. The number of B Corps certified globally exceeds 4,900. More companies join the movement each year. B Corps tend to be small and medium-sized businesses, since the certification was initially designed for this sector.
B Lab, a non-profit organization behind the B Corp Certification, believes that SMEs are best suited to make positive impacts on the environment and social issues. The SMEs can often be more flexible and adaptable than large corporations, and pivot more easily towards sustainable and socially-responsible practices. It is because SMEs tend to be less bureaucratic, and are more focused on building relationships with customers and their communities.
Businesses can have a positive impact on the world by prioritizing their social and environmental responsibilities. They will also improve their performance and build a strong reputation.
