B Lab
Nonprofit network certifying companies for social and environmental performance.
| Date | Investors | Amount | Round |
|---|---|---|---|
| - | investor investor | €0.0 | round |
N/A | Grant | ||
| Total Funding | 000k | ||
B Lab is a global nonprofit organization founded in 2006 that certifies for-profit companies, known as B Corps, for meeting high standards of social and environmental performance, accountability, and transparency. The organization was co-founded by Jay Coen Gilbert, Bart Houlahan, and Andrew Kassoy, who shared a background in business and private equity and were motivated to create an infrastructure that allows businesses to be a force for good. Gilbert and Houlahan were previously co-founder and president, respectively, of the basketball apparel company AND1, while Kassoy had a career in private equity. Their experiences led them to establish a framework to help companies remain mission-aligned as they scale.
The core of B Lab's work is the B Corporation certification. To achieve this, companies must undergo the B Impact Assessment, a comprehensive evaluation of their impact on five key areas: governance, workers, community, environment, and customers. A minimum score of 80 out of 200 is required to be eligible for certification. Beyond the assessment, companies must also make a legal commitment to be accountable to all stakeholders, not just shareholders, and pay an annual certification fee based on their revenue. The certification must be renewed every three years to ensure continuous improvement and adherence to the standards.
B Lab operates as a global network, with affiliated organizations in various countries and regions that support the local B Corp community and promote economic systems change. The nonprofit generates revenue through a combination of philanthropic funding from foundations like the Ford Foundation and Omidyar Network, and earned income from the annual certification fees paid by B Corps. This model supports B Lab's initiatives, which include not only certification but also the creation of tools, programs, and advocacy for legal structures like the benefit corporation. As of December 2023, over 7,600 companies across 157 industries and 84 countries had become Certified B Corporations.
Keywords: B Corp certification, social impact, environmental performance, stakeholder governance, corporate accountability, B Impact Assessment, benefit corporation, sustainable business, nonprofit network, systems change