B CORP
Aside from turning a profit, staff wellbeing and environmental impact are front-of-mind for established salon owners today. In a people-focused industry like hairdressing, a happy workforce makes for happier clients. Does B Corp help? WORDS: ANNIE MAY BYRNE-NOONAN
Achieving B Corp status is a way to smash your social and environmental goals while remaining accountable. It’s a label you’ll see increasingly on company and products, but do you know what it signifies? Let’s break down what it means to be ‘B Corp’, and how to evaluate whether to go for it, plus what achieving certification, means:
public on your B Corp profile on B Lab’s website. Assessment is rigorous; all aspects of your business, including practices, processes, teams and departments are evaluated. You will be expected to share your business model and be transparent about your operations and how you work with supply chains.
B Corp is a globally recognised standard. Any B Corp entity has established social and environmental principles that sit right at the heart of its business. Via its products, practices and profits, a B Corp aims to benefit all and do no harm. These values are embedded in a mission statement, and included in articles of association, underpinned by a promise to do social and environmental good. An ethical business that rewards all stakeholders, and not just shareholders, being B Corp goes beyond lip service.
Gaining B Corp status can be a fantastic PR tool, showing you are a business that cares about its people and the planet. Use it to build trust with increasingly green-minded customers, retain your best talent with your people-focused policies, and attract more including Gen Zs who seek purpose-driven employers and greater employee benefits. Shout about it in your submissions for industry awards, and harness it to attract the interest of mission-focused investors. As equality, wellbeing and the environment are huge topics, becoming a B Corp gives you the stamp of approval that you’re an ethical organisation with the receipts to prove it. For those keen to shift change beyond their organisation, gaining B Corp status (even if you’re a smaller business) can help you influence other, bigger companies in the B Corp community, helping to forge relationships with major brands.
Practical changes a business can make include limiting excess waste, employing ethical supply chain practices, and increasing worker benefits such as career development, financial security, and wellness. To get certified, you need to score well on a series of social and environmental metrics. You must score over 80 out of around 250 points, which is validated by a recognised authority wherever you are in the world. Here in the UK certification is conferred by B Lab, a charity launched to make business a force for good.
However, getting certified costs money. There’s a one-off submission fee of £250 + VAT and fees are paid annually depending on your total revenue for the past 12 months. Certification is worth it if you are committed to sticking to your goals, but remember it’s not permanent. To retain your B Corp status, you must update your B Impact Assessment (BIA) and confirm your updated B Impact score every three years, or after a company ownership or IPO change. Gaining certification only to lose it later won’t look great.
Part of the B Global Network, B Lab examines three areas for certification. First is social and environmental performance, which requires a B Impact Assessment score of 80 or above and passing B Lab’s risk review (an assessment of any potential negative impacts on people and planet from your business). The second is legal commitment, which means you must change your corporate governance structure to be accountable to all stakeholders. Third is transparency, where you must allow information about your performance measured against B Lab’s standards to be made
So, pursue meaningful change over optics as becoming a B Corp is an ongoing journey, and no business is perfect. 46